Answer:
cash provided by operating activities 84,000
Explanation:
net income 75,000
Adjustment (A)
gain on land (500)
depreciation 1,500
Adjusted net income 76,000
Change in working capital
↑account receivable (3,000) (B)
↓long term AR 10,000 (C)
↑Account payable 1,000 (D)
Net changes 8,000
cash provided by operating activities 84,000
<u>Notes:</u>
(A)
The net income may have non-monetary term, we need to remove those to get and adjusted net income on a cash basis
the gain on land is not a monetary term. We will record the proceeds in cash for the sale under investment activities, not operating as the business is not selling land every year.
depreciation is an accounting metric, is not an actual expense, it doesn't involve cash.
(B)
the increasein the Ar means more sales were not collected therefore, less cash collected.
(C)
the decrease in the long term AR represent the collection, so it increases the cash
(D)
the increase in account payable represent the delay of payment, so company has more cash available.
Answer:
a) Cash received = $183,350
b) Interest expense = $12,730
c) Carrying value = $186,010
Explanation:
As per the data given in the question,
a) Face value of bond = $190,000
Issued at =0.965
Cash received = $190,000 × 0.965
= $183,350
b) Discount on bonds payable = $190,000 - $183,350
=$6,650
Annual amortization of discount on bonds payable =$6,650÷5
= $1,330
Cash interest = $190,000×0.60
= $11,400
Interest expenses = $11,400+$1,330
= $12,730
c)
carrying value = $183,350 + ($1,330 × 2)
= $186,010
Answer:
Final Value= $18,253.12
Explanation:
Giving the following information:
For the next 6 years, you plan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly.
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= quarterly deposit= 600
n= 6*4= 24
i= 0.08/4= 0.02
FV= {600*[(1.02^24) - 1]}/ 0.02= $18,253.12
Answer:
The correct answer is the option B: This employee should be granted access based on his current and past roles only after being formally reviewed for his effectiveness in the company.
Explanation:
To begin with, if the employee has past through several positions before then he must understand quite a bit how the company works in its whole and moreover that employee must be trusted due to the fact of the times that he was promoted and therefore that he must have granted access based on his current and past roles but only after being formally reviewed because of the fact of ensuring the effectiveness of the employee.
Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold
If they meet their goal, let's see how that would go:
(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000
24,000 is the profit they would make for hitting their goal.
Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units
We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!
Question 2: If they increase their expenses by 16,000, what is their new break even point?
(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833
Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)
Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?
10% Reduction in price: 8
80-8 = 72
10% increase in sales: 200
2000 + 200 = 2200
Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000
Since this number is positive, this is income. (D)
