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Sav [38]
3 years ago
11

Rachel's Recordings reported net income of $280,000. Beginning balances in accounts receivable and accounts payable were $15,000

and $22,000 respectively. Ending balances in these accounts were $11,500 and $28,000, respectively. Assuming that all relevant information has been presented, Rachel's cash flows from operating activities would be:___________.
a. $283,500.
b. $270,500.
c. $289,500.
d. $280,000.
Business
1 answer:
saul85 [17]3 years ago
3 0

Answer: c. $289,500

Explanation:

Operating Activity Cashflows = Net Income + Decrease in Accounts receivable + Increase in Accounts payable

= 280,000 + (15,000 - 11,500) + (28,000 - 22,000)

= 280,000 + 3,500 + 6,000

= 289,500

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Parker owned all of Odom Inc. Although the Investment in Odom Inc. account had a balance of $834,000, the subsidiary's 12,000 sh
Lorico [155]

Answer:

$128,400

Explanation:

Account balance $ 834,000,

Subsidiary's 12,000 at $56 per share. Odom Issued 3,000 at $70 per share

$ 56 X 12,000 = $672,000

$ 672,000+ $70 X 3,000 = $ 882,000

$ 882,000 X .80 = $ 705,600

$ 705,600 – $ 834,000 Investment Account Balance = $128,400

Therefore Reduction in Investment Account is $128,400

The Transaction affect the Investment in Odom inc account because their is reduction in the investment Account from $834,000 to $128,400

3 0
3 years ago
The company estimates that it can issue debt at a rate of rd = 9%, and its tax rate is 40%. It can issue preferred stock that pa
klio [65]

Answer:

a)

Cost of debt (after tax) = 5.4%

Cost of preferred stock (r_p)  = 10.53%

Cost of common stock (r_e) = 16.18%

b)

WACC = 14%

c)

project 1 and project 2

Explanation:

Given that:

Debt rate (r_d) = 9% = 0.09

Tax rate (T) = 40% = 0.4

Dividend per share (D_p) = $6

Price per share (P_p) = $57

Common stock price (P_0)= $39

Expected dividend (D_1) = $4.75

Growth rate (g) = 4% = 0.04

The target capital structure consists of 75% common stock (w_e), 15% debt (w_d), and 10% preferred stock  (w_p)

a)

Cost of debt (after tax) =`r_d(1-T)= 0.09(1-0.4)=0.09*0.6=0.054

Cost of debt (after tax) = 5.4%

Cost of preferred stock (r_p) = \frac{D_p}{P_P}=\frac{6}{57}=0.1053 = 10.53%

r_p = 10.53%

Cost of common stock (r_e) = \frac{D_1}{P_0} +g=\frac{4.75}{39} +0.04=0.1618

r_e = 16.18%

b)

WACC=w_dr_d(1-T)+w_er_e+w_pr_p\\WACC=0.15*0.09(1-0.4)+0.75*0.1618+0.1*0.1053=0.14

WACC = 14%

c) Only projects with expected returns that exceed WACC will be accepted. Therefore only project 1 and project 2 would be accepted

4 0
3 years ago
In a criminal tax case, Darth Vader was charged with several counts of tax evasion and filing a false income tax return, stemmin
Vitek1552 [10]

Answer:

<em>Darth's response is not adequate as he has systemically illegitimately manipulated the Jedi's assets to evade taxes. Therefore all those funds in question will be taken into account when measuring Jedi's taxable income. </em>

It can be inferred after that that that the Jedi has some existing gain / retained earnings or not.

<em>When Darth considers himself guilty, he shall be liable for charges of fine, reward and prosecution under sec.7201.</em>

<em></em>

7 0
3 years ago
1. Exhibit 1.1; USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Ulleksa [173]
A. 4.8%
B. 1.04%
C. 13.6%
D. 11.5%

A. 9%
B. 3.53%
C. 5.3%
D. 11.1%
8 0
3 years ago
surfshack corp. buys surfboards, wetsuits, and surf wax from rip to shreds, inc. for sale to consumers. what type of company is
viva [34]

Buys surfboards, wetsuits, and surf wax from rip to shreds, inc. for sale to consumers. The type of company is surf shack corp is a retail merchandiser.

Merchandising is any practice that contributes to the sale of products to retail consumers. At the retail level, merchandising refers to the presentation of products that are sold in creative ways that induce customers to purchase more items or products.

Retail store clerks are responsible for ensuring that appropriate quantities of merchandise are available in stores and sold at appropriate prices. Clever planning, careful purchases, and smart advertising campaigns can increase your profits.

Merchandisers keep merchandise on retail shelves and present it appropriately to customers. They also track inventory levels, report problems and shortages to management, and clean up unwanted items for blatant violations of store decor.

Learn more about retail merchandiser brainly.com/question/7145120

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6 0
1 year ago
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