FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
6th Edition
ISBN: 9781260529326
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Chapter 2, Problem 8P
Summary Introduction
To determine: The surplus or deficit in the given situations.
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Consider the following cash flows:
Year
Cash Flow
0
–$
32,500
1
14,300
2
17,400
3
11,700
What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Based on the following cash flows (t=0 to t=5), calculate the Precise(Exact) ERR. Assume the MARR is at 10%.
t=0 receipt of $20,000.
t=1 disbursement of $15,000.
t=2 disbursement of $10,000.
t=3 no cash flow
t=4 no cash flow
t=5 receipt of $2,400.
2.82%
6.78%
9.26%
4.17%
1.43%
If accounts payable account balance on 12/31/19 was 11000 and its balance was 12/31/20 was 14000, then the effect on cash flows shows which of the following
A) Increase by 3000
B) Decrease by 3000
C) Increase by 14000
D) Decrease by 14000
Chapter 2 Solutions
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- Hello, please I want the solution for this problem part a... knowing that the final adjusted cash balance should be $5,681arrow_forwardUse the following income statement and balance sheet information to put together a statement of cash flows. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2020 Sales $1,237,000 Cost of goods sold $688,000 Gross profit $549,000 Gen'l & admin expense $156,000 Selling & mkt expense $134,000 Depreciation $25,000 Operating income $234,000 Interest $142,000 Income before taxes $92,000 Income taxes (27%) $24,840 Net income $67,160 Dividends paid $25,000 Assets 2020 2019 Cash $24,000 $14,340 Accounts receivable $124,000 $113,000 Inventory $202,000 $221,000 Total current assets $350,000 $348,340 Gross plant and equipment $700,000 $475,000 Less: accum. depreciation $313,000 $288,000 Net plant and equipment $387,000 $187,000 Total assets $737,000 $535,340 Liabilities Accounts payable $119,000…arrow_forwardGiven the following data from company def, using the direct method of cash flows the company would have determined its cash inflow to be: $30,000.00 Accounts receivable, at 12/31/2018 $20,000.00 Accounts receivable, at 12/31/2019 $507,000.00 Sales for year 2019 $357,000.00 Gross Profit A) 497,000 B) 367,000 C) 347,000 D) 517,000arrow_forward
- 1. Compute the current assets.Cash Php 25,867.00Barney’s drawing 50,485.00Accounts Payable 78,584.00Notes Receivable 45,051.00Building 1,500,125.00Inventory 33,669.002. Compute the Net Income.Service Income Php 356,867.00Prepaid Rent 16,800.00Interest Expense 1,523.00Barney’s drawing 21,786.00Taxes 4,544.00Utilities Expense 3,651.003. The liabilities of Bb Barn are equal to 1/3 of thetotal assets. The owner's equity is P 6,300,500. Whatis the amount of the liabilities?4. Prepare journal entries to the following transactionsfor the year 2020.Sept. 1 V Barney invested Php 150,000 in Barney repair ShopSept 3 Purchased equipment worth Php 80,000 on account.Sept. 12 Paid Php 25, 000 for the equipmentpurchased dated Sept. 3, 2020.Sept. 15 Rendered service amounting toPhp 45,000.Sept. 17 Paid salaries to employees, Php16,000arrow_forwardsuppose that a company's cash flow statement showed the following: net income: 22,523.99 deprecitation 4580.77 accounts receivable -543.32 inventory 592.81 accounts payable 880.05 what is this companys net cash from operating activities? A. 23,453.53 B. 27,154.25 C. 27,697.57 D. 28,034.30 E. 27,441.48arrow_forwardThe balances of opening and closing accounts receivable are R40 000 and R15 000 respectively, what would be the value of cash received from customer if the net sales are R45 000? Select one: a. R85 000 b. R60 000 c. R70 000 d. R100 000arrow_forward
- What is the total cash received from the financing of receivables and the amount of loss, respectively? P1,420,000 and P150,000 P1,320,000 and P150,000 P1,320,000 andP50,000 P1,420,000 and P50,000arrow_forwardIf the cash account balance on the balance sheet is $25,000, total current assets is $150,000, and total assets equals $500,000, using vertical analysis determine the percentage for cash. Group of answer choices 5% 17% 30% none of thesearrow_forwardIf the Merchandise inventory account balance on 12/31/19 was 40000 and its account balance on 12/31/20 was 55000, then the effect on cash flows showas which of the following A) Increase by 15000 b) Increase by 40000 C) decrease by 15000 D) decrease by 40000arrow_forward
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