Answer:
financing transaction.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, investing and financing activities.
A transaction can be defined as a business process which typically involves the interchange of goods, financial assets, services and money between a seller and a buyer.
Financing transaction can be defined as an obligation or right of an organization (business firm) to repurchase an asset for an amount greater than or equal to the selling price of the asset.
Answer:
a. 41.6 million
b. 42.28 million
Explanation:
The computations are shown below:
a. For the forecast for July month:
= Number of checks received in June × smoothing constant + (1 - smoothing constant) × forecast in June
= 40 million × 0.2 + (1 - 0.2) × 42 million
= 8 million + 33.6 million
= 41.6 million
b. For the forecast for August month:
= Number of checks received in July × smoothing constant + (1 - smoothing constant) × forecast in July
= 45 million × 0.2 + (1 - 0.2) × 41.6 million
= 9 million + 33.28 million
= 42.28 million
c. In this, the exponential method is used. But in the given situation we use linear forecasting method
Answer:
7.49%
Explanation:
n = Number of payment periods = 3
P = Total lease payment = Annual lease payment * Number of period = $20,700 * 3 = $62,100
FV = fair value of the machine = $50,000
Implicit rate = [($62,100 / $50,000)^(1 / 3)] - 1 = 0.0749, or 7.49%
