Answer:
$1,285,000
Explanation:
Initial cash flow is the amount of money paid out or received at the start of a project or investment.
The initial cash flow for the project is calculated as = $425,000 + $15,000 + $60,000 + $5,000 + $780,000 = $1,285,000.
Answer:
c.as a long-term asset on the balance sheet.
Explanation:
The inventory has come under the current asset as it is converted into cash within one year. Like other current assets i.e account receivable, prepaid insurance, etc contains high liquidity and they get converted into cash in less than one year
It also recorded at cost or market value whichever is lower plus it also chosen as cost flow consumption but it is not reported as a long term asset as it is classified as a current asset, not the long term asset
Answer:
The answers that apply are:
(B) The price for a hunting license is increased in an effort to reduce the number of hunters.
(C) A law is passed increasing the price of cigarettes in an effort to decrease secondhand smoke.
Explanation:
Hunting is a practice that governments are trying to control and decrease. So if government want to decrease the amount of people hunting they should increase the price of the licence.
Smoking is unhealthy, so the law increase the price for healthy reasons.
Answer:
$76.5 million
Explanation:
For computing the EBIT, first we have to do the following calculations
Free cash flow = Operating cash flow – Investment in operating capital
$39.1 million = Operating cash flow -$ 22.1million
So, operating cash flow is
= $39.1 million + $22.1 million
= $61.20 million
Now
Operating cash flow = EBIT – Taxes on EBIT + Depreciation expenses
$61.2 million = EBIT- $28.9 million + $13.6 million
So, the EBIT is
= $61.2 million + $28.9 million - $13.6 million
= $76.5 million