Your Questions About Investing For Beginners

Joseph asks…

Stock Investing for beginners?

I am 29 years old and wanting to get into the stock market. I have started contributing to RSP’s since I was 21 and currently have roughly $80K in my RSP portfolio. Therefore, when I start looking to invest in stocks, I am willing to take on some high risk, and my goal for this, for the time being, is not for retirement – that’s what my RSP’s are for. However, I’m looking to only start with an investment of $2000, low I know, but I want to first start of with a small amount to learn the stock market and how to invest. Can someone help me understand what type of stocks I should be looking to invest in? I’m not sure if I should try to find stocks with growth potential, mix up my portfolio to keep it balanced, invest in bigger companies that pay dividends and have sustainable growth, etc.

Ideally, I would like to have a 15% ROI – 20% ROI, which I feel is not very high for someone willing to take on some risk. I’ve read some articles online on guides to investing for beginners, but I want to know more about what attributes of companies I should be looking at when choosing a company to purchase stock in.
Thanks for all the responses!! It looks like I have more reading to do before I actually start investing. I do not see myself spending hours per day researching and trading, but it if I start to like doing it then maybe I will spend more time. For now, I want to spend a couple of hours per week at most.

financi4 answers:

When you start, keep it simple.

You keep it simple and effective when you:
1) Invest in index funds (like the SPY for the S&P 500)
2) Buy the funds when the long-term trend in the market starts to go up and sell when the long-term trend in the market starts to go down.

Once you get comfortable with putting your real money to work in this way, you could start thinking of doing something else.

If you have sufficient time available and the skills and passion to analyze the financial data of individual companies, you could start allocating a part of your investments to individual stocks. But do your own analysis and do not follow the penny stock picks of someone else. And always keep an eye on the long-term market trend. Because when the overall market is going down like in 2008 or 2001-2003, most stocks go down, even those of the great companies.

Note that I do not bother with trying to pick individual stocks since I am happy with the returns I can get with the combination of Trend Investing and Index Funds.

James asks…

investing for beginners?

im 15 years old, i want to invest in EA for when battlefield 3 comes out.Honestly im using my own money, so the most im willing to invest is 100$ worth of stocks lol.My dad says if i predict the stocks correctly , he will invest a little more for me.Any tips?

financi4 answers:

The problem is that Battlefield 3 was announced a long time ago, so its release is already built into EA’s price. Think of it as if a bunch of investors are predicting how much $ EA will make off of Battlefield 3. If you think it will be a huge hit and will beat investors’ expectations, then you should buy it. If you think Battlefield 3 will make less than everyone predicts, don’t buy it. Personally, I think the price is probably too high because COD is also coming out and will eat into the Battlefield profits… But it’s really anyone’s guess.

In the future, the best way to make $ off of video game companies is to buy the stock before the game is announced. If you think a company is really innovative and will continue to create great games and increase earnings, then buy it.

John asks…

Coin Collecting/Investing for Beginners?

Can someone give a Beginner Coin Collector/Inverter some tips? such as what to watch for, what to stay away from, where to look, ect ect ect.

financi4 answers:

Well let me tell you its really easy to find places that sells coins in your local area, look at the phone book is one of them but i only thought of this after i found a place that sells coins. What i did was typed in some coin key words into google maps and saw a few places pop up then i paid them a visit. The one at my city has about everything from tokens to coins, and they even sell silver investments. They also have buckets of world coins that goes for cheep usually 25 cent a piece at least that’s how much they cost here and most coins stores will have this as i hear a lot of people saying there local coin store have a world coin bucket to select from. Investor coins are great, but i must tell you these coins are usually not for regular coin collectors who just want them for the looks, but to protect your wealth and savings. Such investor coins are the Canadian silver maple leaf coin, and in some cases, depending on the date it was issued it can be a collectible as well. The 1997 was one of the lowest mintage of maples there was with only around 100,000 made. There is another one the dutch liberation tulip privy silver maple this cost around 130.00 but usually these kinda silver coins and investor coins you can find at currency exchange offices. The one here has the silver maples and also the gold maples. Right now i am currently collecting nickel bullion coins and they are in the 1955 to 1981 canadian nickels, they can also be used as investments but also collection such as the 1964 canadian nickel. In that year look for the extra water line. If found in really good condition its worth something and its a good find. I hope you find this information useful

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Your Questions About Stocks And Bonds Game

William asks…

Do Obama Supporters know that he plans to raise the capital gains tax from 15% to 28%?

This will hurt the stock market and the stock market is the only game in town to make more money. The housing market is down and not such a great investment other than buying a house to live in for the long term. Also CDs aren’t so great as rates have fallen. Bonds aren’t great sincy rates have fallen. So raising to almost a double will hurt the market. Does anyone read. Yes Hilliary will raise to 20% but 5% is better than 13%. Yes it is just 8% more than Hillary, but ask yourself is 8% more tax not so much. I don’t want them to raise it at all.

financi4 answers:

Well that is nice, but we live in the United KINGDOM and you have posted in the UK tax section, so Obama is the least of our worries, and we are also facing harsh cuts over here with our own government making hard choices that we might not agree with.

Richard asks…

Do Obama Supporters know that he plans to raise the capital gains tax from 15% to 28%?

This will hurt the stock market and the stock market is the only game in town to make more money. The housing market is down and not such a great investment other than buying a house to live in for the long term. Also CDs aren’t so great as rates have fallen. Bonds aren’t great sincy rates have fallen. So raising to almost a double will hurt the market. Does anyone read. Yes Hilliary will raise to 20% but 5% is better than 13%. Yes it is just 8% more than Hillary, but ask yourself is 8% more tax not so much. I don’t want them to raise it at all.
Also his illegal allien plan is very flawed like most peoples, but Obama voters please look at the facts. It is not about black or white. Obama plans to have illegals go to the back of the line for processing, go back to their countries of origin, pay a fine ($5000.00), and best of all estimate and have them pay back taxes. But said he doesn’t want to split families up as this is un-American. SO how is sending someone back to their country to get in the back of the line while other family members are still here not splitting them up. Now let me be clear to all who read. I AM NOT FOR ILLEGALS BEING HERE FOR ANY REASON. I am not for Amnesty or Illegals getting a break. They broke the law period. I have to pay taxes , and so should they.
Tom, You must not use the stock market much if this is your view. There isn’t much interest on Cds or bonds, housing. So stocks is the only place to get ahead right now. Tom don’t you shop or buy gas. Did you notice inflation? If so then getting your money to beat inflation as Cds are not right now is important as you need leverage on your money to grow. What about all the retired people who are invested and use the stock market to supplement their income.
Michael, good point about Iras and 401k, but not everyone is in these vehicles and the stock market could go down. We don’t need more things to go down right now
maddie, don’t count on the capital gains tax to fix the roads. as always as a Obama supporter does. You guys simply just vote for him because you feel inspired. WELL INSPIRE THIS: Roads get fixed by the gas tax. Do some research please. Capital gains doesn’t fix the road. And as far as the war. Obama can’t pull all the troops out or even close within his first four years if elected. You will see this won’t happen and he will later justify his decission. Another Obama LIE

financi4 answers:

