High flyer, inc., wishes to maintain a growth rate of 16 percent per year and a debt-equity ratio of 0.90. the profit margin is

Response: appropriate hygiene practices

Justification:

Answer:

Details on Costs and Revenue associated with the new CD

e. None of the alternatives given

Explanation:

a) Data and Calculations:

Variable expenses:

Direct materials and labor:    $2.50/CD

Royalties for songwriters:          $0.70/CD

Royalties for recording artists: $2.00/CD

Overall variable cost                     $5.20/CD

Price for CD Distributor: $10.00/CD

Contribution margin                       $4.80/CD

Fixed Costs:

Costs for advertising & promotion:           $380,000

Overhead for Sony Records Inc.: $300,000

Total fixed expenses                         $680,000

To find the break-even point = Total fixed costs/Contribution per unit

= $680,000/$4.8 = 142,000 CDs

Given that they have sold 100,000 CDs

The increase is 42,000 (142,000 - 100,000)

This growth represents a 42% change = (42,000/100,000 * 100)

The shift in sales from 100,000 to 142,000 CDs required to reach break-even is a 42% increase.  None of the available choices from a to d provide the correct answer.

Answer:

Net investing cash flow = $5,300,000 outflow

Explanation:

Acquisition of stock in another firm = $2,200,000 (outflow)

+ Short-term investment acquisition = $500,000 (outflow)

- Proceeds from equipment sale = $800,000 (inflow)

+ Equipment acquisition = $3,400,000 (outflow)

Net cash flow from Investing activities = $5,300,000 (outflow)

The net investing cash flow amounts to $5,300,000 outflow

Net cash flow is calculated by adding money earned from asset sales, stocks, bonds, or loan repayments, and then deducting money spent on assets, loans, or investments. The result is what you see reported in the cash flow statement as Net Cash Flow.