ZZZZZZ had net current assets of P2,000,000 at the end of 2022 and P1,800,000 at the end of 2021. In addition, ZZZZZZ had net spontaneous current liabilities of P1,000,000 in 2022 and P1,500,000 in 2021. Using this information, ZZZZZZ net current asset investment for 2022 was 2. At the beginning of the year, KKKKK had P100,000 in cash. The company undertook a major expansion during this same year. Looking at its statement of cash flows, you see that the net cash provided by its operations was P300,000 and the company’s investing activities required cash expenditures of P800,000. The company’s cash position at the end of the year was P50,000. What was the net cash provided by the company’s financing activities? 3. An analyst has collected the following information regarding

ZZZZZZ had net current assets of P2,000,000 at the end of 2022 and P1,800,000 at the end of 2021. In addition, ZZZZZZ had net spontaneous current liabilities of P1,000,000 in 2022 and P1,500,000 in 2021. Using this information, ZZZZZZ net current asset investment for 2022 was 2. At the beginning of the year, KKKKK had P100,000 in cash. The company undertook a major expansion during this same year. Looking at its statement of cash flows, you see that the net cash provided by its operations was P300,000 and the company’s investing activities required cash expenditures of P800,000. The company’s cash position at the end of the year was P50,000. What was the net cash provided by the company’s financing activities? 3. An analyst has collected the following information regarding

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 17P: Athenian Venues Inc. just reported the following selected portion of its financial statements for...

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National Corporation had net current assets of P2,500,000 at the end of 2022 and P1,800,000 at the end of 2021. In addition, National Co. had net spontaneous current liabilities of P1,500,000 in 2022 and P1,300,000 in 2021. Using this information, National Co.'s net current asset investment for 2022 was
Samuel Corporation had net current assets of P2,500,000 at the end of 2022 and P1,800,000 at the end of 2021. In addition, Samuel Co. had net spontaneous current liabilities of P1,500,000 in 2022 and P1,300,000 in 2021. Using this information, Samuel Co.'s net current asset investment for 2022 was?
Music Corporation had current assets of P2,000,000 at the end of 2020 and P1,800,000 at the end of 2019. In addition, Music had current liabilities of P1,000,000 in 2020 and P1,500,000 in 2019. Using this information, Music’s net current asset investment for 2020 was P700,000 P(300,000) P300,000 P(700,000)
The balance of the investment account at December 31,2021 is: a. P5,924,000b. P5,000,000c. P5,744,000d. P7,660,000
Suppose that the date is 1 January 2022, and you are considering making an investment in General Electric (NYSE: GE). You are given the following information and assumptions to assist you with your valuation analysis: FY2022 revenue (i.e., for the 12-month period from 1 January 2022 to 31 December 2022) is forecast to be $80 billion, compared to actual FY2021 revenue of $75 billion. EBIT, depreciation & amortization (D&A) and capital expenditure dedicated solely for new investments/projects (i.e., growth capital expenditure) is expected to remain fixed (as a percentage of total revenues) at 15%, 5% and 3% respectively. The level of operating working capital needed for GE’s ordinary business operations historically as well as in the future is equal to 1% of total revenues. GE currently has $75 billion in debt outstanding, $40 billion in cash on hand and 9 billion shares outstanding. Assume that GE faces an effective corporate tax rate of 25%. Assume that GE’s long-term…
The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of 2020. The firm’s weighted average cost of capital is 8%. Data for each project are as follows: Black White Cost of investment—end 2020 25,000 Cost of investment—end 2020 $43,000 Cash inflow—2021 8,000 Cash inflow—2021 20,000 Cash inflow—2022 8,000 Cash inflow—2022 30,000 Cash inflow—2023 8,000 Cash inflow—2023 10,000 Cash inflow—2024 8,000 Cash inflow—2024 0 Cash inflow—2025 8,000 Cash inflow—2025 0 Requirements: Compute the net present value for each asset using Excel's NPV function. Determine which project the Riverside Company should invest in based on NPV. Compute the profitability index for each project. Determine which project the Riverside Company should invest in based on the profitability index. Should the firm invest in the Black or White project? What is the basis for your choice?…
The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of 2020. The firm’s weighted average cost of capital is 8%. Data for each project are as follows: Black White Cost of investment—end 2020 25,000 Cost of investment—end 2020 $43,000 Cash inflow—2021 8,000 Cash inflow—2021 20,000 Cash inflow—2022 8,000 Cash inflow—2022 30,000 Cash inflow—2023 8,000 Cash inflow—2023 10,000 Cash inflow—2024 8,000 Cash inflow—2024 0 Cash inflow—2025 8,000 Cash inflow—2025 0 Requirements: Determine which project the Riverside Company should invest in based on the profitability index. Should the firm invest in the Black or White project? What is the basis for your choice?
The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of 2020. The firm’s weighted average cost of capital is 8%. Data for each project are as follows: Black White Cost of investment—end 2020 25,000 Cost of investment—end 2020 $43,000 Cash inflow—2021 8,000 Cash inflow—2021 20,000 Cash inflow—2022 8,000 Cash inflow—2022 30,000 Cash inflow—2023 8,000 Cash inflow—2023 10,000 Cash inflow—2024 8,000 Cash inflow—2024 0 Cash inflow—2025 8,000 Cash inflow—2025 0 Requirements: Compute the net present value for each asset using Excel's NPV function. Determine which project the Riverside Company should invest in based on NPV. Compute the profitability index for each project. Determine which project the Riverside Company should invest in based on the profitability index. Should the firm invest in the Black or White project? What is the basis for your choice?
Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2019, to June 30, 2020 Expenditures on project: 2019: January 1 $ 456,000 May 1 417,000 October 1 648,000 2020: March 1 1,512,000 June 30 708,000 Amounts borrowed and outstanding: $1.7 million borrowed at 10%, specifically for the project $7 million borrowed on July 1, 2018, at 12% $14 million borrowed on January 1, 2017, at 6% Required: Note: Round all final numeric answers to two decimal places. Compute the amount of interest costs capitalized each year. Capitalized interest, 2019 $___________________ Capitalized interest, 2020 $___________________ If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2020. $________________
Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2019, to June 30, 2020 Expenditures on project: 2019: January 1 $ 504,000 May 1 405,000 October 1 504,000 2020: March 1 1,392,000 June 30 540,000 Amounts borrowed and outstanding: $1.6 million borrowed at 10%, specifically for the project $6 million borrowed on July 1, 2018, at 12% $13 million borrowed on January 1, 2017, at 6% Instructions: Note: Round all final numeric answers to two decimal places. Compute the amount of interest costs capitalized each year. Capitalized interest, 2019 $ fill in the blank 1 Capitalized interest, 2020 $ fill in the blank 2 If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2020. $ fill in the blank 3
Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2019, to June 30, 2020 Expenditures on project: 2019: January 1 $ 456,000 May 1 489,000 October 1 588,000 2020: March 1 1,572,000 June 30 552,000 Amounts borrowed and outstanding: $1.7 million borrowed at 10%, specifically for the project $6 million borrowed on July 1, 2018, at 12% $10 million borrowed on January 1, 2017, at 6% Required: Note: Round all final numeric answers to two decimal places. Compute the amount of interest costs capitalized each year. Capitalized interest, 2019 $ fill in the blank 1 Capitalized interest, 2020 $ fill in the blank 2 If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2020. $ fill in the blank 3
- How much was the investment acquisition cost at July 1, 2020? A.P515,100 B. P510,000 C. P509,400 D. P504,900 - What is the investment carrying amount at December 31, 2020? A. P647,600 B. P550,000 C. P541,350 D. P536,250