Problem 8-7 You are given the following information concerning the trades made o
ID: 2639454 • Letter: P
Question
Problem 8-7
You are given the following information concerning the trades made on a particular stock. Calculate the money flow for the stock based on these trades. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar. Omit the "$" sign in your response.)
You are given the following information concerning the trades made on a particular stock. Calculate the money flow for the stock based on these trades. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar. Omit the "$" sign in your response.)
Explanation / Answer
Solution:
In the problem starting price is $30.32. Any increase in price will mean positive cash flow. similarly decreae in price will mean cash outflow. In the last column, net cash flow has been calculated by adding current cash flow with the previous net cash flow
Pricve times
Volume
30.32X3,900
=118,248
0.02X3,900
=78
30.30X3,400
=103,020
0.02x3,400
=68
30.29x3,800
=115,102
0.01x 3,800
=38
29.30x3,950
=115,735
0.99x3,950
=3,910.50
30.42x4,700
=142,974
1.12x3,900
=4,368
30.33x5,000
=151,650
0.09x5,000
=450
Result Net money flow at the end of the day based on these trade is -$20.50;
Price Up/DownPricve times
Volume
Positive money flow Negative money flow Net money flow 30.30 30.32 +30.32X3,900
=118,248
0.02X3,900
=78
+78 30.30 -30.30X3,400
=103,020
0.02x3,400
=68
+78-68=10 30.29 -30.29x3,800
=115,102
0.01x 3,800
=38
10-38=-28 29.30 -29.30x3,950
=115,735
0.99x3,950
=3,910.50
-28-3,910=-3,938.50 30.42 +30.42x4,700
=142,974
1.12x3,900
=4,368
-3,938+4,368=429.50 30.33 -30.33x5,000
=151,650
0.09x5,000
=450
429-450=-20.50