Answer:
net cash from operating activities = $0
Explanation:
given data
net income = $70,000
dividend payment = $10,000
Mortgage repayment = $20,000
Available-for-sale securities purchased = 10,000 increase
Bonds payable = 50,000 increase
Inventory = 40,000 increase
Accounts payable = 30,000 decrease
solution
we get here net cash from operating activities that is express as
net cash from operating activities = net income - inventory increase - accounts payable decrease .......................1
put here value
net cash from operating activities = $70,000 - $40,000 - $30,000
net cash from operating activities = $0
because
- Dividend payments, repayment (mortgage) and debt issuance (bond) financing activities. The purchase of debt or equity instruments (securities available for sale) is an investment activity.
- Operating Cash Flow Investing cash flow excludes this financing. Further, these factors do not affect net income. Consequently, net cash provided by operating activities can be determined by adjusting net income payable in inventory and accounts.
- To differentiate between the cost of goods sold (deducted from income) and cash payments to suppliers, a two-step adjustment is required. The change in inventory is the difference between the prices of goods sold and purchased.
- The difference between the amount payable to buyers and suppliers is the change in accounts payable. Accordingly, an increase in inventories and a reduction in accounts payable is required to change the cost of goods sold to cash paid to suppliers.
If the public holds money, supply does not change, however, bank reverse will decrease, option C is correct.
<h3>What is Money Supply?</h3>
In simple terms, it can be defined as the total amount or volume of money in public or the volume of money in possession of the public.
When the bank holds a large amount of money than the public, the money in circulation will decrease.
Learn more about Money Supply here:
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Answer:
12 years
Explanation:
The chilled water system lasts for in line with the building. To calculate break even useful life of chilled water we assume no salvage value. The company uses MARR of 6% . The conventional system costs $52,000 and annual operating cost is $15,000. We can calculated the useful life by adding the system cost and its operating cost with multiplying minimum acceptable rate of return.
$52,000 * A/P (6%, 10) + $15,000 = 12 years.
Answer:
True
Explanation:
Strategic management requires incorporation into a cohesive whole of all roles and activities of an organization. Management is described as the mechanism by which people within the organization are prepared, coordinated, guided and managed to use resources effectively to achieve the organizational objectives.
In the Weighted Average Cost of Capital (WACC) equation, the symbol <u>"Ke" </u>represents the costs of raising capital by issuing new stock.
The full WACC formula is below:
WACC Formula = (E/V * Ke) + (D/V) * Kd * (1 – Tax rate)
