Everytime, its a helpful skill especially throughout schools
Answer:
d. Gain on sale of land
Explanation:
When using the indirect method in calculating net cash flow from operating activities, the net income is adjusted by the following items :
- Non-Cash flow items included in net income
- Changes in Working Capital items in net income.
From the choices given only gain from sale on land which is an income, has to be removed from net income to reach a cash flow figure.
Answer:
c. Ml would decrease; there would be no change in M2
Explanation:
M1 is one of the narrowest definition of money supply, M1 is defined as the currency held by the public plus demand deposits or checkable deposits balances.
M2 is a wider definition of money stock than M1. It is important to note that M2 is a combination of m1 plus time deposits.
If Ann converts some of her checkable deposits into a certificate of deposit, this action will decrease the balance in M1 because checkable deposits is a component of M1. But M2 will not change because M2 is a composition of both M1 and time deposit (i.e. certificate of deposit), it will only means a reclassification within the same class.
Answer:
15.63%
Explanation:
Calculation to determine cost of equity
Using this formula
P = D/(r-g)
Where,
P=40
D=4.25
g=0.05
r=?
Let plug in the formula
Cost of equity=40 = 4.25/(r-0.05)
Cost of equity=r = (4.25/40)+0.05
Cost of equity=r =0.1063+0.05
Cost of equity=r =0.1563*100
Cost of equity = 15.63%
Therefore cost of equity is 15.63%
Hi there
Salvage value is not taken into consideration the law allows you to fully depreciation the entire cost of the asset.
So it's c