Final answer:
To prepare Tiger Corporation's statement of cash flows using the indirect method, one starts with net income and adjusts for non-cash transactions and working capital changes. Calculating price per share involves dividing present value of total profits by the number of shares, taking into account that future profits and discount rates are estimates. The merchandise balance is the difference between exports and imports of goods, while the current account balance also includes services and income payments.
Step-by-step explanation:
Calculating Cash Flows from Operating Activities
To prepare a statement of cash flows using the indirect method for Tiger Corporation, one starts with the net income and makes adjustments for non-cash transactions and changes in working capital. This method reconciles net income with cash provided by or used in operating activities. As there is a hint regarding the calculation of dividend payments, these typically would be considered under financing activities rather than operating activities. More data is needed to calculate dividend payments accurately, which usually involves looking at the retained earnings and dividends declared figures in the equity section of the balance sheet.
Calculating Price Per Share
When calculating the price per share using the present value calculations at a 15% interest rate, one divides the present value (PDV) of total profits by the number of shares to arrive at the price per share. In this case, 51.3 million divided by 200 shares equals 0.2565 million or $256,500 per share. However, it's important to note that such calculations are based on estimates of future profits, which are inherently uncertain.
Maintaining Balance of Trade
To balance the current account, a country must consider the dollar amounts of both exports and imports of goods and services, along with income payments reflecting financial inflows from investments abroad. The merchandise balance involves calculating the difference between exports and imports of goods, while the current account balance also factors in services and income payments.