The cash flow for a company for their investment account is shown in the table below: Cash Year Cash Inflow Outflow $50,000 ($2.000) ($5,100) 3Q ($4,500) 3 $1,600 (36Q) 4 $0 $0 5 12Q ($8,500) 20Q ($4,500) 7 $7,500 ($6,500) 8 $0 (16Q) a. lf the value of Q is $2,750 at what interest rate will the net cash flow be balanced and equivalent? (Hint: at what interest rate per year NPW is equal to zero) b. If the interest rate is 6% per year compounded yearly, for what value of Q will| to the cash flow have equivalence? (Hint: for what value of Q. NPW is equal zero) 2.

The cash flow for a company for their investment account is shown in the table below: Cash Year Cash Inflow Outflow $50,000 ($2.000) ($5,100) 3Q ($4,500) 3 $1,600 (36Q) 4 $0 $0 5 12Q ($8,500) 20Q ($4,500) 7 $7,500 ($6,500) 8 $0 (16Q) a. lf the value of Q is $2,750 at what interest rate will the net cash flow be balanced and equivalent? (Hint: at what interest rate per year NPW is equal to zero) b. If the interest rate is 6% per year compounded yearly, for what value of Q will| to the cash flow have equivalence? (Hint: for what value of Q. NPW is equal zero) 2.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.19E

See similar textbooks

Similar questions

If beginning cash equaled $10,000 and ending cash equals $19,000, which is true? A. Operating cash flow 9,000; Investing cash flow (3,500); Financing cash flow (2,500) B. Operating cash flow 4,500; Investing cash flow 9,000; Financing cash flow (4,500) C. Operating cash flow 2,000; Investing cash flow (13,000); Financing cash flow 2,000 D. none of the above
Swasey Company earned net income of 1,800,000 in 20X2. Swasey provided the following information: Required: Compute the financing cash flows for the current year.
What is the amount of ending capital shown on the balance sheet for Floress Catering? a. 22,000 b. 20,000 c. 45,500 d. 32,800
The financial statements for Romeo and Company follow. Assume that the additional investment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 172,000
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
The following balance sheets and income statement were taken from the records of Rosie-Lee Company: Additional transactions were as follows: a. Sold equipment costing 21,600, with accumulated depreciation of 16,200, for 3,600. b. Issued bonds for 90,000 on December 31. c. Paid cash dividends of 36,000. d. Retired mortgage of 108,000 on December 31. Required: 1. Prepare a schedule of operating cash flows using (a) the indirect method and (b) the direct method. 2. Prepare a statement of cash flows using the indirect method.