Answer:
Find explanations below:
Explanation:
It must be understood that cash flow does not necessarily imply profit or loss.
A company may have been experiencing positive cash flows due selling mostly on a cash basis, whereas the price charged is lower than cost of per unit,hence it would have high amount of cash, whereas the bottom-line is nothing to write home about.
The cash paid on retirement which is $411,000 would impact financing activities as an outflow.
The $3000 unamortized discount would be deducted from net income
Answer:
The firm's net income was $41,017.4375
Explanation:
The company has $16,500 of outstanding bonds that carry a 7.25% interest rate.
The interest expense of the company = $16,500 x 7.25% = $1,196.25
Income before tax = Sales - cost of goods sold - depreciation expense - interest expense = $150,000 - $75,500 - $10,200 - $1,196.25 = $63,103.75
Emery Mining Inc.'s income tax rate was 35%.
Tax = Income before tax x 35% = $63,103.75 x 35% = $22,086.3125
Net income = Income before tax - Tax = $63,103.75 - $22,086.3125 = $41,017.4375
Answer:
This question does not include what you are required to do. I looked it up on the web and it is asking for the Internal rate of return (IRR)
Explanation:
Internal rate of return used in project evaluations is the rate at which the NPV of a project equals to zero.
You can solve for IRR using a financial calculator and the cashflow "CF " function. Key in the following inputs;
Initial investment; CF0 = -54,000
Yr1 cashflow inflow ; C01 = 27,000
Yr2 cashflow inflow ; C02 = 25,000
Yr3 cashflow inflow ; C03 = 20,000
Then key in IRR then CPT = 16.792%
Therefore, the Internal rate of return(IRR) for this equipment is 16.79%
Answer:
1. 4%
2. 2%
Interest rates are rounded off to nearest whole number.
Explanation:
Fisher effect formula determines the relationship between the Nominal rate, Real rate and inflation rate.
Fisher effect formula is as follows
1 + nominal rate = ( 1 + real rate ) ( 1 + inflation rate )
1.
1 + 5% = ( 1 + real rate ) ( 1 + 1% )
1.05 = ( 1 + real rate ) x 1.01
1 + real rate = 1.05 / 1.01
1 + real rate = 1.0396
real interest = 1.0396 - 1 = 0.0396 = 3.96% = 4%
2.
Inflation premium = [ ( 1+ nominal rate ) / ( 1+ real rate ) ] -1
Inflation premium = [ ( 1+ 6% ) / ( 1+ 4% ) ] -1
Inflation premium = [ ( 1.06 / 1.04 ] -1
Inflation premium = 1.0192 - 1
Inflation premium = 0.0192
Inflation premium = 1.92%
Inflation premium = 2%
Answer:
all of the above
Explanation:
because it needs to be affordable safe and comfortable