The problem here is the average Obama supporter doesn’t know what a Capital Gains Tax is…they only know hope and change.

Mark asks…

Is it a good idea to invest my money?

I am nineteen years old I have a job and I buy video games here and there but I really do not have a need to buy a lot of things and I was wondering if I should just invest some of the money I have sitting in my savings account in stocks and bonds or should I just let it sit there. If you think I should invest which firm should I choose to help me? I have thought about Schwab because they have portfolio management and I am a college student in the Pre-law program so I would not have to time to monitor my investments the way I should.
By the pre-law statement I mean that I would be in classes during market hours so I would not be able to buy/sell until maybe the last hour of trading

financi4 answers:

Yes, you should invest. Personally I would not leave it up to a brokerage to decide what was best but take an active role in it yourself. Prelaw is not that difficult to do. Bonds do not offer a very attractive rate of return. Same thing with mutual funds-stay away from them. Often times people talk them up because they are “safe” investments but it is not safe because of the missed opportunities that you lose. Anything with a return less than 5% is dismal. 10% is so-so. When you get returns of 20% or more, that is more like it.
Basically, just educate yourself and take an active role in your future because you can do better than brokers! You do not have to be day trading (watching the market all day long) to invest well. CD=Certificate of Depreciation because they do not even keep up with inflation! Education+Diversification=One Happy Investor!
Wow. I am shocked that two other posters thought it was appropriate to copy and paste the same info without listing a source. Anyways, I just want to add that you need to determine the level of risk/reward that you are comfortable with. Someone like you with your whole life in front of you, I would personally be looking for the highest ROI possible and screw the risk. Much better to take full advantage of the effect of compound interest sooner rather than later, which is a good reason to avoid low risk/low return investments like the plague. Another thing is folks will tell you that high return necessarily entails high risk, or penny stocks are automatically high risk. This does not have to be the case. For example I liked U.S. Silver a couple years ago because I visited the Galena mine and learned the story of what was going on there with the collapsed mine shaft that they needed to repair. To raise capital they issued stock, got the shaft open and everything humming along and with a simultaneous explosion in the silver price that stock is up from like $0.15 a year ago to something like $0.55 today, or close to 400% in a year. That is an example of a low risk penny stock because the value was not tied to an internet start up that may or may not work and has no real value but iffy future expectations but it was linked to a solid producing mine with good management, 10s of 1000s of acres owned and looking at a silver market that was ready to explode.

Paul asks…

more questions multiple choice questions??

Congress created the ___ to settle management-labor disputes in companies that are engaged in interstate commerce.
National Labor Relations Board
Labor Union Board
Civil Labor Relations Board

Before a company can do business, it must obtain ___ from the state government.
a large amount of money
permission to organize
interested workers

When we see a ball game between two teams, we are seeing
a monopoly at work.
sports live, and not on television.
competition in action

In business, competition will provide
disagreements and controversy.
the best service at the best price.
poor service at a poor price

A group of businesses that have given control over their prices and selling practices to a small group of people is a
stock.
bond.
trust.

Anti-trust laws have been passed to prevent
trusts and monopolies.
monopolies and franchises.
trusts and franchises

financi4 answers:

Wrong answers removed…

Congress created the ___ to settle management-labor disputes in companies that are engaged in interstate commerce.
National Labor Relations Board

Before a company can do business, it must obtain ___ from the state government.
Permission to organize

When we see a ball game between two teams, we are seeing
competition in action

In business, competition will provide
the best service at the best price.

A group of businesses that have given control over their prices and selling practices to a small group of people is a
trust.

Anti-trust laws have been passed to prevent
trusts and monopolies.

David asks…

Please help me with mytest tomarrow?

1: When we see a ball game between two teams, we are seeing

sports live, and not on television.
competition in action.
a monopoly at work

2: In business, competition will provide

disagreements and controversy.
the best service at the best price.
poor service at a poor price.

3: A group of businesses that have given control over their prices and selling practices to a small group of people is a

stock.
bond.
trust.

4: Anti-trust laws have been passed to prevent

trusts and monopolies.
monopolies and franchises.
trusts and franchises.

5: A board or commission will grant a public utility a ___, which is a contract between the government and the company.

monopoly
deed
franchise

6: What makes each seller work to provide lower prices and better services to customers?

corporation
competition
company

7: When one company has exclusive control over a service or product, it is a

monopoly
franchise
corporation

8: Public utility boards or commissions are used by

the federal government
the state and federal government
the local, state and federal government

9: Being an innovator, risk-taker, and businessperson are characteristics of

a monopoly
an entrepreneur
a federal employee

10: Franchises give the utility the right to

establish a monopoly
control prices
hire new employees

financi4 answers:

1. Competition in action
2. The best service at the best price
3. Stock
4. Trusts and monopolies
5. Franchise
6. Competition
7. Monopoly
8. The local, state and federal government
9. An entrepreneur
10. Control prices

It’s been a long time since I took business and marketing but these are the answers I would use, hope it helps some.

Chris asks…

PLEASE HELP!!! QUIZ ON MONDAY!! Need CORRECT answers to STUDY for test on MONDAY!!!?

1.) When we see a ball game between two teams, we are seeing
sports live, and not on television.
competition in action.
a monopoly at work

2.) In business, competition will provide
disagreements and controversy.
the best service at the best price.
poor service at a poor price.

