Depreciation is initially deducted from the cash flow calculation before being brought back because it doesn't actually result in a cash outflow but rather a tax deduction. The answer is (a).
Depreciation must be added back to net income to get the after-tax cash flow. Depreciation is a non-cash expense that simulates the loss of an asset's economic worth but does not include a cash outflow. It's easy. Depreciation is a non-cash item, hence it must be included in the operational activities portion of the cash flow statement along with other costs like amortization and depletion.
Depreciation is a non-cash expense that has been subtracted from revenue, so it must be added back to net income in order to calculate the cash flow from operations. Since depreciation is merely a continuous charge to a fixed asset's carrying value intended to lower the reported cost of the asset over its useful life, it is seen as a non-cash expense.
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Correct Question:
When calculating cash flow, why is depreciation first subtracted but then added back in?
a. Because it is not a real cash outflow but does create a tax deductible expense.
b. Because it is an expense that can be immediately and fully deducted from the revenues of the firm.
c. Because it changes from negative to positive as the project moves forward
d. Because it serves to increase the amount of tax the firm will have to pay to the tax authoritiese. Because it has the unusual characteristic of switching signs in the m
in a single period inventory model, if the demand is normally distributed with a mean of 80 and a standard deviation of 10, and the optimal service level is 90%, what is the optimal order quantity? 88.2 67.2 88.9 90 92.9
The optimal order quantity will be 92.9
Inventory models deal with the time at which orders for certain goods are to be placed, and the quantity of the order.
Inventory models manage the time at which orders for specific merchandise are to be set, and the amount of the request. The examination issue concerns approaches to enhancing these choices, considering the cost of getting the merchandise, the cost of holding a unit in inventory, and the cost of deficiencies. Further developed inventory models manage circumstances in which there are limitations on creation offices, storage spaces, time and/or cash. For a considerable length of time, more exertion was centered around inventory models than some other area of use.
While there are many kinds of inventory, the four significant ones are unrefined substances and parts, work underway, completed products and support, fix and working supplies.
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Is McDonalds is a transnational corporation?
A sizable TNC is the US fast food business McDonald's, which operates 34,000 stores throughout 119 nations.
Transnational often refers to a movement or expansion across national boundaries. The transnational corporate definition used in the business world reflects the concept of transnational. In the business world, a company has branches in other nations is referred to as transnational.
Trade is impacted by globalisation since so many businesses operate internationally. Multinational corporations (MNCs), sometimes known as transnational corporations (TNCs), are businesses that conduct business internationally.
TNCs include companies like Apple, McDonalds, and Unilever. TNCs often have headquarters and offices in the industrialised countries. To take advantage of labour that is less expensive, they frequently have factories in developing nations.
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complete the following passages to describe how federal, state, and local government spending differ in focus. a. on average, half of government spending goes to employment and income support, and one-fifth goes toward education. b. social insurance programs plus spending on military and veteran's benefits account for about 80% of government spending. c. the biggest chunk of government spending goes to public primary and secondary education, followed by smaller chunks for various community services.
Because it is their primary job to reduce unemployment and enhance the educational system, state and local governments spend money on employment, income support, and education.
How effective is local governance in our society?In order to expand on their official community plan, their role in guiding community growth, and their control over land use, local governments might start a community's economic planning initiatives. The following local government duties have an impact on planning and economic development: zoning and planning regulations, Taxation.
What factors contribute to rising government spending?Increased government spending, according to Keynesian economics, improves aggregate demand and consumption, which results in increased production and a quicker exit from recessions.
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when the executive branch and its agencies translate laws into routine procedures and practices, this is called:________-
Implementation is the process through which the executive branch as well as its agencies convert legislation into customary practices and procedures.
By implementation, what do you mean?
The act of carrying out a plan, a methodology, or any other concept, idea, concept, description, guideline, or policy is known as implementation. As a result, for anything to eventuate, movement must come after any previous thinking.
What is the procedure for implementation?
In order to fulfil strategic goals and strategies, implementation refers to the process that converts plans and strategies into action. As critical as, if not more so than, your strategy is the execution of your strategic plan.
