Answer: -248.5
Explanation: The money a business has before paying its financial obligations is called unlevered cash flow. Example- Money in business left before interest payments and operating expenses is its unlevered cash flow.
It can be computed using following formula :-
UFCF = EBIT- TAXES+ DEPRICIATION - CAPITAL EXPENDITURE - INCREASE IN WORKING CAPITAL
putting the values into equation we have :-
UFCF = 18 - 27.5 - 239
= -248.5
Answer:
B. $0
Explanation:
he transaction between Lin and Zee appears to be a conditional sale. The reason being that zee hardware has the right to return the machine if unable to resell it. According to their agreement, should Zee hardware return the machine, its obligation to Lin will be zero.
As per Lin's assessment, and based on their previous transactions, the probability of Zee returning the machine is very high. Lin is sure that Zee hardware will not sell the machine. For this reason, Lin should not record the transactions as a sale.
Answer:
(B) Debit Depreciation expense and Credit Property Plant and Equipment
Explanation:
the depreciation is the accrued expense recognize for the effect on time on the firm's assets. There is no cash involve in a depreciation It is an accounting expense. So A and C cannot be coorect.
As the depreciation is an expense, it will be debited. not credited. so D is incorect as well.
The net income is a figure which resumes the expenses and revenues of the company. It is not an account thus, it can't be debited or credited. Making E incorrect as well.