3.) A group of businesses that have given control over their prices and selling practices to a small group of people is a
stock.
bond.
trust.

4.) Anti-trust laws have been passed to prevent
trusts and monopolies.
monopolies and franchises.
trusts and franchises.

5.) A board or commission will grant a public utility a ___, which is a contract between the government and the company.
monopoly
deed
franchise

6.) What makes each seller work to provide lower prices and better services to customers?
corporation
competition
company

7.) When one company has exclusive control over a service or product, it is a
monopoly
franchise
corporation

8.) Public utility boards or commissions are used by
the federal government
the state and federal government
the local, state and federal government

9.) Being an innovator, risk-taker, and businessperson are characteristics of
a monopoly
an entrepreneur
a federal employee

10.) Franchises give the utility the right to
establish a monopoly
control prices
hire new employees

financi4 answers:

1.When we see a ball game between two teams, we are seeing
a)competition in action
2.In business, competition will provide
a)the best service at the best price.
3.A group of businesses that have given control over their prices and selling practices to a small group of people is a
a)trust.
4.Anti-trust laws have been passed to prevent
a)trusts and monopolies.

Sorry i dunno the rest:)

James asks…

Which do you prefer to trade…..?

I’m a 19 year old trader. Mainly I trade currencies but I sometimes swing trade stocks and binary options. I’ve dabbled a little in binary options on futures and have made some money but my main bread and butter is currencies. Which do you prefer to trade? Stocks/options, currencies, commodities (futures), bonds, e-minis, etc. I’d like only those who have traded at least two or three of these markets to answer. It makes no sense to answer if you’ve only traded stocks or futures.

*NOTE: I know I’m young and have only been trading for 2 and a half years. I know I have a lot to learn and all that. So I don’t need lectures about how hard certain markets are to trade or how commodities is a “zero-sum gameand all that blah blah. I know all this. I just want to know what you guys prefer to trade*

financi4 answers:

I actually trade based on what the market is doing. If the market is trending up or down really well, I like to swing trade options on specific companies. If it is pretty choppy, I usually daytrade qqqq or spy. Those are what I have the most success with. Recently I started looking into S&P e-minis, but when I day trade I am an uber scalper and sometimes the spreads on the e-mini’s take a little more than doing spy or qqqq. However, I am continuing looking into the e-mini’s and making some tweaks to my system as I am interested in the tax savings they provide.

I have looked at currency, but never felt comfortable putting my money in an unregulated market. Just my preference…

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Your Questions About Invest In Gold Stock

Paul asks…

how to invest in Gold in the form of an equity stock?

Are there any exchange-traded stocks whose prices strictly follow the price of Gold?

financi4 answers:

Yes, there are several gold ETF’s. IAU and GLD are two of them that can be traded as you trade equities. You can even use limit orders on them. Just watch the expense ratio. For more information, go to the AMEX web site and look for ETF.

The alternative is to buy a stock of a gold mining company. There are literally dozens of them, some of the more popular ones being RGLD, ASA, NEM, AUY, GG.

Steven asks…

Is this a good time to invest in Gold producers stocks?

financi4 answers:

That depends on whether you think we will get inflation or deflation. I think we will get the latter. As a result of my bias, it is very easy for me to find evidence of this:
– house prices still falling
– gas prices are coming down, even during the peak driving season
– savings rate is up

Here’s a deflation sign that the mai nstream news competely missed: in current dollar value (not accounting for inflation/deflation), the GDP actually dropped *more* than expected. The better than expected real GDP number was a result of lower than expected inflation: almost 0, actually.

Http://biz.yahoo.com/c/ec/200931.html
Expectations: -1.5% real GDP + 1.0% chain deflator =
-0.5% current dollar GDP

Actual: -1% real GDP + 0.2% chain deflator =
-0.8% current dollar GDP

This is akin to your salary dropping more than you expected, but your buying power dropped less than you expected because prices rose less than you thouhgt they would.

So my opinion is that this is a good time to SELL gold. We’ll see if the stock market can stay up through the Fall.

Mark asks…

What is the best way to buy gold – etfs or physical gold? Also need info on ETFs…?

I am strongly considering investing in gold. But from what I see on here some people on here recommend buying ETFs and some seem to think physical gold is at least okay. Also, is an ETF like a share of gold stock. Please tell me more about ETFs and how they are traded. For all of the above please provide sources and or your credentials below your answer.

financi4 answers:

Gold ETFs: you trade them like funds or stocks. Pros: fast trading, low premium over the actual gold value. Drawbacks: quality of the management matters, fees vary, you really need to read the prospectus (e.g. Some ETFs lease gold to 3rd parties – i.e. The gold is physically not really there), it may not be backed 100% by gold but just 90%, etc.. It really depends -> prospectus and a lot of research. But, gold ETF is taxed as a mutual fund, which can result in slightly lower capital gain tax than physical gold..

Physical gold: you pay a premium (usually $50-70 over spot with 1 ounce coins). But then, you also get the premium back (partly) when selling gold (even if you sell on ebay, you still get more than the spot price – check out http://www.goldprice.org/ebay-gold-prices/). Pros: You hold the physical and you know it’s 100% there, in any type of meltdown. Govt doesn’t need to know you have them or you sold them (purchases under $10,000 or sales up to 25 ounces don’t have to be reported) -> consider capital gains tax. If you buy from BBB A rated dealers you can be sure it’s genuine. Drawbacks: you need a safe place (safe at home or safe deposit $100-300/year), shipping cost when buying online ($30-50). If you believe there may be a serious market crash (exchanges may be down and ETFs not tradeable), this is the better option.

Allocated gold: this is a compromise between an ETF and physical gold. You are a partial owner of a standard 400oz gold bar. The total cost of gold ownership about the same or lower as ETFs. Gold is held as bailment, i.e. You really hold title to it. Only two companies offer this so far: BullionVault and GoldMoney. Pros 24/7/365 instant transactions, low cost, gold is 100% physically there unlike many ETFs. Drawbacks: possibly higher taxation than ETFs or coins..

All in all, my favorite would be probably gold coins (and silver coins too > gold to silver ratio tends to get narrower in crisis times so silver may appreciate more if the dollar hits the fan, plus silver is much more practical – 1oz coin is worth only $20 so you can actually effectively use it for daily transactions etc..) .. But that’s my opinion. I’m very conservative and don’t trust the management of most funds.