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kelly's kitchen strives to improve its customer service and makes sure that its customers enjoy the food and ambience at the restaurant. the restaurant's manager gathers and assesses customer reviews from various online sources and then evaluates their opinions and sentiments. this scenario illustrates the process of .
Restaurant managers collect and rate customer reviews from various online sources and then evaluate their opinions and sentiments. This scenario is referred to as social media monitoring.
Social media monitoring is the process of using social media channels to track, collect and handle information and data of certain individuals or groups, usually companies or organizations, to assess their reputation and see how they are perceived online.
Social media monitoring is also known as social media listening and social media measurement. Organizations use social media monitoring to reach customers and prospects for information gathering and front-end customer support. It is used to collect and collate data, especially by organizations looking for customer intelligence to determine current industry trends. This process is made easier - yet more tedious - due to free and readily available outlets, such as blogs, wikis, news sites, social networking sites, forums, video / photo sharing sites and message boards.
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Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then: _________
Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then employment and production rise.
What transpires if the anticipated price level rises?Inflation is the term used to describe when prices increase. Deflation is the term for when prices decrease. The relationship between pricing and customer purchasing power is also present. In general, the purchasing power of money decreases as price levels rise.
What happens to businesses in the short term if the price level is higher than anticipated?A higher predicted price level will result in a reduction in the output of goods and services and a shift to the left in the short-run aggregate-supply curve. The quantity of goods and services supplied rises at a lower predicted price level, which also moves the short-run aggregate-supply curve to the right.
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preferred stock of detroit motors pays a dividend of $9.76 each year and trades at a price of $98.06. what is the cost of preferred stock capital for detroit motors? enter your answer in percent and round to the nearest one-hundredth of a percent. do not include the percent sign (%).
The cost of preferred stock capital for Detroit motors is 0.099.
Preferred stock dividend = $9.76
Trading at a price = $98.06
The return that investors might anticipate receiving on their investment in a company's preferred stock is measured by the cost of preferred stock capital. It is determined by dividing the share price by the annual dividend per share.
Calculating the cost of preferred stock capital -
= Preferred stock dividend / Trading Price
= 9.76 / 98.06
= 0.099.
This means that an investor in the company's preferred stock can expect to receive a return of 9.9% on their investment.
Investors should carefully weigh the cost of preferred stock capital before choosing to purchase a company's preferred shares. They can compare the possible returns of various assets using this information, which gives them an idea of the return they can anticipate receiving on their investment.
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could blades modify the timing of the thai imports to reduce its transaction exposure? what is the trade-off of such a modification?
Yes, in order to lessen its transaction exposure, blades change the time of Thai imports.
Blades may change how it handles payments in order to lessen the risk associated with transactions in Thailand. ' Currently, Blades pays its rivals' Thai suppliers sixty days early. The dollar cost to Blades would decrease if the Thai baht depreciated during the next sixty days.
The trade-off arising from late payments to the Thai suppliers is that Blades is unable to use the costs and revenue denominated in baht to balance each other out. This is so that baht can be received and used when it is needed. As a result, Blades might need to hedge its risk more frequently.
With both Thai and British consumers, Blades has fixed-price exporting agreements for the ensuing two years. Additionally, the time of the ensuing inflows of foreign currency is known. Blades could benefit from long-term hedging strategies because they are particularly suitable for businesses that can predict with accuracy their future foreign currency payables or receivables.
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which of the following has not been given as a reason for odd pricing? a. reduce shrinkage b. iconoclastic determinism c. pluralistic ignorance d. perceived discounting
From the following factors it has not been given as a reason for odd pricing was reduce shrinkage. The correct option is (a).
What do you mean by the odd pricing?A pricing strategy known as odd pricing makes minute tweaks to the pricing structure in an effort to maximise profit.
The degree of control it affords you over your brand and price perception is the main advantage of odd even pricing. Understanding how different numbers "feel" to customers will help you create a more strategic marketing mix, which includes price.
