Answer:
Net Cash Flows from Operating Activities Using Indirect Method is $71,825
Explanation:
In Cornelius Inc.:
Increase in Accounts receivable = $17,650 - $11,500 = $6,150
Decrease in Inventory = $27,825 - $33,800 = -$5,975
Increase in Accounts payable = $24,600 - $15,900 = $8,700
Cornelius Inc. uses the indirect method.
Net Cash Flows from Operating Activities = Net Income + Depreciation expense - Increase in Accounts receivable + Decrease in Inventory + Increase in Accounts payable = $52,000 + $11,300 - $6,150 + $5,975 + $8,700 = $71,825
Answer:
B. Market Value Method
Explanation:
First, it should be noted that Joint Product costing method allocates joint costs based on the the value of sales per time. Furthermore, Joint costs ratio to the value of sales remains the same for all the products that are evaluated based on the method. When we talk of value of sales, we are automatically referring to the value at which the market receives the product or buys the product so this is market value method.
The implication of this, is that the gross profit percentage used for all the products undert this costing method will be the same. oint product costing method.
This costing method is usually employed by a business when maunfacturing process of the production process of goods is such that there is a stage where products are split off for different reasons. The production costs or manufacturing costs before the split of must be allocated threfore, a costing method (Joint Product Costing Method or Market Value Method) is assigned.
Answer: An investor could buy this bill for $9837
.
We follow these steps to arrive at the answer:
First we calculate the interest on the bill for 180 days, assuming that the value of the T-bill is $1.
We consider the ask rate since this is the rate an investor will get from buying this bill.
[tex]Interest on the bill = 0.0326 * \frac{180}{360}[/tex]
A t-bill doesn't pay interest; instead the interest amount is deducted from the Face Value in order to arrive at the purchase price.
If the face value of the t-bill is $1, the purchase price is <u></u>
Since the actual face value of the t-bill is $10,000, the purchase price is
<u></u>
Answer:
YTM = 4.40%
Explanation:
From current yield we solve for price:
current yield: annual payment/ price
0.07 = 1,000 x 8.5% / price
85 / 0.07 = price = 1214,285714285714 = 1214.29
Now we solve for yield to maturity. This is the rate at which the present value value of the maturity and coupon payment are equal to his current price:
C 42.50
time 12 (6 years x 2 payment per year)
rate (semiannual as the payment are twice per year)
PV coupon
Maturity 1,000.00
time 12.00
rate
PVmaturity
PV c + PV m = $1,214.2903
So we got:
From here we solve using excel or financial calculator as you suggest.
<u>notice this will give you the semiannual rate: 0.021988524 = 2.20%</u>
You will have to multiply the answer by 2 giving you the 4.40% as you were told.