Answer:
Option (c) is correct.
Explanation:
Net cash provided by operating activities:
= Net income + Depreciation + loss on sale of Equipment + Decrease in prepaid expense + Increase in account payable - Increase in account receivable - increase in inventory - Decrease in accrued expenses
= $132,000 + 44,000 + 8,000 + 60,000 + 52,000 - 60,000 - 100,000 - 24,000
= $112,000
Note:
The balance sheet is missing in this question, so I attached the balance sheet with the answer.
Answer:
$248,000
Explanation:
Given that 20% of sales are for cash, Of the credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month. It means that credit sales is 80% of sales.
Cash collection for January will include 20% sales in January, 8% (10% * 80%) sales in January, 24% (30% *80%) sale in December and 48% (60% * 80%) of sales in November.
The forecasted amount of total CASH COLLECTIONS FROM SALES in January
= 20% * $200,000 + 8% * $200,000 + 24% * $400,000 + 48% * $200,000
= $40,000 + $16,000 + $96,000 + $96,000
= $248,000
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Answer:
The depreciation cost of the bus per unit is $ 1.4 which is purchased on January 1, 2019.
Explanation:
The depreciation cost per unit is computed as:
Depreciable asset = Cost - Salvage Value
= $205,860 - $7,900
= $197,960
Depreciation per unit = Depreciable asset /Useful life expected value
= $197,960 / 141,400
= $1.4
Therefore, the per unit cost is $1.4
Answer:
d. explicit forecast period and a terminal value
Explanation:
The concept involves giving the current values to the expected future cash flows of a project. Discounted cash flows seek to assign a present value to the projected future income of a company. The discount cash flow techniques use an appropriate discount rate in evaluating forecasted revenues.
Discounted cash flow valuation methods are used in capital budgeting. They are decision-making tools that help managers and shareholders determine whether to invest in a project or not. Discounted future revenues communicate the profitability potential of a project.
