Homework Answers
Current asset involve cash , account receivables and inventory so the option 1 and 4 is correct. Because firm cash flow is affected by inventory requirements and account receivables which will impact the cash requirements and eventually impact the cash flow.
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Why does a change in current assets during the year affect a firm's cash flow for...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover....
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin × Asset turnover. 33.If your employer declares bankruptcy, this can have a major effect on your pension if you are in a Either plan B) Defined Benefit Plan C) Neither Plan D) Defined Contribution Plan 37If you put $200 into a savings account that pays annual compound interest of 8% per year and then...
Please help me to answer this question. 1. The ratio of ________ to ________ is an indicator of the quality of a firm's earnings. a. cash flow from operations, net income b. liabilities, assets c....
Please help me to answer this question. 1. The ratio of ________ to ________ is an indicator of the quality of a firm's earnings. a. cash flow from operations, net income b. liabilities, assets c. dividends, interest expense d. cash flow from operations, capital expenditures 2. As the number of monthly payments on a loan increases, the size of each payment ________ and the total interest paid over the life of the loan ________. a. increases, decreases b. decreases, stays...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin × Asset turnover. 33.If your employer declares bankruptcy, this can have a major effect on your pension if you are in a Either plan B) Defined Benefit Plan C) Neither Plan D) Defined Contribution Plan 37If you put $200 into a savings account that pays annual compound interest of 8% per year and then...
1. Return on Assets measures a firm's: a. profitable use of its assets b. use...
1. Return on Assets measures a firm's: a. profitable use of its assets b. use of financial leverage c. return on shareholders investment d. profitability of sales e. cost effectiveness of its operating activities 2. The Current ratio of a firm is 1.3, If the firm uses cash to pay short-term notes-payable, would the transaction increase or decrease the current ratio and Return on Asset ratio? 3. Which of the following could cause return on equity to increase, all...
What is the firm's cash flow from financing? Category Prior Year Current Year Accounts payable 3,124.00...
What is the firm's cash flow from financing?
Category Prior Year Current Year Accounts payable 3,124.00 5,920.00 Accounts receivable 6,941.00 9,046.00 Accruals 5,601.00 6,064.00 Additional paid in capital 19,563.00 13,048.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,755.00 18,209.00 Current portion long-term debt 500 500 Depreciation expense 968.00 1,020.00 Interest expense 1,265.00 1,125.00 Inventories 3,050.00 6,718.00 Long-term debt 16,987.00 22,517.00 Net fixed assets 75,773.00 74,196.00 Notes payable 4,052.00 6,554.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,927.00 34,634.00...
Depreciation and accounting cash flow
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $180,000 and has a 5-year MACRS recovery period, has gathered the following data relative to the current year's operations. Accruals$ 15,000Current assets120,000Interest expense15,000Sales revenue400,000Inventory70,000Total costs before depreciation, interest, and taxes290,000Tax rate on ordinary income40%a. Use the relevant data to determine the operating cash flow (see Equations 4.2 and 4.3) for the current year. b. Explain the impact that depreciation, as well as any other...
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset,...
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $ 187,000 and has a 5-year MACRS recovery period , has gathered the following data relative to the current year's operations: Accruals $ 15,600 Current assets 119,000 Interest expense 15,900 Sales revenue 414,000 Inventory 70,500 Total costs before depreciation, interest and taxes 285,000 Tax rate on ordinary income 21 % a. Use the relevant data to determine the operating cash flow...
Huluduey Corporation’s comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year...
Huluduey Corporation’s comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $33,340 $27,830 Inventory 18,140 15,290 Accounts payable 15,680 13,780 Dividends payable 52,490 49,220 Adjust net income of $198,140 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to...
P10-11 Calculating Project Cash Flow from Assets [LO Summer Tyme, Inc., is considering a new 3-year...
P10-11 Calculating Project Cash Flow from Assets [LO Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.724 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value (salvage value) of $445,200. The project requires an initial investment in net working capital of $636,000. The project is estimated to generate $5,088,000 in annual sales, with costs of...
What is the firm's cash flow from operations? Prior year Current year Item Accounts payable 7,840.00...
What is the firm's cash flow from operations?
Prior year Current year Item Accounts payable 7,840.00 8,18.00 Accounts receivable 6,015.00 6,718.00 1,042.00 Accruals 1,592.00 ??? ??? Cash Common Stock 10,682.00 11,749.00 COGS 18,221.00 12,698.00 Current portion long-term debt 4,999.00 4,926.00 Depreciation expense 2,500 2,795.00 Interest expense 733 417 Inventories 4,796.00 4,106.00 Long-term debt 14,727.00 14,371.00 Net fixed assets 54,111.00 50,739.00 Notes payable 9,919.00 4,307.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,826.00 29,842.00 Sales 35,119 46,666.00 2,084 Taxes 2,775
What is the firm's cash flow from financing?
Category Prior Year Current Year Accounts payable 3,124.00 5,920.00 Accounts receivable 6,941.00 9,046.00 Accruals 5,601.00 6,064.00 Additional paid in capital 19,563.00 13,048.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,755.00 18,209.00 Current portion long-term debt 500 500 Depreciation expense 968.00 1,020.00 Interest expense 1,265.00 1,125.00 Inventories 3,050.00 6,718.00 Long-term debt 16,987.00 22,517.00 Net fixed assets 75,773.00 74,196.00 Notes payable 4,052.00 6,554.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,927.00 34,634.00...
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $180,000 and has a 5-year MACRS recovery period, has gathered the following data relative to the current year's operations. Accruals$ 15,000Current assets120,000Interest expense15,000Sales revenue400,000Inventory70,000Total costs before depreciation, interest, and taxes290,000Tax rate on ordinary income40%a. Use the relevant data to determine the operating cash flow (see Equations 4.2 and 4.3) for the current year. b. Explain the impact that depreciation, as well as any other...
P10-11 Calculating Project Cash Flow from Assets [LO Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.724 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value (salvage value) of $445,200. The project requires an initial investment in net working capital of $636,000. The project is estimated to generate $5,088,000 in annual sales, with costs of...
What is the firm's cash flow from operations?
Prior year Current year Item Accounts payable 7,840.00 8,18.00 Accounts receivable 6,015.00 6,718.00 1,042.00 Accruals 1,592.00 ??? ??? Cash Common Stock 10,682.00 11,749.00 COGS 18,221.00 12,698.00 Current portion long-term debt 4,999.00 4,926.00 Depreciation expense 2,500 2,795.00 Interest expense 733 417 Inventories 4,796.00 4,106.00 Long-term debt 14,727.00 14,371.00 Net fixed assets 54,111.00 50,739.00 Notes payable 9,919.00 4,307.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,826.00 29,842.00 Sales 35,119 46,666.00 2,084 Taxes 2,775
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