All categories

3 years ago

The income statement of Whitlock Company is presented here.

Business

1 answer:

bazaltina [42]3 years ago

3 0

Answer:

$1,146,800

Explanation:

Preparation for the operating activities section of the statement of cash flows for the year ended November 30, 2020

WHITLOCK COMPANY

Partial Statement of Cash FlowsFor the Year Ended November 30, 2020

Cash flows from operating activities

Net income $1,366,800

Adjustments to reconcile net income to net cash provided by operating activities..

Activities

Depreciation expense $70,000

Decrease in inventory $500,000

Decrease in accrued expenses payable ($100,000)

Increase in prepaid expenses ($150,000)

Increase in accounts receivable ($200,000)

Decrease in accounts payable($340,000)($220,000)

Net cash provided by operatingActivities $1,146,800

($1,366,800-$220,000)

Therefore the operating activities section of the statement of cash flows for the year ended November 30, 2020 is $1,146,800

You might be interested in

Dietterich Electronics wants its shareholders to earn a return of 15% on their investment in the company. At what price would t

Tema [17]

Answer:

(a) price stock need = $1.667

(b) price stock need = $6.667

(c) price stock need = $11.667

(d) price stock need = $16.667

Explanation:

given data

return = 15% = 0.15

to find out

what price would the stock need to be priced today

a. $0.25 constant annual dividend forever?

b. $1.00 constant annual dividend forever?

c. $1.75 constant annual dividend forever?

d. $2.50 constant annual dividend forever ?

solution

(a) price stock need = $\frac{0.25}{0.15}$

(a) price stock need = $1.667

(b) price stock need = $\frac{1.00}{0.15}$

(b) price stock need = $6.667

(c) price stock need = $11.667

(d) price stock need = $\frac{2.50}{0.15}$

(d) price stock need = $16.667

3 0

2 years ago

Pat starts a business called ValueCentral, the concept takes off, and the company has an IPO and goes public. The company is gro

defon

Answer:

Very small or no dividend

Explanation

Dividend is simply the distribution of profit made by company, firm e.t.c to its shareholders. Most startup company do pay little dividend due to the profit outcome but others do not. It is necessary to pay dividend to shareholders as it shows your devotion and commitment to look after and be in one mind with investors.

most companies that are just startups do not pay a dividend mostly during the early stage of growth. The revenue derived from startup is used to grow and develop the company and not to share with shareholders but sharing little is not bad a all.

3 0

3 years ago

Bretts Construction Company had a contract starting April 2017, to construct a $6,000,000 building that is expected to be comple

ExtremeBDS [4]

Answer: $230,000

Explanation:

Gross profit to be earned from project:

= Construction price - cost of construction

= 6,000,000 - 5,500,000

= $500,000

Percentage of costs incurred in 2017:

= 2,530,000 / 5,500,000 * 100%

= 46%

The Gross profit for 2017 is therefore:

= Percentage of cost incurred * total gross profit

= 46% * 500,000

= $230,000

4 0

2 years ago

Companies that use a two-tier forecasting system first cluster (or "roll up") several similar services or products in a process

Lera25 [3.4K]

Answer:

The answer is D) aggregation

Explanation:

An aggregate forecast addresses a company's capacity requirements

5 0

2 years ago

National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6

Temka [501]

Answer:

$8.78

Explanation:

National advertising made dividend payment of $0.75 per share

The dividend is expected to grow at a constant rate of 6.50%

= 6.50/100

= 0.065

The company beta is 1.85

The required return on the market is 10.50%

The risk free rate is 4.50%

The first step is to calculate the rate of return using the CAMP model

R = Risk free rate+beta(market return-risk free rate)

= 4.50%+1.85(10.50%-4.50%)

= 4.50%+1.85×6%

= 4.50%+11.1

= 15.6

Required rate of return= 15.6

Therefore the current stock price can be calculated as follows

Po= Do(1+g)/(r-g)

Where Do= 0.75, g= 0.065, r= 15.6

Po= 0.75(1+0.065)/(0.156-0.065)

Po= 0.75(1.065)/0.091

Po= 0.7987/0.091

Po= $8.78

Hence the company current stock price is $8.78

3 0

3 years ago