In this lesson, Nick Palazzolo, CPA, demystifies the statement of cash flows by breaking down its three fundamental sections: operating, investing, and financing activities. He delineates the typical inflows and outflows for each category, underscoring the usual patterns for a thriving business. Nick uses relatable examples such as Spotify's business operations to illustrate how companies raise capital, invest in assets, and earn revenue. He also clarifies common misconceptions, like why paying interest on debt is considered an operating activity, and navigates through the nuances of non-cash transactions such as depreciation and the equity method. With his clear explanations and emphasis on the practical aspects that need to be memorized, Nick sets the stage for a solid understanding of how cash flow statements reflect a company's financial health.
Category: Finance
How bullion investment works how to invest in gold bullionrockbullionrock
The Beginner’s Guide to Bullion Investing Bullion investing involves buying precious metals like gold, silver, platinum, and palladium in the form of bars or coins. This guide will cover the
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A comparison of online stock trading simulations for teaching investments
JSTOR is a digital library of academic journals, books, and primary sources.
A comparison of online stock trading simulators for teaching investments.
By Joel Jankowski and Todd M. Shank, Published on 01/01/10
7 Best Stock Market Simulators
Stock market simulators let you test your investment strategies without risking any real money. Here are some of the best options.
A Company Is Evaluating Three Possible Investments What Is the Accounting Rate of Return for Project C
A company is evaluating three possible investments.Each uses the straight-line method of depreciation.The following information is provided by the company: [begin{array} r hline & text { Project A } & text { Project B } & text { Project C } \ hline text { Investment } & $ 240,000 & $ 54,000 & $ 240,000 \ hline text { Residual value } & 0 & 10,000 & 36,000 \ hline text { Net cash inflows: } & & & \ hline text { Year 1 } & 52,000 & 40,000 & 96,000 \ hline text { Year 2 } & 52,000 & 31,000 & 66,000 \ hline text { Year 3 } & 52,000 & 27,000 & 76,000 \ hline text { Year 4 } & 52,000 & 24,000 & 36,000 \ hline text { Year 5 } & 52,000 & 0 & 0 \ hline end{array}] What is the accounting rate of return for Project C? (Round your answer to two decimal places.) A) 12.50% B) 12.68% C) 44.44% D) 15.00%