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Rufina [12.5K]
2 years ago
15

Skysong, Inc. reported net income of $194,500 for 2020. Skysong also reported depreciation expense of $47,500 and a loss of $6,2

00 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $18,200 for the year, a $20,200 increase in accounts payable, and a $5,000 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method.
Business
1 answer:
Elza [17]2 years ago
8 0

Answer:

Net cashflow from operating activities =$271,400

Explanation:

<em>The cash flow statement is a financial statement that provides information about the sources and the usage of cash during a particular accounting period usually a year.</em>

It provides the cash inflow and outflows under three (3 ) categories of activities operating investing, financing.

The net operating activities section of the  cash flow is prepared below:

                                                                            $  

Net income                                                      194,500

Add Depreciation expense                             47,500

Add Loss on disposal                                       6,200

Add Decrease in account receivable             18,200

Add Increase in accounts payable                <u>  5,000</u>

Net cashflow from operating activities      <u>271,400  </u>

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A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves
BlackZzzverrR [31]

Answer:

$11.98

Explanation:

A share of common stock just made a dividend payment of $1.00

The expected long-run growth rate of for this stock is 5.4%

= 5.4/100

= 0.054

The investors required rate of return is 14.2%

= 14.2/100

= 0.142

The first step is to calculate the dividend year 1(D1)

D1= Do(1+g)

= 1(1+0.054)

= 1×1.054

= $1.054

Therefore, the stock price can be calculated as follows

Po= D1/(rs-g)

= 1.054/(0.142-0.054)

= 1.054/0.088

= $11.98

Hence the Stock price is $11.98

3 0
3 years ago
What do organisations need to consider when implementing best practice performance management systems?
kolbaska11 [484]

Answer:

Remember that performance review is NOT performance management. ...

Identify the purpose of managing performance. ...

Clarify the work to be done. ...

Set goals and establish a performance plan. ...

Conduct regular and frequent coaching. ...

Conduct a formal review of performance.

Explanation:

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7 0
2 years ago
A transfer payment is a payment made by a. firms, but not in exchange for capital equipment. b. foreigners, but not in exchange
s344n2d4d5 [400]

Transfer payment is a payment made by : Government, but not in exchange for a currently produced good or service.

<h3>What is transfer payment?</h3>

Transfer payment refers to a public expenditure, which is made purposely for unemployment compensation other than procuring goods or services.  It is money or other aid that is given by a government without any good or service in return.

Examples of transfer payments include:

  • Welfare
  • Financial aid
  • Social security
  • Government subsidies for certain businesses.

Hence, transfer payment is a payment made by government, but not in exchange for a currently produced good or service.

Learn more about transfer payment here: brainly.com/question/7176766

8 0
2 years ago
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under:________
omeli [17]

Answer:

b. investing activities

Explanation:

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.

Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.

<em>Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.</em>

4 0
3 years ago
A bond with 25 years to maturity, 7% coupon, quoted on a 6.25% basis is callable in 10 years at 103, 15 years at 102, and 20 yea
eduard

Answer: 10 years to call

Explanation:

Maturity period = 25 years

Coupon rate = 7%

6.25% basis is,

  • Callable in 10 years at 103
  • Callable in 15 years at 102
  • Callable in 20 years at par

This bond is considered as premium bond. Therefore, in case of premium bonds, Yield to call will be lower than the yield to maturity. Here, the question is which call date should be utilized. According to the rule of thumb, it states that always use the term that is nearest to the whole call date.

Hence, on the customer's confirmation, the dollar price quoted must be based on 10 years to call.

8 0
2 years ago
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