The profit earned by a business in 2022 was £72,500. The proprietor injected newcapital of £8,000 during the year and withdrew goods for his private use which cost£2,200.If net assets at the beginning of 2022 were £101,700 what were the closing net assets?a) £25,000b) £39,400c) £168,400d) £180.000

Net assets is the amount which represents the resources owned by the entity. These are the resources…

Answered: The profit earned by a business in 2022…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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12. Aqua Ltd has operating profit for the year ended 30 June 2020 of £56,300, after charging depreciation of £18,500 and making a profit on the disposal of a car of £1,000. The balance sheet shows the following: InventoryTrade Receivables Trade Payables 2019 2020 ££ 8,500 13,200 17,000 15,500 12,600 14,200 What is the net cash from operating activities? a) £71,200 b) £72,200 c) £78,100 d) £77,100
Solve the first task, with explanation
Your employer, Rubio LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0…………… $ -2,750,000 Year 1………………. 220,000 Year 2……………….. 226,000 Year 3……………….. 250,000 Year 4………………… 255,000 Year 5 ………………… 230,000, and a sale @ $3,290,000 takes place EOY 5 The company’s weighted average cost of capital that they use as their discount rate for such calculations is 12% What would be the total cash flows in Year 5, taking into consideration the cash flows, annual debt service, sale price and the balance on the loan at the EOY 5? $1,662,985 $1,937,607 $1,802,986 $1,343,455 What is the leveraged IRR of the project ? 64% 58% 48% 55% In the above problem, you might expect The Yield to be higher than the discount rate because you sold the property at a profit. The NPV to be positive because the IRR is higher than the discount rate The NPV to be negative because the IRR is lower than the discount rate All of the…
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he financial statements of Hollywood Estate are given below. Comparative Statements of Financial Position at: 30 September 2021 30 September 2020 Assets $ $ Current Assets Inventory 420 000 460 000 Accounts Receivable 390 000 320 000 Interest Receivable 4 000 9 000 Investments (Held for trading) 50 000 0 Cash in bank 75 000 0 Cash in hand 7 000 5 000 Total Current Assets 946 000 794 000 Non-Current Assets Property, Plant and Equipment (net) 584 000 510 000 TOTAL ASSETS 1 530 000 1 304 000 Liabilities and Shareholders’ Equity Current Liabilities Bank overdraft 0 70 000 Accounts Payable 550 000 400 000 Interest Payable 6 000 33 000 Income Tax Payable 100 000 90 000 Other Payables 30 000 0 Total Current Liabilities 686 000 593 000 Non-Current Liabilities…
a) Calculate the free cash flow generated by a firm which has earnings before interest and taxes of £30m, has depreciated its fixed assets by £1m, has invested £10m in new fixed assets and £5m in working capital during 2019 when it paid corporate tax at 20%. Explain what you have assumed about the firm’s asset base. (b) During 2019 the firm in (a) generated revenue of £60m, its cost of goods sold was £20m and its selling, general and administrative costs were £10m. You anticipate that over the next five years revenue will grow at 5% each year, the cost of goods sold will continue to be a fixed percentage of revenue, but due to managerial efficiencies administrative costs will not change. All forms of investment, together with depreciation will have a consistent relationship with revenue. At the end of this five-year period you believe that free cash flow will grow at 2% each year. What is the company worth at the end of 2019, assuming that its weighted average cost of capital is 5%?
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Hampton Industries had $68,000 in cash at year-end 2020 and $16,000 in cash at year-end 2021. The firm invested in property, plant, and equipment totaling $170,000 - the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$100,000. Round your answers to the nearest dollar, if necessary. a. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign. b. If accruals increased by $35,000, receivables and inventories increased by $195,000, and depreciation and amortization totaled $13,000, what was the firm's net income?
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The 2021 Income statement for Egyptian Nolse Blasters shows that depreciation expense is $80 million, NOPAT is $239 million. At the end of the year, the balance of gross fixed assets was $650 million. The change in net operating working capital during the year was $70 million. Egyptian's free cash flow for the year was $180 million. Calculate the beginning-of-year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
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The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets Cash 24,700 $ 41,750 Accounts receivable 188,500 183,400 Allowance for doubtful accounts (15,000) (16,500) FVTOCI investments 260,000 200,000 FVTPL investments 60,000 80,000 Inventory Prepaid insurance 184,000 161,000 18,000 16.000 665,650 150,000 1,480,000 -580,000 S 1,400,000 $ 1,050,000 $ 2,120,200 $ 1,715,650 $ 720,200 $ Land 400,000 Buildings and equipment Accumulated depreciation 1,650,000 -650,000 Liabilities and Shareholders' Equity Short-term bank loan 22,000 5000 103,600 16,750 Accounts payable Unearned revenues Тах рayable Dividends payable 119,300 20,400 19,900 25,000 16,600 30,000 $ 187,250 S $ 800,000 $ 1,124,950 186,300 Common shares 800,000 Retained earnings 747,350 -18,000 1,529,350 $ 2,120,200 $ 1,715,650 AOC- FVTOCI investments 8,000 1,932,950 Kaminsky Ltd Statement of Income for the…

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