Answer:
Prepare the Cash flow from Operating Activities Section as follows :
Net income 62,000
Adjustments for Non - Cash Items :
Depreciation - Land, buildings, and equipment 38,000
Adjustment for Working Capital Items :
Increase in Accounts Receivable (12,950)
Increase in Inventory (21,200)
Decrease in Prepaid Insurance 620
Decrease in Accounts payable (73,530)
Decrease in Salaries payable (5,700)
Decrease in Notes payable (51,200)
Net Cash from Operating Activities (63,960)
Explanation:
Note that the question has requested use of indirect method for preparation of cash flows from operating activities.
a. Compute Selma's accrual basis gross receipts for 2015.
b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2020 was $1,300,000. At the end of 2019, she had merchandise on hand with a cost of $150,000. At the end of 2020, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2015.
Answer:
a. $1,350,000
b. $200,000
Explanation:
The computation is shown below;
a. Accrual basis gross receipts for the year 2015 is
= Cash receipts + account receivable from year 2015 - collection in account receivable - proceeds of bank loan
= $1,400,000 + $250,000 - $200,000 - $100,000
= $1,350,000
b. Now the Gross income or profit is
As we know that
Gross profit is
= Sales - cost of goods sold
= $1,350,000 - ($1,300,000 + $150,000 - $300,000)
= $1,350,000 - $1,150,000
= $200,000
Selma's accrual basis gross receipts for 2015 would be $1,350,000, and her gross income (profit) from merchandise sales for the same year would be $200,000.
To calculate Selma's accrual basis gross receipts for 2015, we need to adjust her cash receipts, which totals up to $1.4 million. The receipts include $200,000 that was actually earned in 2014 (collected in 2015) and a $100,000 bank loan that does not count as earned revenue. So, we subtract these from the total receipts: $1,400,000 - $200,000 - $100,000 = $1,100,000. And we add the amounts receivable at the end of 2015 which is $250,000. So, Selma's accrual basis gross receipts for 2015 is $1,350,000 ($1,100,000 + $250,000).
For the second part of your question, Selma's gross income (profit) from merchandise sales for 2015 can be computed by calculating the cost of goods sold (COGS) and subtracting this from the gross receipts calculated above. Start by adding the cost of merchandise on hand at the end of 2019 ($150,000) to the purchases made in 2020 ($1,300,000). This gives us a presupposed cost of goods available for sale. We then subtract the cost of the merchandise on hand at the end of 2020 ($300,000). The COGS is, therefore, $1,150,000. Subtraction the COGS from the gross receipts gives us a gross income of $200,000 ($1,350,000 - $1,150,000).
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Answer:
The amount that should be in its savings account is $40,554.48.
Explanation:
To calculate this, formula for calculating the present value of an ordinary annuity is employed as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value of or amount in the saving =?
P = yearly scholarship payment = $5,000
r = interest rate = 4%, 0.04
n = number of years = 10
Substitute the values into equation (1) to have:
PV = $5,000 * [{1 - [1 / (1 + 0.04)]^10} / 0.04]
PV = $5,000 * [{1 - [1 / 1.04]^10} / 0.04]
PV = $5,000 * [{1 - 0.961538461538461^10} / 0.04]
PV = $5,000 * [{1 - 0.675564168825795} / 0.04]
PV = $5,000 * [0.324435831174205 / 0.04]
PV = $5,000 * 8.11089577935512
PV = $40,554.48
Therefore, the amount that should be in its savings account is $40,554.48.
The present value of an annuity formula can be used to determine the amount needed in the savings account.
To determine how much should be in its savings account to fund one $5,000 scholarship each year for the next 10 years, we can use the formula for the present value of an annuity. The formula is:
PV = PMT * ((1 - (1 + r)^(-n)) / r)
Where PV is the present value, PMT is the payment amount, r is the interest rate, and n is the number of periods. In this case, the payment amount is $5,000, the interest rate is 4% (or 0.04), and the number of periods is 10. Plugging these values into the formula, we get:
PV = $5,000 * ((1 - (1 + 0.04)^(-10)) / 0.04) = $42,179.84
Therefore, North Carolina State University's Irwin College of Engineering should have $42,179.84 in its savings account to fund one $5,000 scholarship each year for the next 10 years.
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Answer:
Mail and online research.
Explanation:
Since in the given situation, it can be seen that the company does not have much amount to be incurred on the research so the best option is to do online research and mail as the person research and the telephone research becomes expensive as compared to the mail and online research
Therefore the above should be the answer
Answer:
Average revenue is greater than marginal cost when the monopolist is maximizing total profits or minimizes losses. Marginal revenue decreases as average revenue decreases.
Explanation:
A monopolist controls all of the markets for a particular good or service. A monopolist does not need to improve their product much because customers have no other alternatives.
In the case of pure monopoly, no close substitutes for the product exist and there is one seller.
Average revenue is greater than marginal cost when the monopolist is maximizing total profits or minimizes losses. Marginal revenue decreases as average revenue decreases.
Probably the employee will be entitled to reintegration into the company. The employee probably lost her job because she exposed the discriminatory employment conditions of blacks in that company. In this case, it is possible for the employee to take legal action for retaliation against her rights, protected by Title VII.
Answer:
The standardization of the production process for higher output levels with fewer model changes
Explanation:
The standardization of production process has the potential to reduce the unit cost, though it may also reduce the flexibility necessary for the production of different products in a timely way. Consequently, this may reduce the product value on the part of customer.
A low-cost activity not suitable for a differentiator could be bulk purchasing of standard components as it may limit product uniqueness. Differentiation instead needs activities like design innovation, market research, and the use of costly, unique resources, possibly involving international trade and evaluating different parts of the value chain.
A low-cost activity that may not be appropriate for a differentiator could be bulk purchasing of standard components. While this approach can help a company minimize costs, it may prevent differentiation if the relied-upon components are standard and widely used, thereby limiting a product's uniqueness. Focusing on differentiation requires a company to focus on activities such as product differentiation, creating unique aspects of its product that allow it to stand out from competitors. These activities can be more expensive because they often involve design innovation, in-depth market research, and costly resources or materials. Particularly, when a company engages in international trade, differentiation may involve slicing up the value chain through tasks such as specialized manufacturing or tailoring marketing approaches to specific regional markets.
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