option D is the correct answer - $254094
<u>Explanation:</u>
<u>As per the given data in the question, the following is used to calculate the net cash from the operating activities.
</u>
<u>Net Income = 265307
</u>
Add : Depreciation = 27888
Less Increase in Account receivable = (17637)
Less Increase in Closing stock = ($28123)
Add : Prepaid Expenses ( Decrease) = 2852
Less: Decrease in Accounts payable = (4066)
Add: Loss on sale of Asset ( not Operating in nature) = 7873
Therefore, the Net cash from operating activities = $254094
a fallacious argument would be one that is based on fallacies or disagreements
Answer:
Do = $2.00
D1= Do(1+g)1 = $2(1+0.2)1 = $2.40
D2= Do(1+g)2 = $2(1+0.2)2 = $2.88
D3= Do(1+g)3 = $2(1+0.2)3 = $3.456
D4= Do(1+g)4 = $2(1+0.2)4 = $4.1472
D5= Do(1+g)5 = $2(1+0.2)5 = $4.97664
PHASE 1
V1 = D1/1+ke + D2/(1+ke)2 + D3/(1+ke)3 +D4/(1+ke)4 + D5/(1+ke)5
V1 = 2.40/(1+0.15) + 2.88/(1+0.15)2 + 3.456/(1+0.15)3 + 4.1472/(1+0.15)4 + 4.97664/(1+0.15)5
V1 = $2.0870 + $2.1777 + $2.2723 + $2.3712 + $2.4742
V1 = $11.3824
PHASE 2
V2 = DN(1+g)/ (Ke-g )(1+k e)n
V2 = $4.97664(1+0.02)/(0.15-0.02)(1+0.02)5
V2 = $5.0762/0.1435
V2 = $35.3742
Po = V1 + V2
Po = $11.3824 + $35.3742
Po = $46.76
Explanation: This is a typical question on valuation of shares with two growth rate regimes. In the first phase, the value of the share would be obtained by capitalizing the dividend for each year by the cost of equity of the company. The dividend for year 1 to year 5 was obtained by subjecting the current dividend paid(Do) to growth rate. The growth rate In the first regime was 20%.
In the second phase, the value of shares would be calculated by taking cognizance of the second growth rate of 2%. In this phase, the last dividend paid in year 5 would be discounted at the appropriate discount rate after it has been adjusted for growth.
Answer:
A. $1,476 million.
Explanation:
Cash at beginning of the year + cash from operating activities + Cash from investing activities + cash from financing activities
Cash at beginning of the year + $1,504 -$973 -$875 = $1132
Cash at beginning of the year - $344 = $1132
Cash at the beginning of the year = $1132 + $344
Cash at the beginning of the year = $1,476 million
Answer:D. reject the offer because it will produce a net loss $21,000
Explanation:
Net income or loss is the total of firm's income less it's total cost( fixed and variable) . The contract will result in a loss $5 per unit which multiply by the total units of 4200 gives $21,000