It is predicated on the idea that consumers are calculation-phobic and will, as a result, only look at the first few digits of a price while making a purchase.
Therefore, from the following factors it has not been given as a reason for odd pricing was reduce shrinkage.
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Jay'den earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3. 8% compounded annually. Jay'den wants to know his balance after 15 years?.
If the deposited money in an account that pays an interest rate of 3. 8% compounded annually then the balance after 15 year is $831.25.
Why is interest rate such a big deal?Interest rates have an impact on borrowing costs and spending choices made by individuals and corporations. If interest rates were lower, more people might borrow money for a car, a house renovation project, or a mortgage for a new home, for instance.
What is a simple definition of an interest rate?The sum that the lender demands from the borrower in addition to the principal amount is known as the interest rate. Regarding the recipient, a person who deposits money in a bank or other financial institution also makes extra money due to the time worth of money, which is known as interest earned by the depositor.
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In the iowa car crop, steven landsburg argues that importing cars from japan and exporting wheat from iowa is analogous to…
A) importing wheat.
B) exporting cars.
C) growing cars in Iowa.
D) growing wheat in Japan.
Steven Landsburg makes the case in the Iowa car crop that growing automobiles in Iowa is comparable to exporting wheat from Iowa and export cars from Japan.
Explain what export is.Exporting is the method by which businesses from one nation sell their products and services to clients or customers in another nation. Some sparkling wines can only be produced in the nation's Champagne area. This product is an illustration of France's comparative advantage because it can be produced anywhere in the world.
Why is exporting crucial?As businesses create new items for niche customers, entering export opportunities can increase turnover and creativity. By spreading out sales across several nations or regions, it can help lower risk exposure.
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john's brother, phil, loaned him $10,000 to start his business. john didn't do too well and planned to file for bankruptcy. in may, he gave phil his car worth $8,000 to satisfy the debt. john filed his petition in november. after liquidation, if the car were included in john's bankruptcy estate, every unsecured creditor would have received 85% of the debt owing to him. will the transfer of the car to phil be a voidable preference?
john's brother, phil, loaned him $10,000 to start his business. john didn't do too well and planned to file for bankruptcy. in may, he gave phil his car worth $8,000 to satisfy the debt. john filed his petition in november. after liquidation, if the car were included in john's bankruptcy estate, every unsecured creditor would have received 85% of the debt owing to him. The transfer of the car to phil will not be a voidable preference
This preference cannot be changed, its not a voidable preference. John did not regard Phil's loan any differently or in a different manner from his other creditors.
When a debtor chooses to settle a debt right before declaring bankruptcy, whether in cash or by transferring assets, it constitutes a voidable preference.
In this instance, John gave Phil his automobile in May and he declared bankruptcy in November.
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what is a major function of the securities markets? multiple choice they advertise the sale of stocks and bonds of major corporations. they provide long-term funding for investors. they assist businesses in finding long-term funding to finance business expansion. they provide investors with information and advice regarding the value of stock and bond issues offered by major corporations.
A major function of the securities markets is they assist businesses in finding long-term funding to finance business expansion. Thus option C is correct.
What is the importance of securities markets?Securities are financial institutions that are sold to raise money. The main purpose of the securities markets is to allow capital to move from those who already have it to individuals who require it.
One of the primary purposes of the securities market is to help companies find the long-term financing they require to finance operations, grow their companies, or make purchases of merchandise and services.
Therefore, option C is appropriate.
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creosote inc. operates a plant—a "major source"—that emits hazardous air pollutants for which the environmental protection agency has set maximum levels of emission. the plant does not use equipment to reduce its emissions. under the clean air act, this is most likely?
Creosote inc. operates a plant—a "major source"—that emits hazardous air pollutants for which the environmental protection agency has set maximum levels of emission. The plant does not use equipment to reduce its emissions. Under the clean air act, this is most likely a Violation. The correct answer is A.
The Clean Air Act, protect public health and welfare and to regulate hazardous air pollutant emissions, while The plant of Creosote. inc did not use equipment to reduce its emissions so its causing polution this is literaly violation to the the Clean Air Act.