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Your Questions About Ppf Disadvantages

Charles asks…

What is better tax saving investment option PPC or NSC?

The best part of PPF was return were tax free however money gets locked for 15 years. . Compared to PPF NSC had one advantage that money was locked for only 6 years but disadvantage was that returns were taxable. With the Effect of DTC on PPF the returns from PPF will be taxable on withdrawal. So now what is better PPF or NSC. Can anyone guide me some investment with guarantied return and tax exempt on returns in India?

financi4 answers:

PPF is better as compare to NSC , further you can also withdraw amount from ppf after 6 years onwards

http://www.simpletaxindia.org/2010/12/ppf-may-be-best-tax-saving-option-just.html

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Your Questions About Stocks And Bonds Game

Ken asks…

Re: 401k, are ‘bond funds’ or ‘cash reserves’ a safer choice right now until the market stabilizes?

I still have a long ways until retirement (approx 30 years), but if the market crashes completely is it possible for my 401k (which is very heavy in stocks right now) to be wiped out completely? I don’t want to play the guessing game and try to short anything, I’m just wondering if the ‘cash reserves’ are safe (or safer) from a market crash? Also, would bond funds lose money if the market surged unexpectedly, or would they simply not gain as much as stocks? I was just looking for a stable place for my 401k savings to rest until the market sorts itself out. I have some IRAs with money in Fidelity Cash Reserves, but my main 401k is locked into Fidelity with these options for bond funds: Fidelity Managed Income Portfolio II Class 2, PIMCO Total Return Inst CL, Vanguard Total Bond Mrkt Index Inv CL. What is the ‘safest’ choice right now???

financi4 answers:

Absolutely Fidelity Cash Reserve. Bond funds are a very bad investment options because the Fed has lowered interest rates to save their buddies on Wall Street. When those interest rates are raised back up to normal levels existing bonds will drop like rocks. But one of the best bond funds on the market today is the PIMCO Total Return.

James asks…

Financial Accounting help!!!?

I am in beginning Accounting in college and I am stuck on this stupid problem.. Please help me!!

Exercise 9-1 Compare financing alternatives (LO1)

Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $24.7 million gaming center:

a. Issue $24.7 million of 6% bonds at face amount.

b.Issue 1 million shares of common stock for $24.7 per share.

Requirement 1:

Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Round your “Earnings per Share” to 2 decimal places. Omit the “$” sign in your response.)

I need to find each of these:

ISSUE BONDS:

Interest Expense:____
Income Before Tax:_____
Income Tax expense (35%):_____
Number of shares: 3,010,000
Earnings per share (Net income / # of shares):_____

ISSUE SHARES:
Everything is the same except it does not ask for Interest expense and the Number of Shares is 4,010,000..

For both the bonds and shares the operating income is 11,600,000

I am not sure if yall can help me with this but if you can please do so..

financi4 answers:

Alternative 1 ( if finance raised by bond issue)
$m (calculation)
Operating Income 11.6
intrest expense: 1.48 (24.7 * 6%)
profit before tax 10.12 (11.6-1.48)
Tax 3.54 (10.12*35)
Profit after Tax 6.58 (10.12-6.58)

earnings per share 2.19 (6.58/3.01)

——————————————————————————
Alternative 2 ( if finance raised by share issue)
$m (calculation)
Operating Income 11.6 (as given in question)
intrest expense: – – (as no bond issue so no interest payment)
profit before tax 11.6
Tax 4.06 (11.6 * 35)
Profit after Tax 7.54 (11.6 – 4.06)
(or net profit)
earnings per share 1.88 (7.54/4.01) as new shares will be issued and will thus increase
numbe of shares and lower earnings per share

Best of luck

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Your Questions About Stocks And Bonds 2012

Steven asks…

First Time Filing Independent Contractor – Further Help Desired?

A few days ago, I posted a question regarding my first-time filing of Estimated Self-Employment taxes. I received several great answers, but they didn’t really agree with one another.

To sum up:
1.I am 23 years old, and my parents will claim me as a dependent on their April 2012 tax filing for this year. I am single, and have no children.

2.I was hired on as an intern for the company I work for, this 3rd quarter, and they have classified me as an independent contractor, per my contract (see quote below).

–>”It is agreed and understood that INTERN is an independent contractor/consultant and that
neither party can assign the Agreement. INTERN will not be eligible for any employee
benefits from COMPANY and COMPANY will make no deductions or payments for
taxes, insurance, bonds or other sums.

INTERN understands and agrees that he/she is not entitled to unemployment
compensation upon termination of his/her relationship with COMPANY. INTERN
further agrees not to seek or file for unemployment with COMPANY.”

3.My contract ends here at the end of September, and I have received $4,900 in income from the company, for the 3rd quarter. During this same quarter, I received $200 in wages from another employer, who did take out Fed, State, Medicare, and SS taxes. – This totals 5,100.

4.As my contract ends, it is a great possibility they will hire me on, as an employee, so this is likely to be my first, and only filing of Self Employment Estimated Taxes for the year. I do not see the need to get a ruling on my employment status – as yes, I know, I am technically not an independent contractor – because, like I said, this will likely be my only filing. I believe this means I should be responsible for both my own taxes, as well as what my employer would have been responsible for.

5.I meet the standard deduction of $5,800.

6.I have no exemptions as I am not blind, handicap, Native American, in the military, etc.

7.I have no withholdings, no earned income credit, additional tax credit, fuel tax credit, refundable American opportunity credit, or other refundable credits.

8.I have had no other income for the entire 2011 year, including income from bonds, the stock market, etc.

9.I did not owe any taxes last year, and received $100 back from the Fed and State, combined.

Answers I received from Initial Posting:
1. “The Tax Lady” gave me some nice calculations, but she used $9,400 instead of $4,900. She suggested I file form SS-8 with the IRS to get my employment status re-classified. As I stated above, I am not sure I wish to do this, as this will likely be my only filing. I also do not wish to get my employer in trouble, especially if they are in the process of considering hiring me on.

2. I received was a calculator from “Bobbie” at http://www.dinkytown.net/java/Tax10402011.html. According to this, I would owe $602, but I feel like this does not include what my employer should have been responsible for. This is based on the 1040ES Form.

