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2 years ago

The income statement of Pharoah Company is shown below.

Business

1 answer:

Alexus [3.1K]2 years ago

8 0

Answer and Explanation:

The preparation of the operating activities section of the statement of cash flows for the year ended December 31, 2020 is presented below;

Cash flow from operating activities

Net income $1,580,000

Add: depreciation expense $58,970

Add: decrease in account receivable $313,770

Less: Increase in prepaid expense -$167,640

Less: Decrease in account payable -$279,000

Less: decrease in accrued expense payable -$124,020

Add: Decrease in inventory $380,000 ($1,880,000 - $1,500,000)

Cash flow provided by operating activities $1,762,080

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The Red Bud Co. pays a constant dividend of $1.80 a share. The company announced today that it will continue to do this for anot

Naddika [18.5K]

Answer:

One share of this stock worth today if the required rate of return is 7.4 percent is $ 3.24

Explanation:

According to the details the dividend for the next 2 years = $1.80 a share and the required return is=7.40%.

Hence to calculate current price of stock we have to use the following formula:

current price= present value of future cash flows

current price=$1.80/1.074 + $1.80/1.074∧2

current price= $ 3.24

current price of stock is $ 3.24

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3 years ago

One of the benefits of contracting with celebrities to endorse the company's brand of athletic

scZoUnD [109]

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A celebrity tend to has huge followers. By making that celebrity endorse our product, we will increase our brand recognition in the market and increases our customers.</span>

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3 years ago

Suppose a worker in Peru can produce 11 lamps or 4 dressers in a day and a worker in Canada can produce 15 lamps or 6 dressers i

wolverine [178]

Answer:

4/11 and 6/15 dressers.

Explanation:

Absolute advantage is the ability of a country to produce more of a product given the same resources than another country per unit time. It also applies when a country is able to produce same amount of goods with another country given less inputs.

So a country that produces more goods uses a more efficient process to get more output.

In this scenario a worker in Peru can produce 11 lamps or 4 dressers in a day and a worker in Canada can produce 15 lamps or 6 dressers in a day. Canada has absolute advantage in producing lamps and dressers, so importing these items will not be beneficial.

To get a balance where both countries will benefit a lamp will have to go for a ratio of each countrie's product to the opportunity cost.

That is for Peru to produce 4 dressers it will have opportunity cost of 11 lamps. So the ratio is 4/11.

Also for Canada to produce 6 dressers it will have opportunity cost of 15 lamps. So the ratio is 6/15.

Lamp should trade for between 4/11 to 6/15 dressers for both countries to benefit.

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2 years ago

Which of the following is an example of irregular income? a) A full-time job b) A part-time job c) A graduation gift d) Both b a

alexandr402 [8]

Which of the following is an example of irregular income?
A. A full-time job
B. A part-time job
C. A graduation gift
D. Both b and c

The answer is C

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3 years ago

Read 2 more answers

Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc

Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

5 0

2 years ago