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IceJOKER [234]
2 years ago
15

Bryant Co. reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000

from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Business
1 answer:
OverLord2011 [107]2 years ago
7 0

Answer:

$26,000

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income

The computation of the cash flows from operations is shown below:

Cash flow from Operating activities  

Net income $20,000

Adjustments made:

Add: Depreciation expense $7,000

Less: Gain on sale of machinery - $3,000

Add: Loss from the retirement of notes $2,000

Net Cash flow from Operating activities $26,000

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If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain?
Mkey [24]

Answer: If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain? 4.82percent

Explanation:

Sustainable growth = {[$540 / ($3,000 + $1,700)] [$216 / $540]} / {1 {[$540 / ($3,000 + $1,700)] [$216 / $540]}} = .04817 = 4.82 percent

5 0
1 year ago
Which two of these are essential for completing an initial mortgage loan application?
Vitek1552 [10]

*Your name.

*Your income.

*Your Social Security number (so the lender can check your credit)

*The address of the home you plan to purchase or refinance.

*An estimate of the home's value.

*The loan amount you want to borrow.

4 0
1 year ago
Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2015. Exactly 6 months later, the A
Pachacha [2.7K]

Answer:

C) ABC 5% and DEF 5.7%

Explanation:

Data provided in the question:

Purchasing Cost of Stock ABC purchased = $40 per share

Purchasing Cost of Stock DEF purchased = $35 per share

Time = 6 months

Selling price of share of ABC = $42 per share

Selling price of DEF share = $36

Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months

Thus,

Total dividend paid to DEF = $0.5 × 2

= $1

Now,

For ABC

Total return = Selling price - Purchasing Cost

= $42 - $40

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $40 ] × 100%

= 5%

For DEF

Total return = Selling price + Dividend received - Purchasing Cost

= $36 + $1 - $35

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $35 ] × 100%

= 5.7%

Hence,

option C) ABC 5% and DEF 5.7%.

7 0
1 year ago
To survive and​ prosper, a business must gain and sustain​ ______ major competitive advantages over rival firms. A. as many as o
zloy xaker [14]

Answer:

C. <u>at least several</u>

Explanation:

Competitive advantage refers to a favorable situation or position a business enjoys over it's competitors owing to it's specialization or strength in performing a specific operation.

For example, in case of telecommunication, one company's competitive advantage could be superior network coverage with lower call drops than it's competitors.

In order to survive and grow, a business should try and gain competitive advantages in at least several fields and yet at the same time retain and maintain those competitive advantages over a period.

4 0
1 year ago
Which of the following statements concerning a process cost accounting system is false? A. The units in beginning inventory plus
Hitman42 [59]

Answer: The statement "A. The units in beginning inventory plus the units transferred out during the month should equal the units in the ending inventory plus the units transferred in during the month." is <u>FALSE.</u>

Explanation: The units in beginning inventory plus the units<u> </u><u>transferred in</u> during the month <u>MUST be equal</u> the units in the ending inventory plus the units <u>transferred out during</u> the month.

3 0
1 year ago
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