3. “Max Hoopla” agrees I should submit the SS-8, but also that I report my wages on Form 8919 instead of Form 1040ES, so I only have to pay half.

4. “Tro” asks if I receive a 1099 on the intern pay. I do not receive this. He asks if I am 25, because I would be eligible for the EIC with the wages, but I am only 23. He says I should use the “Net” amount on Schedule C for the 1040ES, but I do not have any business expenses, so my “net” would be exactly what I earned this quarter.

To these users that answered, I really appreciate your help! However, can anyone take this information, and better clarify what I should do? I still feel lost, and I am hesitant to go to H&R block, for example, to get help… I don’t want to have to pay a hefty fee for this if my required tax payment is small to begin with. THANK YOU!!!!
YOU ALL ARE SO AWESOME!! THANK YOU 🙂 – I wish I could give you all “Best Answer” ratings…

financi4 answers:

Read up on self employment
www.irs.gov schedule C & SE
Read the forms and the instructions
Your company SHOULD in fact issue you a 1099 since they are treating you as an independent contractor, but whether they do or not you are required to file a return and report the income
AND you will owe the self employment taxes EVEN if you don’t owe federal or state income taxes (less than 15%)
You don’t state that you were/are a full time student for at least 5 months of the year–IF you are NOT, your parents CANNOT claim you as you made too much money–if you were/are, they can take you as a dependent
If you are working for the rest of the year, for w-2, you can have EXTRA withholding, and avoid paying quarterly estimated taxes. . . . .and as this is your first (and perhaps only) self employment filing, you may escape serious penalties and interest; but you should consider a 3rd or 4th quarter estimated quarterly tax payment

Donald asks…

What is still considered a safe investment vehicle in today’s market, considering a possible recession?

I looked at all possible investment possibilities, known to me:

Stocks:
in my opinion the upcoming weeks will be crucial, determining, if the rally will continue until 2012, where I believe we will then see a bear market the next years, reducing the S&P to below 2009 standards. Or, it will start next months. In any way, a long rally with the prospect of breaking down any time will not make me sleep well at night and even though the S&P will not go from 124 to 50% overnight, but over the next years, makes think, if there are stocks out there which are really a rock in water, moving slightly in booming and in recession times. In my opinion, not, but I am curious to hear thoughts.

Hedge Funds:
They sound a “safe” investment to me. However, I heard and read several times that they are not really safe either. Why that is I do not know. The idea of a hedge fund is to hedge risks, even in recession times.

Bonds:
In financial classes I learned having a diversified portfolio, serves to capital preservation. However, are bonds still a save investment with all the governmental debts coming finally to haunt them? With Ireland defaulting, next Greece, Italy, probably soon upcoming Spain, Germany and France already stating that they are being affected, in major cases probably even the countries overseas in the west, and Asia. If I were to pick bonds, I would pick any bonds of a country with a low debt to gdp ratio. In the 1st sense, I am looking to not loose any more money, as I had before September this year, where I had the majority of my investments in stocks; making money is the next on the horizon and another thing itself, which I do not want to be addressed.
Looking for bonds, adjusted for inflation, I also curious to hear ideas. Perhaps, those from Lichtenstein and China seem reasonable to me: http://en.wikipedia.org/wiki/List_of_sovereign_states_by_public_debt
If the data is right Lichtenstein in deed has no debt at all, whereas China looking ok, being the coming economic powerhouse having only 5% debt of GDP; still, I do not trust communist statistics, where their grass is always green.

Currencies:
I live in Europe. The currency could break down, or it could not. I do not know, and we will find out. I was thinking about changing some euro into US dollars. However, the prospect of the US having immense debt of 15 billion, is not looking nice. So I looked at countries with low debt. Lichtenstein, Cayman Islands, Kuwait with about 50% debt to gdp, but the strongest currency in the world. Lichtenstein, would fall out, because it’s currency is pegged to the Swiss Franc, with Switzerland having a very high debt to dgp ratio, too. Now Cayman’s Dollar and Kuwait are next. Kuwait keeps it currency naturally high, what will happen to the currency in a global economy I don’t know. But I had a look at three graphs: EUR to USD, KYD, KWD, the last 3 all having the same trend overall the past years. So choosing a save currency is hard and I am curious about opinions.

Real estate:
Housing/real estate market crisis fresh from 2009.. How hard it will be affected in a recession I do not know. Still I would not go about to buy an apartment or land, only because a recession is on the run the next years, also considering real este is not very liquid.

Gold:
Another investment vehicle I learned in school, and I was told to be used in times of high inflation and recession. It seems to me Gold is no longer the save heaven it used to be, same with bonds overall, with countries defaulting. The point here is though, I heard several times, Gold is a bubble, overpriced, and me finally looking at the graphs and indicators, I could see where it has reason to drop 42 points (GLD) the next couple months, and even lower to the point of 4 years ago. The thing is this though, if we continue the rally, Gold might appreciate due to increased fears of a recession, or go with the flow of the S&P 500; or people could start selling Gold due to it being overpriced. If we were to begin the recession it would seem only likely that gold would increase in price, or it could decrease, too, due to being overpriced.

Options/Futures:
In my opinion options and Futures are an investment vehicle of speculation and my intention in this post is not to speculate but to invest, meaning finding things I do not have to worry about for a year or two.

Overall I think Hedge funds, and bonds seems a save bet to me. I am very curious of the comments, and opinions of other’s.

financi4 answers:

Stocks:
The best opportunities are now in european stocks right now, they have been hammered by politics and debt problem but they are still good companies over there and they still making money.

Hedge funds:
They are still good for diversification purposes even if in general the performance is less than 10/20 years ago. You have a lot of risk with hedge funds since they are still less regulated than mutual funds (you have more operational risk, strategies drift risk, ponzi stuff…). Even if it is more difficult to invest in hedge funds for an individual investor (not qualified), you can still do it through ETFs.

Bonds:
It is true that because of gov debts, gov bonds are less secure even triple AAA (look at the Germany and France). Furthermore the interest are very low for the moment, as soon as they rise you will loose money on your bonds portfolio.
I won’t in Lichtenstein even if it has no debt, it is a very small country and even a small problem can rip out this country (look at Ireland with it’s banking system)

Currency:
It is really complicated making money long term with currencies. Why there are so few currency fund worldwide? Because even professional can make money long term on Forex.

