Answer:
the free cash flow for the current year is zero.
Explanation:
Net income = $400; Net operating profit after taxes (NOPAT) = $500; Total assets = $2,000; and Total operating capital = $1700
Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,300; and Total operating capital = $2,100.
current year:
operating profit after taxes 700
Capital expenditures: 2,000 - 2,300 = (300)
working capital expeneses 1,700 - 2,100 = (400)
free cash flow: 0
As assets increase the company use cash to increase his assets
Also, the operating capital increase the comapny pa debts, extend his collection cycle or any other desition which, increases his cahs needs.
Therefore the free cash flow for the year is zero.
Answer:
journal entry are given below
Explanation:
given data
amount of interest = $150
solution
we know that as June 30 the interest earn company bank reconciliation is
$150
Therefore, it should be a cash debit and interest income should be deposited in the account as
journal entry are as June 30
Cash A/c $150 Dr.
To Interest revenue $150
record the interest revenue earned
Answer:
The correct answer is letter "B": Choice D.
Explanation:
Fixed costs are business expenses that do not change when production levels increase or decrease. These are one of two types of business expenses and the other is variable costs. Variable costs change with increases or decreases in production volume. Then:
1) <em>The wages paid to the taco makers and other employees</em> - Variable Costs
2) <em>Materials</em> (e.g., cheeses, salsa, tomatoes, lettuce, taco shells, etc.) <em>used to make the tacos</em> - Variable Costs
Answer:
A) $0
Explanation:
as per IRC section 101g, if the payment exceeds the greater of per actual cost then the excess payment amount will be taxable.
total tax free payment = 360*30
= $10,800
Therefore, The taxable amount is $0
Answer:
c. $86,000
Explanation:
The operating activities in the cash flow is the area where day to day business activities are recorded. This area mainly covers the cash incoming and outgoing due to regular business activities. The company paid dividends to its shareholders this will be considered as a financing activity as it is not of regular nature.