The Clean Air Act, the primary federal law governing air quality in the US, aims to control and reduce air pollution on a national level. It was first adopted in 1963 and has subsequently undergone numerous modifications. It is among the country's first and most important contemporary environmental regulations.
The ability to regulate and reduce greenhouse gas emissions is given to the federal government, which is essential to the global effort to combat climate change. Furthermore, communities of color and low-income areas, which are typically the locations of polluting facilities, gain the most from rigorous controls.
Your question is incomplete but most probably your full question was:
Creosote Inc. operates a plant—a "major source"—that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use equipment to reduce its emissions. Under the Clean Air Act, this is most likely
a. a violation.
b. not a violation because a "major source" is exempt.
c. not a violation because the plant does not use any equipment.
d. not a violation because the plant is not a mobile source.
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What is another name for interest group?
Answer: interest group, also called a special interest group, advocacy group, or pressure group, is any association of individuals or organizations, usually formally organized, that, on the basis of one or more shared concerns, attempts to influence public policy in its favor.
ch10: a company thinks that its image in the market is one of poor quality. it enters into a sponsorship agreement with a team that has won six consecutive league championships. what benefit is it seeking?
The benefit is it seeking is to alter or reinforce the public perception of the company.
the location or feature of a person or organization who vouches for, helps, advises, or helps fund some other character or a company or challenge: The money from your sponsorship will pass toward paying the child's school expenses and ensuring they get 3 food an afternoon. logo sponsorship marries sponsorship and advertising as a logo or organization supports an employer, business, hobby, or occasion. Examples include branded sports activities games, music galas, artwork shows, and business expos.
Sponsoring something is the act of supporting an occasion, hobby, individual, or company financially or thru the supply of products or services. The individual or organization that gives the aid, much like a benefactor, is known as the sponsor.
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in the domestic market, following the imposition of an import quota, imports ________, domestic production ________, and prices ________.
In the domestic market, following the imposition of an import quota, imports decrease, domestic production increase, and prices increase.
The domestic market can be referred to or considered as a type of market, wherein the maximum quantities are supplied within the economy, and the supplies from the foreign countries are significantly lower.
As the production is done within the economy, there is an ultimate increase in the domestic production levels, and a decrease in the number of imports made by the economy. As a result, the price of the goods and services also increases due to an increased domestic supply.
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(d) calculate the cost of job 845 using a machine hour departmental overhead rate for the milling department ($42 per hour) and a direct hour overhead rate for the finishing department ($108 per hour). (round your answer to the nearest dollar.)
Cost of Job is 845:
Departmental overhead is given $ 42
Therefore, Total cost found given $ 12,370
Activity base overhead is given $108
and Total cost: $ 17,310
Job 845
Materials 7000
Labor 1,000
Milling overhead is explained below:
25 machine hours x $32 = $ 800
Finishing overhead is
35 labor hours x $102 = $ 3,570
Total cost: $ 12,370
Therefore from above calculations we can conclude that the total cost of job using a machine hour departmental with overhead for a certain milling department is Dollar 12,370 or $12,370.
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what type of video campaign should you use if your goal was to increase purchase intent for your products?
You should use online sales of Video campaigns to stimulate interest in your products.
The sale or purchase of physical goods through the internet is known as e-commerce. the sale and purchase of services and digital commodities are also included in the definition of e-commerce. It basically pertains to an organization's internet sales. Online platforms and environments are utilized in online sales to exchange goods, services, or products. Online sales provide a lot of benefits over conventional marketing strategies, such as: lower start-up and maintenance expenses. It is not necessary to rent high-street properties, pay retail staff, or respond to innumerable pre-sale inquiries. Any company activity that takes place online is referred to as online business. Offering services online or conducting business online are just two examples of the many ways that operating an internet business can be done.
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if wise paid $30,000 to a real estate broker on january 1, 2025, as a fee for finding the lessor, what is the initial measurement of the right-of-use asset? explain.
The initial measurement of the right-of-use asset would be the amount paid, which in this case would be $30,000.
