Sauder Corporation reports the following information: Net income $380,000 Depreciation expense 70,000 Increase in accounts receivable 30,000 Sauder should report cash provided by operating activities of A. $340,000. B. $280,000. C. $420,000. D. $480,000.

Answers

Answer 1
Answer:

Answer: D. $480,000.

Explanation: OCF ( operating cash flow) is usually calculated using the following formula: Operating Cash Flows = Net income + Noncash Expenses ( Depreciation Expense) + Changes in Working Capital.

Net income =$380,000

Depreciation = $70,000

Increase in accounts = $30,000

OCF = $380,000 + $70,000 + $30,000

= $480,000

Answer 2
Answer:

Answer:

Cashflow statement gives the true state of affairs of a business with respect to cash and cash equivalent. Whereas a company may report good profit, it may be running an unhealthy business because of its poor management of cash resources. As a result, such a business may run into troubles.

Cash from operating Activities is a healthy way of evaluating the core operations of the business, to make good investment judgment around the profit reported.

Net Income = $380,000

Add Depreciation (non- cash expense) = $70,000

Deduct Increase in Accounts receivables (non-cash income) = $30,000

Cash from operations = $420,000.


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A. The August 31 balance shown on the bank statement is $9,799. b. There is a deposit in transit of $1,247 at August 31.
c. Outstanding checks at August 31 totaled $1,870.
d. Interest credited to the account during August but not recorded on the company's books amounted to $115.
e. A bank charge of $37 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $625 had been recorded as a disbursement of $367.
g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,356.

Required:
Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.

Answers

Answer:

Part a.

No entry

Part b.

Debit  : Deposits in Transit $1,247

Credit : Bank Reconciliation Statement $1,247

Increase the Bank Statement Balance

Part c.

Debit  : Bank Reconciliation Statement $1,247

Credit : Out Standing Checks $1,870

Decrease theBank Statement Balance

Part d.

Debit  : Cash $115

Credit : Interest received $115

Interest credited in Bank Statement not recorded

Part e.

Debit  : Bank Charges $37

Credit : Cash $37

Recording of Bank Charges in the Books

Part f.

Debit  : Accounts Payable $258

Credit : Cash $258

Payment to Supplier understated by $258

Part d.

No entry

Explanation:

Corrections and Adjustments may be either to correct the Cash Book or the Bank Statement Balance as above.

The December 31, 2018, balance sheet of Whelan, Inc., showed $136,000 in the common stock account and $2,610,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $146,000 and $2,910,000 in the same two accounts, respectively. The company paid out $141,000 in cash dividends during 2019.Required:

What was the cash flow to stockholders for the year?

Answers

Answer:

$169,000 negative

Explanation:

Equity = Common stock + Additional paid in surplus

Total equity at beginning= Common stock + Additional paid in surplus

=136,000+2,610,000=$2,746,000

Total equity at end= Common stock + Additional paid in surplus

=146,000+2,910,00)=$3,056,000

Hence new equity = Total equity at End - Total equity at beginning

3,056,000-2,746,000=$310,000

Cash flow to stockholders = Dividends paid - New equity

= 141,000-310,000

= -169,000

=$169,000 negative

Individuals may become shareholders by buying common stock in corporations through brokers or directly from the company (if they offer a direct investment plan). In many countries, corporations may also offer employee stock options as a benefit for workers.

Answers

After a company goes public through an initial public offering (IPO), its stock becomes available for investors to buy and sell on an exchange.

What are you called when you own shares of a corporation's stock?

An individual or organisation that owns shares or stocks in a firm is referred to as a shareholder. Investors have the right to partial ownership of a certain firm when they own shares or stocks in that company. If the corporation is in trouble, shareholders may earn dividends and have some protection from liabilities.

The primary distinction between preferred and common stock is that common stock grants stockholders voting rights, whilst preferred stock does not. Preferred shareholders get dividend payments prior to regular shareholders since they have preference over the company's income.

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A cafeteria buys muffins daily. Demand varies Uniformly between 30 and 50 muffins per day. The cafeteria pays $.20 per muffin and charges $.80 per muffin. Unsold muffins are discarded at the end of the day. A) Find the optimal stocking level and the stock-out risk for that quantity.

Answers

Answer:

The optimal stocking level is 45 muffins.

Explanation:

First we have to calculate the Overage cost Co = Purchase price - Salvage value = $0.2 - 0 = $0.2

Then the Underage cost Cu = Selling price - Purchase price =$0.80 - $0.2 = $0.60

Service level = Cu / (Cu + Co) = $0.60/($0.60+$0.2) = $0.75

Hence, optimal stocking level = Minimum demand + Service level *(Maximum demand - Minimum demand)

optimal stocking level = 30 + 0.75*(50-30) = 45

The optimal stocking level is 45 muffins.

Optimal stocking level = 68.75 Muffins

he following information relates to Jay Co.'s accounts receivable for 2004: Accounts receivable, 1/1/04 $650,000 Credit sales for 2004 2,700,000 Sales returns for 2004 75,000 Accounts written off during 2004 40,000 Collections from customers during 2004 2,150,000 Estimated future sales returns at 12/31/04 50,000 Estimated uncollectible accounts at 12/31/04 110,000 What amount should Jay report for accounts receivable, before allowances for sales returns and uncollectible accounts, on December 31, 2004?

Answers

Answer:

$1,085,000

Explanation:

Given that,

Accounts receivable, 1/1/04 = $650,000

Credit sales for 2004 = 2,700,000

Sales returns for 2004 = 75,000

Accounts written off during 2004 = 40,000

Collections from customers during 2004 = 2,150,000

Estimated future sales returns at 12/31/04 = 50,000

Estimated uncollectible accounts at 12/31/04 = 110,000

Receivable before allowances for sales returns and uncollectible accounts:

= Accounts receivable, 1/1/04 + Credit sales for 2004 - Accounts written off during 2004 - Collections from customers during 2004 - Sales return

= $ 650,000 + $2,700,000 - $40,000 - $2,150,000 - 75,000

= $1,085,000

What is one course of action available in every decision making process?a. Respond in a way which will have only positive consequences
b. Respond in a way which will have no negative consequences
Choose to do nothing about the issue
d. None of the above
Please select the best answer from the choices provided
А

Answers

Answer:

Answer C

Explanation: