Answer:
$95,000
Explanation:
The computation of the free cash flow is shown below:
= Operating activities - capital expenditure - dividend paid
= $140,000 - $35,000 - $10,000
= $95,000
The dividend is also a part of the capital expenditure, that's why we deduct it.
The notes payable is already included in the operating activity, so no treatment is done, and the additional shares are also not be considered in the computation part. Hence, ignored it.
Examples of current liabilities include:
1. accounts payable
2. taxes
3. Interest payable
4. Accrued expenses.
Current liabilities are those expenses due within 12 months or less. All other liabilities are reported as long-term liabilities. For a business, they must have enough current assets (cash, sales) to cover current liabilities.
Answer:
Option C.
Dr Insurance Expense $2,100
Cr Prepaid Insurance $2,100
Explanation:
The initial payment of $12,600 is for 6 months which means monthly charge of insurance is $2,100 ($12,600 / 6 months). The initial prepaid expense was recorded as under:
Dr Prepaid Insurance $2,100
Cr Cash Account $2,100
At the end of each month, the insurance expense is recognized and the entry is as under:
Dr Insurance Expense $2,100
Cr Prepaid Insurance $2,100
Answer:
$21,435.74
Explanation:
Marko will pay as much as the discounted present value of the cash flow:
Maturity $5,000.00
time 1.00
rate 0.14000
PV 4,385.9649
Maturity $9,000.00
time 2.00
rate 0.14000
PV 6,925.2078
Maturity $15,000.00
time 3.00
rate 0.14000
PV 10,124.5727
We add them together and get the total price for ABC Co
![\left[\begin{array}{ccc}#&Cashflow&Discounted\\&&\\1&5000&4385.96\\2&9000&6925.21\\3&15000&10124.57\\&total&21435.74\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7D%23%26Cashflow%26Discounted%5C%5C%26%26%5C%5C1%265000%264385.96%5C%5C2%269000%266925.21%5C%5C3%2615000%2610124.57%5C%5C%26total%2621435.74%5C%5C%5Cend%7Barray%7D%5Cright%5D)
