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siniylev [52]
3 years ago
9

Fox, Inc. reported net income of $300,000 for the current. Changes occurred in several balance sheet accounts as follows: Equipm

ent $25,000 increase Accumulated depreciation 10,000 decrease Note payable 30,000 increase Additional current year information: • During the year, Fox received $20,000 for the sale of equipment costing $80,000 that was 80% depreciated. • In December, Fox purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000. In Fox's statement of cash flows for the year, net cash provided by operating activities should be_______________.
Business
2 answers:
elena-s [515]3 years ago
8 0

Answer:

After making calculations it must count to 329 600

Explanation:

You have to find out what the Cash would be if non-cash transactions did not affect it:

Net income 300 000

Add finance cost 3 600

(30 000*12%)

Less depreciation 10 000

(normally, you have to add the depreciation back, but in the problem it is decreased meaning depreciation amount was decreased, so you have to deduct instead of adding it. )

Add note payables 30 000

Less profit from sales 4 000

(20 000-(80000-(80000*80%))

As for purchase of equipment, this refers to Investment activity.

Len [333]3 years ago
5 0

Answer:

Cash flow from operating activities = 296, 000

The cashflow from operating activities does not include cash flows related to investing and financing activities. So while calculating Cash flow from operatin g activities we will exclude interest expense, include depreciation and exclude profit on diposal of equipment. Calculations are given below.

Net Income            = 300,000

Add interest expense = 300 (30,000*12/12)

(it is related to financing activities)

Less profit on disposal = (4000)

(20000-16000)

So Cash flow from operating activities = 296, 000

*NO information about depreciation charge.

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You are given the following information for Lightning Power Co. Assume the company's tax rate is 35 percent.
olga55 [171]

Answer:

The company's WACC is 9.14%

Explanation:

cost of preferred stock

= (dividend on preferred stock)/(current market price)

= [$100*4%]/$72

= 5.56%

total finance = debt + equity + preferred stock

                     = (8,000*$1,060) + (310,000*$57) + (15,000*$72)

                     = $8,480,000 + $17,670,000 + $1,080,000

                      = $27,230,000

weight of debt = debt/total finance

                         = $8,480,000/$27,230,000

                         = 0.31

weight on equity = equity/total finace

                             = $1.080.000/$27,230,000

                             = 0.04

WACC

= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)

= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)

= 9.14%

Therefore, The company's WACC is 9.14%

5 0
3 years ago
Airlines that offer lower fares on seats shortly before a flight's departure date to fill empty seats are utilizing---------- wh
Gelneren [198K]

Airlines that offer lower fares on seats shortly before a flight's departure date to fill empty seats are utilizing dynamic strategy which is a form of dynamic pricing. Real-time pricing, often known as dynamic pricing, is a highly adaptable method of determining a product's or service's price.

Dynamic pricing aims to enable businesses who offer products or services online to quickly modify prices in response to consumer demand. A pricing approach called "dynamic pricing" substitutes variable prices for fixed ones.

The fundamental tenet of the dynamic pricing model is to provide the same product to various customer segments at various costs. According to the number of individuals interested in particular products, dynamic pricing is a means to reflect changes and boost revenue .

To learn more about Dynamic pricing , click here

brainly.com/question/6481084

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8 0
1 year ago
The _____ is a financial statement that reports the revenues, expenses, and net income or loss that resulted from a firm’s opera
suter [353]

The Income Statement is a financial statement that reports the revenues, expenses, and net income or loss that resulted from a firm’s operations over an accounting period.

<u>Explanation:</u>

The Income Statement is one of the company’s center financial reports that confers their gain and loss over a remarkable time. The gain or loss is circumscribed by practicing all revenues and deducting all liabilities from both working and non-operating exercises.

The income statement is a vital element of a company’s execution reports that need to be yielded to the Securities and Exchange Commission (SEC). An income statement presents worthy insights into a company’s operations, the performance of its management, underperforming areas and its production applicable to industry rivals.

7 0
3 years ago
Assume that Lucas's marginal tax rate is 32 percent and his tax rate on dividends is 16 percent. If a dividend-paying stock (wit
kipiarov [429]

Answer:

The correct answer to the problem is 7.728%

Explanation:

Lucas marginal tax rate = 32 percent

Tax rate on dividends = 16 percent

Dividend yield of a dividend-paying stock (with no growth potential) = 9.20 percent.

To determine the interest rate a municipal bond have to offer for Lucas to be indifferent between the two investments from a cash flow perspective =

Dividend yield multiplied by ( 1- tax rate on dividends)

= 9.20% × (1 - 16%)

= 0.092 × (1 - 0.16)

= 0.092 × 0.84

= 7.728%

3 0
3 years ago
The follow passage describes how a catalytic converter in a car works. The catalytic converter mostly likely was developed in re
Mashcka [7]

Answer:

Its A

Explanation:

Its A

5 0
2 years ago
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