This is because the amount paid is a direct cost associated with obtaining the right-of-use asset and should be recorded as the initial measurement.
This initial measurement will then be amortized over the term of the lease.
An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
Assets are reported on a company's balance sheet. They're classified as current, fixed, financial, and intangible.
There are basically classified as short-term assets, financial investments, fixed assets, and intangible assets.
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the following question asks you to analyze the monopolistically competitive market structure, which has some characteristics of both a monopoly and a competitive market.
The monopolistically competitive market structure, which has some characteristics of both a monopoly and a competitive market. Both competitive and monopolistically competitive markets are easy to enter and exit in the market. The goods in a monopolistically competitive market is slightly variated or there is product-differentiation while those in competitive markets are homogenous.
What is a monopolistic competition?Monopolistic competition is a sort of market structure in which numerous businesses are present in a given sector and make comparable but distinctive goods .
None of the businesses has a monopoly, and they all run their own businesses without taking into account what other businesses are doing .
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What is an example of transnational?
McDonald's or KFC can be regarded as an example of a transnational corporation.
A transnational corporation can be referred to or considered as a corporation that has its operations in more than one country. However, the methods or practices of operations as per the local customs and traditions to better adapt with the local cultures. This helps in better and effective business operations across the countries of operations. For example, McDonald's, a transnational company, operates differently in the US and in India.
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harper company lends hewell company $9,600 on march 1, accepting a 4-month, 4% interest note. harper company prepares financial statements on march 31. what related adjusting entry should be made before the financial statements can be prepared?
Interest Receivable$40
Interest Revenue$40
The adjusting entry is shown below:
Interest receivable Dr $40
To Interest revenue $40(Being the accrued interest is recorded)
The computation is shown below:= $9,600 × 5 months × 1 months ÷ 12 months = $40
For recording this journal entry we debited the interest receivable as it increased the assets and credited the interest revenue as it also increased the revenues And the one month is taken from March 1 to March 31
Long-term bonds are one option for corporations to use for financing. Bonds address a commitment to reimburse a chief sum sometime not too far off and pay interest, typically on a semi‐annual premise. Bonds are typically issued concurrently to multiple lenders, in contrast to notes payable, which typically represent a single amount owed to a lender. Before the bonds reach maturity, these lenders—also known as investors—may sell them to another investor.
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asian tigers (hong kong, singapore, south korea, and taiwan) had very strong gdp growth rates thanks to their high level of investment and the low interest rate. what caused the high investment and low interest rate according to neoclassical theory?
According to neoclassical theory, a firm's level of investment should only be determined by its perceived investment possibilities as assessed by its marginal Tobin's q. Marginal Tobin's q is calculated by dividing the investment opportunity's value by the investment amount needed.
The neoclassical growth hypothesis was first presented by Robert Solow and Trevor Swan in 1956. According to the hypothesis, the three components of labor, capital, and technology lead to economic growth. Even though an economy has a finite amount of labor and capital resources, technology can nonetheless make a limitless contribution to growth. Neoclassical theory is predicated on the notion that varied organizational contexts render its structure unimportant. This theory, which incorporates behavioral sciences in business management, is a modified version of the conventional theory.
The primary tenet of Neoclassicism was that art should embody the best aspects of human nature and should morally uplift its audience.
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The following information is taken from the income statement of olympic, inc. : depreciation expense $ 90,000 amortization expense 15,000 loss on sale of equipment 9,000 gain on sale of building 27,000 net income 315,000 based on this information, what is the amount of net cash flow provided by operating activities?.
Based on the given information, the amount of net cash flows provided by operaitng activities is $420,000.
Cash flows statement is a financial statement that represents the movement of cash and cash equivalent within a company. Cash flows statement measures how well a company manages its cash position and records any entry and exit of cash and cash equivalen in a company. Cash flows statement is consisted of 3 main part:
Cash flows from Operating activitiesCash flows from investing activitiesCash flows from financing activitiesBased on the data givn, we know that adjustment on the cash flows from operating activites only include:
Net incomeDepreciation expenseAmortiation exenseBoth sale of equipment and sale of building (property asset) are parts of investing activities.
