Answer:
The correct answer is e. -$4,940.
Explanation:
This problem requires us to calculate the amount of the cash flow to creditors. The cash flow to creditor means all payment made to creditors in form of interest payment or principal payment. The amount borrowed is deducted from it. The detail calculation is given below.
Interest = Earning before interest and taxes - Net income - Taxes
Interest = 27,130 - 16,220 - 5,450
Interest = $ 5,460
Cash flow to creditors = 31,600 + 5,460 - 42,000 = -$ 4,940
Answer:
PV of Perpetuity = $5000
Explanation:
A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,
PV of Perpetuity = Cash Flow / r
Where,
- r is the required rate of return
PV of Perpetuity = 250 / 0.05
PV of Perpetuity = $5000
Answer:
$26.67 million
Explanation:
The computation of price per share is shown below:-
Total market value = $1,150 million + $120 million
= $1,270 million
Market value of equity = Total market value - value of debt - value of preferred stock
= $1,270 million - ($120 million + $300 million + $50 million)
= $1,270 million - $470 million
= $800 million
Price per share = Market value of equity ÷ Stock outstanding
= $800 million ÷ $30 million
= $26.67 million
Answer:
Are an alternative to new ventures.
Explanation:
Joint ventures is a business arrangement between two of more organisations to form a partnership. The oganisations involved share ownership, profits, investments.
A joint venture provides access to a large number of resources and it also provides the opportunity to gain new insight and expertise.
Different organizations enter into joint venture for either the purpose of a production process or research avtivity.
Answer:
Oak Interiors
Matching each account number with its most likely account in the list:
12 - Cash
13 - Accounts Receivable
17 - Land
21 - Accounts Payable
31 - Fred Biggs, Capital
32 - Fred Biggs, Drawing
41 - Fees Earned
51 - Supplies Expense
52 - Wages Expense
53 - Miscellaneous Expense
Explanation:
a) Data and Classifications:
Digits and Accounts:
1—assets
12 - Cash
13 - Accounts Receivable
17 - Land
2—liabilities
21 - Accounts Payable
3—owner’s equity
31 - Fred Biggs, Capital
32 - Fred Biggs, Drawing
4—revenues
41 - Fees Earned
5—expenses
51 - Supplies Expense
52 - Wages Expense
53 - Miscellaneous Expense
b) The chart of accounts of Oak Interiors is where the financial accounting is organized into five major categories. These categories are called accounts. They include assets, liabilities, equity, revenue, and expenses. This implies that all business transactions that are recorded in accounts are summarized under any of these five major headings.