Answer:
$480,000
Explanation:
Data provided as per the question below:-
Net income = $380,000
Depreciation = $70,000
Decrease in accounts receivable = $30,000
The computation of cash provided by operating activities is shown below:-
= Net income + Depreciation + Decrease in accounts receivable
= $380,000 + $70,000 + $30,000
= $480,000
Therefore we applied the above formula.
Answer:
The company’s cash flows from operating activities was a cash inflow of $5,000
Explanation:
Cash at the end of the year = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities + Net cash inflows from operating activities
Therefore,
Net cash inflows from operating activities = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities - Cash at the end of the year = $340,000 + $40,000 + $45,000 - $420,000 = $5,000 >0
The company’s cash flows from operating activities was a cash inflow of $5,000
Answer:
$289000
Explanation:
Effective Gross Income (EGI): Effective Gross Income is calculated by deducting the Vacancy and collection (V&C) loss from Gross Potential Income (GPI).
First year gross potential income (PGI) is $340,000
Vacancy and collection (V&C) loss is 15% of gross potential income
Therefore, (V&C) allowance = [$340,000 15%]
= $51,000
Calculate Effective Gross Income (EGI) for the first year of operations:
Item
Amount
Potential gross income (PGI)
$340,000
Less: V&C allowance (at 15% of PGI)
($51,000)
Effective Gross Income ( EGI )
$289,000
Hence the EGI is $289,000
That is one way to approach the bull.
Answer:
Annual deposit= $37,714.37
Explanation:
Giving the following information:
The villa costs $500,000 today, and housing prices in Mexico are expected to increase by 6% per year. Manny and Irene want to make fifteen equal annual payments into an account, starting today, so there will be enough money to purchase the villa in fifteen years.
The account earns 10% per year.
First, we need to calculate the final value of the house with the following formula.
FV= PV*(1+i)^n
FV= 500,000*(1.06^15)=$1,198,279.1
Now, we can calculate the annual payments required:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,198,279.1*0.10)/[(1.10^15)-1]
A= $37,714.37