Hence, the net cash flow provided by operating activities is:
Net income $315,000
Depreciation expense 90,000
Amrtization expense 15,000
The net cash flow from operating activities $420,000
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what would be a way for the federal reserve to slow down the economy when it is growing too quickly or is inflationary?
When the economy is expanding too quickly, one method the Federal Reserve will slow things down is to b. purchase back government securities on the open market.
Can I purchase ammunition for use by federal law enforcement?Federal Law Enforcement ammunition, such as this Federal Law 9mm Luger Cartridge 124 Grain Dragon Jacketed Hollow Point, is available online from Target Sports USA with free shipping on bulk ammunition.
Are Federal Premium rounds reliable?The Terminal Ascent ammunition from Federal Premium reliably expands bullets at almost any distance. We are currently in the heyday of high-caliber shotgun shells for big-game hunting, as many others before me and I have stated.
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Do I legally have to pay federal taxes?
Yes, you have to legally pay federal taxes, if you are earning salary from individual, income from investment and other incomes.
The federal taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts as well as various fees. There are seven federal taxes brackets 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your tax bracket is determined by your filling status and taxable income.
The federal income tax is a tax on annual earnings for individuals, businesses, and other legal entities. All wages, salaries, cash gifts from employers, business income, tips, gambling income, bonuses and unemployment benefits.
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le place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. the firm has a tax rate of 34 percent and a profit margin of 6 percent. the firm has no interest what is the amount of the operating cash flow? a. $49,384 b. $52,616 c. $54,980 d. $58,340 e. $114,340
Operating Cash Flow=[tex]$114,340[/tex]
Operating Cash Flow = Operating Income + Depreciation – Taxes + Change in Working Capital.
Operating Cash Flow =$[tex]439,000,+ $32,000-34[/tex]%+$56,000=$[tex]366860[/tex]
[tex]366860/6%=$114,340[/tex]=[tex]114,340[/tex]
Operating cash flow is a metric for the revenue generated by a company's ongoing business operations (OCF). Operating cash flow demonstrates if a business can produce enough positive cash flow to support and develop its operations; if not, it may need outside money for capital growth. Since net income can be impacted by non-cash revenue and expense activities, operating cash flow may be a more accurate indicator of a company's financial health than reported net income. The first section of the statement of cash flows, which is a section of the financial statements, contains it.
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problem 2-3 dividends and retained earnings [lo1] nataro, incorporated, has sales of $675,000, costs of $337,000, depreciation expense of $81,000, interest expense of $50,500, a tax rate of 23 percent, and paid out $42,500 in cash dividends. what is the addition to retained earnings? (do not round intermediate calculations.)
The addition of retained earning of Nataro Inc is $116,505
Retained earnings are a company's cumulative net earnings or profits after dividend payments are deducted.
Formula for calculating the retained earning is:
RE = RE(o) + NI - D
where:
RE = retained earning
RE(o) = beginning period retained earning
NI = net income
D = cash dividends
In the given problem:
sales = $675,000
cost = $337,000
depreciation expense = $81,000
interest expense = $50,500
Hence,
Gross income = sales - all expense
= 675,000 - (337,000 + 81,000 + 50,500)
= 206,500
Net income = gross income - tax
= 206,500 - 23% x 206,500 = 159,005
Therefore, retained earning addition:
retained earning addition = RE - RE(o) = NI - D
= 159,005 - 42,500 = 116,505
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If the fed wanted to expand the money supply as part of an antirecession strategy, it could
If the fed wanted to expand the money supply as part of an antirecession strategy, it could buy U.S. securities on the open market .
Lower interest rates encourage investment, and more money in consumers' hands encourages them to feel wealthier and spend more, both of which are effects of an increase in the money supply.
The Fed has three options for boosting the money supply: bond purchases, a reduction in the reserve requirement ratio, or a reduction in the discount rate. The Fed has three options for reducing the (growth of the) money supply: sell bonds, increase the reserve requirement ratio, or increase the discount rate.
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