Gold
Gold is an insurance. But right now the price for insurance is way to high because of the bubble.

Option/futures:
It is mainly use for speculation but you can use them to also hedge your portfolio. You are right it is only for short term purposes.

Ken asks…

Your NEO (BHO) is speeding things up!?

Prediction one. The twenty-five-year equities bubble pops in 2009. U.S. and foreign equities markets will stop treading water and realign with economic reality. Stock prices will cease to reflect the “greater fool” mentality and will return to being a function of dividend yields, which have long been miserable. The S&P 500 will sink below 500. In a bid to stem the panic, the government will enforce periodic “stock market holidays”, and will vastly expand the scope of its short-selling prohibitions—eventually banning short-selling altogether.

Prediction two. With public pension systems and tens of millions of 401k holders virtually wiped out—and with the Baby Boomers retiring en masse—there will be tremendous pressure on the government to get into the stock market in order to bid up prices.

Therefore, sometime in 2010, the Federal Reserve will create and loan out hundreds of billions of fresh dollars to the usual well-connected suspects, instructing them to buy up stocks on the public’s behalf. This scheme will have a fancy but meaningless name—something like the “Taxpayer Assurance Equities Facility”. It will have no effect other than to serve as buyer of last resort for capitulating smart-money types who want to get out of stocks entirely.

Prediction three. Millions of new retirees—including white-collar people with high expectations for a Golden Retirement—will be left virtually penniless. Thousands will starve or freeze to death in their own homes. Hundreds of thousands will find themselves evicted and homeless, or will have to move in with their less-than-enthusiastic children. Already strained by the rising tide of the working-age unemployed, state and local welfare services will be overwhelmed, and by 2012 will have largely collapsed and ceased to function in many parts of the country.

Prediction four. “Quantitative easing” will fail to restart previous patterns of lending and consumption. As the government sends out additional “rebate” checks and takes ever-more drastic measures to force banks to lend, hyperinflation could take hold. However, comprehensive debt relief via a devaluation of the dollar is even more likely. This would entail the government issuing one “new” dollar for some greater number of “old” dollars—thus reducing both debts and savings simultaneously. This would make for a clean slate a la Fight Club.

As there are many more debtors than savers in the U.S., the vast majority would support devaluation. The Chinese and other foreign holders of our bonds would be screaming mad, but unable to do anything. Every country that has not found a way out of dollar-denominated reserve assets by 2012 will see its reserves eliminated.

Prediction five. The government will stop pretending that it can finance continuous multi-trillion-dollar deficits on the private market. By late 2010, the sole buyers of new U.S. Treasury and agency bonds will be the Federal Reserve and a few derelict financial institutions under government control. This may or may not lead to hyperinflation. (See prediction four).

Prediction six. As the need for financial industry paper-pushers declines and people have less money to spend on lawyers and Starbucks (SBUX), unemployment will rise until the private sector has eliminated all of its excess capacity and superfluous or socially needless jobs. The government’s narrow unemployment figure (U3) will rise into the high teens by late 2010. The government’s broader unemployment figure (U6) will cease to be reported when it reaches 25 percent—it will simply be too embarrassing. Ultimately, one in three work-eligible Americans will be unemployed, underemployed, or never-employed (e.g. college grads permanently unable to find suitable work).

Prediction seven. With their pension dreams squashed, and their salaries frozen or cut, police and other local government workers will turn to wholesale corruption in order to survive.

Article on Seeking Alpha

+++++++++++++++++++++++++++++++++++++++++++++++++++

I hate to be a downer, but how on earth are we ever going to get out of the national debt. BHO added ~$2trillion this year. That is four times Bush’s worst deficit.

He isn’t NEO. He isn’t the one. He is speeding up the demise of the USA. Is it in the name of reparation?

This is NOT hope or change it is more of the same with a greater magnitude.

financi4 answers:

It’s too late for that, start stocking up on SPAM and condensed milk

Charles asks…

can some one summarize this article? “US economy in transition from recovery to expansion phase”?

Stocks advanced yet again last week in light of rising optimism about economic growth, strong corporate earnings and a continued fading of the fears that kept many investors away from risk assets over the past couple of years. For the week, the Dow Jones Industrial Average climbed 1.5% to 12,273, the S&P 500 Index rose 1.4% to 1,329 and the Nasdaq Composite advanced 1.5% to 2,809.

In our view, while the rally has been strong, it is not yet exhausted. Although a short-term correction could take place at any time, equities remain relatively inexpensive and we believe the bull market should continue.

Economic growth in the United States has continued to improve in recent weeks. Business confidence measures have moved to multi-year highs, sales levels are rising, profits are improving and business investment levels remain robust.

The economy is clearly transitioning from a recovery phase to an expansion phase. The difference between the two is that the former is dependent on monetary and fiscal stimulus while the latter is based on improvements in demand from the consumer sector as well as on companies’ top-line growth and growing trends in capital investment — trends that are more self-sustaining.

It is important to remember, however, that the significant long-term issues that drove the economy into recession (the fiscal crisis and resultant deleveraging) have not gone away and will still take some time to address. It is clear that the launch of QE2 in late 2010 as well as the extension of the Bush-era tax cuts (plus additional sweeteners) has helped lift near-term economic prospects, but what happens in the second half of the year and beyond remains an open question.

The murkiness of the long-term outlook combined with the fact that economic growth expectations have improved result in some additional risks. At present, expectations for 2011 economic growth have risen to around the 3.5% level, meaning that it will be an increasing challenge for data releases to result in positive surprises.

It is extremely difficult at this point to make any sort of assessment as to what the economy will look like in 2012, but we expect 2012 to be a year marked by a Federal Reserve that is slowly working to normalize rates, by emerging economies that are continuing to experience faster growth levels than the rest of the world, by a political backdrop that will make President Obama eager to promote growth-friendly policies and possibly by a housing market that is able to make some contributions to economic growth levels.

One factor that we do not believe will be a significant issue in the year ahead is inflation. Rising food and energy prices have received their share of headlines, and while these factors are highly significant in emerging economies (where purchases of food and energy make up a much larger percentage of consumer spending), they are less so in the developed world. There is still a great deal of slack in the world’s developed market economies (which can be seen in the labor markets), and we do not believe we need to be overly concerned about inflation.

