Business, 08.10.2020 17:01 001054213

The list includes all balance sheet accounts related to cash from operating activities. Case X Case Y Case Z
Net income $4,000 $100,000 $72,000
Depreciation expense 30,000 8,000 24,000
Accounts receivable increase (decrease) 40,000 20,000 (4,000)
Inventory increase (decrease) (20,000) (10,000) 10,000
Accounts payable increase (decrease) 24,000 (22,000) 14,000
Accrued liabilities increase (decrease) (44,000) 12,000 (8,000)
For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

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Answer from: alexamorantess

Please see answers in explanation column

Explanation:

Using the indirect method.

Balance Sheet Accounts Case X Case Y Case Z

Net Income $4,000 $100,000$72,000

Adjustments to reconcile net income to net cash provided by operations:

Depreciation $30,000 $8,000 $24,000

Account Receivables $-40,000 $-20,000$4,000

Inventory $20,000 $10,000-$10,000

Account Payable $24,000 -$22,000$14,000

Accrued Liability -$44,000 $12,000-$8000

Cash Flows from operating

activities -$6,000$88,000 $96,000

Answer from: Quest

reducing the scale of the market for a new product.

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

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