The Media Capital For The Firm Provided We Need For Collect Information From The Balance Sheet

1050 Words Nov 1st, 2016 5 Pages
PART A:
1. To determine the networking capital in 2012 for the firm provided we need to collect information from the balance sheet. Networking capital is the measurement between the relationship involving current assets and current liabilities. Networking capital is current assets minus current liabilities. According to the balance sheet for 2012, the networking capital can be calculated as follows:
$8,752.00-$6,862.00= $1890.00

2. The networking capital for 2011 (using the same formula: current assets- current liabilities) $10,083.00-$6,486.00=$3597.00
3. The change in NWC decreased from 2011 ($3597.00) to 2012 ($1890.00) $1707.00.
4. To determine the cash flow from assets:
Cash flow= cash flow to creditors + cash flow to owners
In this case, with the provided information:

Part B:
1. Before solving this equation we will have to put several facts together to determine the best formula to solve. Some helpful information: we are searching for the future value of money, depositing the same amount each year (makes this an annuity), all these deposits occur at the end of the year. Given this information I determined the formula best to use is the future value interest of an annuity stream. Of the 3 method’s, I prefer to use:

FVIFA= FUTURE VALUE INTEREST FACTOR OF AN ANUNUITY
PMT= CASH FLOW PAYMENT
N= # OF PAYMENTS

R= INTEREST RATE
Now we can input our data into the formula to solve for the amount we will have in 17 years while depositing…

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