Given the improving economic backdrop, it should not be a surprise that we are seeing a broad asset allocation shift among investors from bonds toward equities. Some observers have suggested that the recent inflows into equity mutual funds mean that the rally in stocks may be coming to an end, but we do not share that view and continue to believe that equities are a good place for most investors to be.

From a geographic perspective, we continue to believe that US stocks are very well positioned relative to alternatives. US economic growth is continuing to improve, while Japan and Europe are continuing to face some problems. Emerging markets do represent some attractive opportunities, but in some cases (such as China) growth levels are too high and inflation is becoming a problem, causing authorities to ramp up tightening efforts.

For many investors, the shift into equity markets is still in the early stages and equity valuations are hardly stretched, suggesting that the upward moves have further to run. While pullbacks and corrections will no doubt occur along the way, we believe they should be short and shallow and should be taken advantage of to add to positions.

financi4 answers:

I’ll summarize it for you…

It’s all lies. There is no recovery.

After the treason of “globalism” became accepted, all traditional financial rules and indicators mean nothing. This recession was CAUSED by the big corporations making more money using foreign slave labor. The health of these corporations is no longer an indication of the nation’s general economic health. Actually, the opposite is more likely. This crash started at the consumer end. The rich got richer and the poor could no longer afford to pay their debts. NOTHING HAS CHANGED. Get ready for round 2.

There is little growth now and no reason to expect any. Stock prices are being held up by “bailout” money stolen from taxpayers and the expectation of inflation. The stocks will simply be worth more devalued dollars, even though there is little growth because consumers still can’t get good paying jobs like they could in the past. NOTHING HAS CHANGED. What caused the first part of the recession will continue to cause more problems. Basically, the parasite has killed the host and workers can no longer support a growth economy due to “globalism” and slave labor.

The “elite” have consolidated the world’s wealth and they are not going to give it back. They will use each crisis they caused to take more control and more of our freedoms in order to “rescue” us. The control they already have over “our” government is pretty plain to see. Everything is being done AGAINST the will of the people and MANY unconstitutional things are being done. By some strange coincidence, a police state is also being built at this time to protect us from “terrorists”. Let me tell you… The “terrorists” they are getting ready to control are you and me when we’re even more broke and pissed off. The timing is no coincidence and building 7 did not implode in it’s own footprint from small fires.

There is also still a GIANT BLACK HOLE of worthless derivatives held and traded by the banks. The truth is, they are all insolvent and they will continue to find more ways to steal from us and try to fill the black hole. There will be more bailouts, schemes for selling “carbon credits”, etc…

The price of gold is just $2.00 off the all-time high at this moment. This is no sign of recovery! This is a sign of a world in financial turmoil, where all currencies are losing value in unison (intentionally to make it less noticeable).

If you want to hear more truth, I suggest you hit YouTube and listen to anything Max Keiser has to say…

Richard asks…

CAN SOMEONE HELP ME WITH SOME FINANCIAL ACCOUNTING QUESTIONS …?

1

I am working on a 100 question test and I am stumped on the following 8 questions … can someone please help me answer them so I can research and see how you got the answer, trial by error?

On May 1, 2011, Stanton Company purchased $50,000 of Harris Company’s 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Stanton received its first semiannual interest. On February 1, 2012, Stanton sold $40,000 of the bonds at 103 plus accrued interest.
Blanton Corporation purchased 35% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and paid cash dividends. What journal entry would Blanton Corporation use to record the dividends it receives from Worton Corporation?

A) debit Investment in Worton Corporation; credit Cash
B) debit Cash; credit Investment in Worton Corporation
C) debit Cash; credit Dividend Revenue
D ) debit Investment in Worton Corporation; credit Income of Worton Corporation

– – –
#2

On May 1, 2011, Stanton Company purchased $50,000 of Harris Company’s 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Stanton received its first semiannual interest. On February 1, 2012, Stanton sold $40,000 of the bonds at 103 plus accrued interest.
The equity method of accounting for investments

A) requires the investment be increased by the dividends paid by the investee
B) requires the investment be increased by the reported net income of the investee
C) requires the investment to be reported at its original cost
D) requires a year-end adjustment to revalue the stock to lower of cost or market

– – –
#3

Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the receipt of interest on the next interest payment date would be:

A) Debit: Cash $4,000; Credit: Interest Receivable $4,000
B) Debit: Cash $2,500; Credit: Interest Revenue $2,500
C) Debit: Cash $4,000; Credit: Interest Receivable $1,500 and Interest Revenue $2,500
D) Debit: Cash $4,000; Credit: Interest Revenue $4,000

– – –
#4

On May 1, 2011, Stanton Company purchased $50,000 of Harris Company’s 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Stanton received its first semiannual interest. On February 1, 2012, Stanton sold $40,000 of the bonds at 103 plus accrued interest.
For accounting purposes, the method used to account for investments in common stock is determined by

A) whether the acquisition of the stock by the investor was “friendly” or “hostile.”
B) the amount paid for the stock by the investor.
C) the extent of an investor’s influence over the operating and financial affairs of the investee.
D) whether the stock has paid dividends in past years.

– – –
#5

On May 1, 2011, Stanton Company purchased $50,000 of Harris Company’s 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Stanton received its first semiannual interest. On February 1, 2012, Stanton sold $40,000 of the bonds at 103 plus accrued interest.
The journal entry Stanton will record on February 1, 2012, will include:

A) a debit to Cash for $41,200.
B) a credit to Interest Receivable for $500.
C) a credit to Gain on Sale of Investments for $1,200.
D) a credit to Interest Revenue for $1,200.

– – –
#6

Jarvis Corporation makes an investment in 100 shares of Saxton Company’s common stock. The stock is purchased for $40 a share plus brokerage fees of $300. The entry for the purchase is:

A)
Stock Investments – Saxton Company = 4,000
Brokerage Fee Expense = 300
Cash = 4,300

B)
Stock Investments – Saxton Company = 4,300
Cash = 4,300

C)
Stock Investments – Saxton Company = 4,000
Cash = 4,000

D)
Cash = 4,000
Stock Investments – Saxton Company = 4,000

– – –
#7

On May 1, 2011, Stanton Company purchased $50,000 of Harris Company’s 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Stanton received its first semiannual interest. On February 1, 2012, Stanton sold $40,000 of the bonds at 103 plus accrued interest.
What are the total proceeds from the February 1, 2012 sale?

