Homework Answers
Expected Cash Flows = Cash Flow Estimate * Probability Percentage
(a)
| Cash Flow Estimate ($) | Probability | Expected Cash Flow($) |
| 4880 | .20 | 976 |
| 6540 | .60 | 3924 |
| 7760 | .20 | 1552 |
| TOTAL | 6452 |
(b)
| 5620 | .30 | 1686 |
| 7200 | .60 | 4320 |
| 8550 | .10 | 855 |
| TOTAL EXPECTED CASH FLOWS ($) | 6861 |
(c)
| (1380) | .10 | (138) |
| 3100 | .70 | 2170 |
| 5240 | .20 | 1048 |
| TOTAL EXPECTED CASH FLOWS ($) | 3080 |
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The following information is available for Pharoah Company for 2022. Cash used to purchase treasury stock...
The following information is available for Pharoah Company for
2022.
Cash used to purchase
treasury stock
$ 82,251
Cash dividends paid
37,278
Cash paid for interest
38,304
Net income
793,953
Sales revenue
1,371,420
Cash paid for taxes
169,290
Cash received from
customers
968,031
Cash received from sale of
building (at book value)
337,896
Cash paid for operating
expenses
131,670
Beginning cash balance
18,810
Cash paid for goods and
services
477,261
Cash received from issuing
common stock
607,050
Cash paid to...
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Problem 12-7A
The following are the financial statements of Skysong, Inc..
Skysong, Inc.
Comparative Balance Sheets
December 31
Assets
2019
2018
Cash
$37,900
$20,300
Accounts receivable
32,200
18,800
Inventory
30,600
20,500
Equipment
59,400
77,100
Accumulated depreciation—equipment
(29,300
)
(23,200
)
Total
$130,800
$113,500
Liabilities and Stockholders’ Equity
Accounts payable
$28,300
$16,600
Income taxes payable
7,200
8,500
Bonds payable
27,500
33,900
Common stock
18,500
14,700
Retained earnings
49,300
39,800
Total
$130,800
$113,500
Skysong, Inc.
Income Statement
For the Year Ended December...
12
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11. A potential replacement machine, Machine New, is expected to produce the following real cash flows: Machine New Co -120 Cash Flows ($ thousands) C1 +110 C2 +121 C3 +133 The currently used machine, Machine Old, was purchased 5 years ago for $200,000 and produces an annual real cash flow of $80,000. It has no salvage value but is expected to last another 5 years. The company can replace Machine Old with Machine New either now or at the end...
Use Excel to calculate the expected present value of the
following cash flows using a 5% discount rate? Be prepared to
explain how you calculated your answer.
Year 1 Cash Flow Estimates $ 1,500 $ 2,000 $ 2,500 Probabiltiy of Estimate 10% 50% 40% Total Year 2 $ $ $ 3,300 3,600 4,000 15% 40% 45%
Relevant cash flow and timeline depiction For each of the following projects, determine the relevant cash flows, and depict the cash flows on a time line. a. A project that requires an initial investment of $121,000 and will generate annual operating cash inflows of $26,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $4,700 cash outflow. b. A new machine with an installed cost of $84,000. Sale of the old...
The following information is available for Pharoah Company for
2022.
Cash used to purchase
treasury stock
$ 82,251
Cash dividends paid
37,278
Cash paid for interest
38,304
Net income
793,953
Sales revenue
1,371,420
Cash paid for taxes
169,290
Cash received from
customers
968,031
Cash received from sale of
building (at book value)
337,896
Cash paid for operating
expenses
131,670
Beginning cash balance
18,810
Cash paid for goods and
services
477,261
Cash received from issuing
common stock
607,050
Cash paid to...
PLEASE DO NOT FORGET THE COMPUTE FREE CASH FLOW.
Exercise 12-08 a-b (Part Level Submission) Skysong, Inc.'s comparative balance sheets are presented below. Skysong, Inc. Comparative Balance Sheets December 31 2019 Cash $ 14,900 Accounts receivable 21,500 Land 19,700 Buildings 70,100 Accumulated depreciation-buildings (14,800) Total $111,400 2018 $ 10,400 23,400 25,900 70,100 (10,700) $119,100 Accounts payable Common stock Retained earnings Total $ 12,100 75,400 23,900 $111,400 $ 28,300 73,600 17,200 $119,100 Additional information: 1. Net income was $22,400. Dividends declared...
Problem 12-7A
The following are the financial statements of Skysong, Inc..
Skysong, Inc.
Comparative Balance Sheets
December 31
Assets
2019
2018
Cash
$37,900
$20,300
Accounts receivable
32,200
18,800
Inventory
30,600
20,500
Equipment
59,400
77,100
Accumulated depreciation—equipment
(29,300
)
(23,200
)
Total
$130,800
$113,500
Liabilities and Stockholders’ Equity
Accounts payable
$28,300
$16,600
Income taxes payable
7,200
8,500
Bonds payable
27,500
33,900
Common stock
18,500
14,700
Retained earnings
49,300
39,800
Total
$130,800
$113,500
Skysong, Inc.
Income Statement
For the Year Ended December...
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