Business
in the current year, a company paid interest of $40,000, had net capital expenditures of $300,000, and reduced outstanding debt by $75,000. in addition, the company reported cash flow from operating activities of $600,000, cash flow from investing activities of ($250,000), and cash flow from financing activities of $65,000. the marginal tax rate is 35%. compute the free cash flow to equity holders.
he TRIM (Team, Resources, Idea, Market) framework is a planning tool that identifies the types of people needed for the team, the resources available and needed, the details of the idea, and the potential market for the product or service. It serves as a tool for determining the types of people you would like on your team and how you might go about attracting them to your business, the resources you have available to grow the business and the types of access you may have to other resources, the validity of your idea, and the potential market for your product or service.Pick one of the four TRIM variables (Team, Resources, Idea, Market) and describe some of the questions that might be asked pertaining to this variableFor example: Team: Who needs to be on the team? What skills do they need etc. Resources. What cash do what have to use? What equipment do we need to start etc. Idea: How is our idea unique? What customer needs are being met etc. Market: Who are our primary customers? How will we reach them etd.
On January 1, 2021, Nath-Langstrom Services, Inc. , a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 6%. The contract calls for four rent payments of $11,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $92,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. ) Required: 1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease. 2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease. Record the beginning of the lease for Nath-Langstrom Services. Jan. 1, 2021Record the lease payment made by Nath-Langstrom Services. June 30,2021Record amortization for Nath-Langstrom Services. June 30,2021Record the lease payment made by Nath-Langstrom Services. Dec. 31,2021Record amortization for Nath-Langstrom Services. Dec. 31,2021Requirement 2Record the lease payment received by ComputerWorld Leasing. June. 30,2021Record depreciation for ComputerWorld Leasing. June 30,2021Record the lease payment received by ComputerWorld Leasing. Dec. 31,2021Record depreciation for ComputerWorld Leasing. Dec. 31, 2021
the campbell company is considering adding a robotic paint sprayer to its production line. the sprayer's base price is $920,000, and it would cost another $25,000 to install it. the machine falls into the macrs 3-year class (the applicable macrs depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $525,000. the machine would require an increase in net working capital (inventory) of $10,500. the sprayer would not change revenues, but it is expected to save the firm $356,000 per year in before-tax operating costs, mainly labor. campbell's marginal tax rate is 35%. what is the year 0 net cash flow? $