A) $41,700
B) $40,600
C) $42,000
D) $41,600

– – –
#8

On May 1, 2011, Stanton Company purchased $50,000 of Harris Company’s 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Stanton received its first semiannual interest. On February 1, 2012, Stanton sold $40,000 of the bonds at 103 plus accrued interest.
The journal entry Stanton will record on June 30, 2011, will include:

A) a debit to Cash for $3,000.
B) a credit to Interest Revenue for $2,000.
C) a credit to Interest Receivable for $1,000.
D) a debit to Cash for $2,000.
It has been brought to my attention that I should have broken these up for points purposes … I have never used this before, so i was not aware of how the points worked … Please bare with me this time around … in the future I will break up questions into “bite sizes” …

financi4 answers:

You should break up your question into bite-size ones. It’s not fair for one person to have to answer all 8 just for 2 points

Joseph asks…

Lib Logic: No payback from Solyndra means payback in full, right?

Solyndra’s bankruptcy assets sold for less than 1% of all loans (government and private), why are libs saying the loan was repaid?
http://finance.fortune.cnn.com/2012/03/07/solyndra-repayment-debate-was-pointless/?iid=SF_F_LN&section=money_topstories

The government has yet to see a dime in payback, and most likely wont because other investors have priority over the government picking from the final assets.

This is an example of the lib comments on Solyndra Payback:
Amazingly (For the first time ever seen by the Treasury Dept) This company paid back people in this order.
Investors !
Bond holders
Stock holders
Nice Job Obama

financi4 answers:

Because liberals live in a world of lies, delusions, hypcrisy, and outright denial of the obvious.

Thomas asks…

Here is a comparative balance sheet for Matsui Company: accounting homework?

I need help with my accounting homework!!!! anyone???

Here is a comparative balance sheet for Matsui Company:

MATSUI COMPANY
Comparative Balance Sheet
December 31

Assets20122011
Cash$68,000 $22,000
Accounts receivable85,000 76,000
Inventories170,000 189,000
Land80,000 100,000
Equipment260,000 200,000
Accumulated Depreciation
(66,000)

(32,000)

Total
$597,000

$555,000

Liabilities and Stockholders’ equity
Accounts payable$39,000 $47,000
Bonds payable150,000 200,000
Common stock ($1 par)216,000 174,000
Retained earnings
192,000

134,000

Total
$597,000

$555,000

Additional information:

Net income for 2012 was $93,000.
Cash dividends of $35,000 were declared and paid.
Bonds payable amounting to $50,000 were redeemed for cash $50,000.
Common stock was issued for $42,000 cash.
No equipment was sold during 2012.
(a)Complete the statement of cash flows for 2012 using the indirect method. (If the amount reduces cash flow put either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.)

financi4 answers:

Operating Activities
93,000 Net Income
– 9,000 Increase in Account Receivable
+ 19,000 Decrease in Inventories
+ 34,000 Depreciation Expense
– 8,000 Decrease in Accounts Payable
129,000 Cash Flow from Operating Activities

Investing Activities
+20,000 Sale of Land
-60,000 Purchase of Equipment
-40,000 Cash Flow from Investing Activities

Financing Activities
-35,000 Dividends
-50,000 Bonds Redeemed
+42,000 Issued Common Stock
-43,000 Cash Flow from Investing Activities

129,000 – 40,000 – 43,000 = 46,000 Total Cash Flow
46,000 + 22,000 Beginning Cash Balance = $68,000 Ending Cash Balance

Chris asks…

Accounting: Problem 17-9?

___________________________________________________________

MINNIE HOOPER COMPANY
Comparative Balance Sheets
December 31
___________________________________________________________

Assets ————————————— 2012————– 2011
Cash —————————————- $102,700———- $33,400
Accounts receivable———————– 60,800————- 37,000
Inventory ————————————- 126,900———- 102,650
Investments ———————————- 79,500——— 107,000
Plant assets ——————————– 315,000 ——– 205,000
Accumulated depreciation ————- (44,500) ——– (40,000)
Total ———————————————– $ 640,400 —— $ 445,050

Liabilities and Stockholders’ Equity
Accounts Payable —————————-$ 57,700 ———-$ 48,280
Accrued expenses payable—————— 15,100 ————- 18,830
Bonds Payable ———————————- 145,000 ———— 70,000
Common Stock ——————————– 250,000 ———– 200,000
Retained earnings —————————— 172,600 ———– 107,940
Total ——————————————- $ 640,400 ———– $ 445,050

___________________________________________________________

MINNIE HOOPER COMPANY
Income Statement
For the Year Ended December 31, 2012
___________________________________________________________

Sales revenue$297,500
Gain on sale of plants assets 5,000
302,500

Less:
Cost of goods sold$ 99,460
Operating expenses, excluding
Depreciation expense 19,670
Depreciation expense 30,500
Income Taxes 37,270
Interest expense 2,940 189,840
Net income$112,660

Additional information:
1.New plant assets costing $146,000 were purchased for cash during the year.
2.Investments were sold at cost.
3.Plant assets costing $36,000 were sold for $15,000, resulting in a gain of $5,000.
4.A cash dividend of $48,000 was declared and paid during the year.

INSTRUCTIONS

Prepare a statement of cash flows using the indirect method.

financi4 answers:

Using the template I gave you, just plug in the amounts for these items.

Net income $112,660
Depreciation expense 30,500
Accounts Payable —————————-$ 57,700 ———-$ 48,280
Accrued expenses payable —————— 15,100 ————- 18,830
Accounts receivable———————– 60,800————- 37,000
Inventory ————————————- 126,900 ———- 102,650
Common Stock ——————————– 250,000 ———– 200,000
Bonds Payable ———————————- 145,000 ———— 70,000

1. New plant assets costing $146,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36,000 were sold for $15,000, resulting in a gain of $5,000.
*Note: The gain is subtracted under operating activities.
4. A cash dividend of $48,000 was declared and paid during the year.

If you did it correctly, your cash flow should come out to the same as the increase in cash.
102,700 – 33,400 = 69,300

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