Initial outlay cash flows Study guides, Class notes & Summaries

WGU - C214 Financial Management – Final With CompletebSolution Statement of Cash Flows Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. Cash Flow from Investing Activities (CFI) Cash flow that is generated from investments in long term assets. C...

What is the present value of the following stream of cash flows received at the end of each year, at a discount rate of 7.5% per year? Year 1: $50,000 Year 2: $45,000 Year 3: $43,000 - ANSWERS$120,065 What is the present value of the following stream of cash flows received at the end of each year, at a discount rate of 7.5% per year? Year 1: $43,000 Year 2: $45,000 Year 3: $50,000 - ANSWERS$119,188 A company is evaluating an investment project that requires an initial capital investm...

Net Income = Revenues - Expenses Revenues - Cost of Goods Sold (COGS) Gross Profit Gross Profit - Operating Expenses EBIT EBIT = Sales - Costs - Depreciation EBIT = Operating Profit or Operating Income EBIT - Interest Expense = Earnings Before Taxes Earnings before Taxes - Tax Expense = Net Income (NI) Retained Earnings End RE = Beg RE + NI - Dividends END RE = Beg RE + (Sales Revenue X Margin%) - Dividend Payout Ratio x (Sales R...

WGU C214 OA Financial Management. What is included in the Income Statement and NOT in the Statement of Cash Flows? - Depreciation Expense Computation of Net Income: A co. sold products in 2014 for $120k and collected $100k cash and remainder in 2015. Co. incurred $70k expenses for 2014 and paid $100k which included $30k for expenses incurred in 2013. What is net income for 2014? - Computation of Net Income (R-E=NI) $50,000 Net Income = $120k - $70k = $50k, or Revenues - Expenses Incurre...

What is included in the income statement and not on the statement of cash flows? - ANSWERSDepreciation Expense The basic equation for a balance sheet is: - ANSWERSEquity = Assets - Liabilities What is Cash Flow From Operating Activities? - ANSWERSIt is cash flow generated for sale of products and services to customers What is the formula for Retained Earnings? - ANSWERSEnding Retained Earnings = Beginning RE + NI - Dividends Is depreciation and salvage value on an asset precise or is...

Five Key Principals of Capital Budgeting - ANSWER-1) Decisions are based on incremental cash flows. Sunk costs are not considered. 2) Cash flows are based on opportunity cost 3) Timing of the cash flows is important 4) Cash flows are analyzed on an after-tax basis 5) Financing costs are reflected in the required rate of return, not in the incremental cash flows Payback Period - ANSWER-Number of years it takes to recover the initial cost of the project. Ignores time value of money and any ...

Statement of Cash Flows - Answer-Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) - Answer-Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. Cash Flow from Investing Activities (CFI) - Answer-Cash flow that is generated from investments in long term assets. Cash Flow from Financing Activities (CFF) ...

The goal of the corporation is to: maximize stock price What makes an efficient market? Competitive market, liquidity, transparency What is the relationship between risk and required return? As risk increases, required return increases. What are the 3 main financial statements? Income statement, the Balance Sheet., and the statement of cash flows Which financial statement reflects a POINT in time (not a period in time) Balance sheet What is Revenue? Amoun...

Governmental Accounting-Exam 2 Questions and Answers 2023 Fund basics-Governmental fund types The general fund, where a government accounts for everything not reported in another fund Special revenue funds, for reporting specific revenue sources that are limited to being used for a particular purpose Debt service funds, which account for the repayment of debt Capital project funds, which track the accumulation and use of resources for constructing, acquiring, and rehabilitating capital asse...

1. A project has an initial cost of $40,000, expected net cash inflows of $9,000 per *NPV*= -$40,000 + $9,000[(1/I) - (1/(I × (1 + I)N)] = -$40,000 + $9,000[(1/0.11) - (1/(0.11 × (1 + year for 7 years, and a cost 0.11)7)] of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line.) What is the project's IRR? What is the project's MIRR? What is the project's PI? What is the project's pay- back period? What is the project's dis- counted payback period? ...