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2 years ago

Comparable balance sheets are presented below:

1 answer:

6 0

The example of how to Prepare a statement of cash flows using the indirect method is given in the image attached.

The others are:

Note that when the operating cash flow is aided by profitable operations, it may not be sustainable. e.g. operating cash gotten from an outsized reduction in accounts receivable cannot be kept or handled.

The major sources and uses of cash are:

Operating
Investing
Financing

Operations are being financed via the day to day normal operations that brings income. Example are cash receipts from revenue and cash shared to pay for expenses.

The risks of a company going forward includes:

Fraud
employee misconduct
Misappropriations of funds, etc.

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The income statement for the Sage Hill Inc. for the month ended July 31 shows Service Revenue $17,470, Salaries and Wages Expens

kirza4 [7]

Answer along with its Explanation:

The profit for the year is calculated as under:

Profit for the year = Revenue - Salaries and Wages - Maintenance and Repairs Expense - Income Tax Expense

Profit for the year = $17,470 - $8,870 - $3,370 - $1,470 = $3,760

Now the entry would be to close the expense and income accounts for the year and carry forward the difference (Profit for the year) to retained earnings.

The entry would be as under:

Dr Service Revenue $17,470

Cr Salaries and Wages Expense $8,870

Cr Maintenance and Repairs Expense $3,370

Cr Income Tax Expense $1,470

Cr Retained Earnings (Balancing figure) $3,760

The recording of the dividends (A decrease in Capital) would be decrease in the retained earnings which is given as under:

Dr Dividends $1,760

Cr Cash Balance $1,760

The waiving off this amount will be by debiting the retained earnings and crediting dividends paid.

Dr Retained Earnings $1,760

Cr Dividends $1,760

7 0

4 years ago

A Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.25 per share at the end of next yea

g100num [7]

Answer:

$38.85

Explanation:

The computation of the maximum price would be willing to pay is shown below:

Current price = Future dividend × Present value of discount factor (rate of interest , time period)

= $1.75 ÷ 1.09 + $2.25 ÷ (1.09^2) + $42 ÷ (1.09^2)

= $1.61 + $1.89 + $35.35

= $38.85

Simply applied the above formula so that the maximum price could come

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3 years ago

Highlight four ways of improving productivity of labour as a factor of production

UNO [17]

Answer:

Following are the four ways for improving the productivity of the labour is given below

Explanation:

If we give the proper resource assignment to each worker at the proper time we will increase the productivity of the labor .
Increasing the skills by guiding the labor to the latest technology so they know the latest or the current technology they will increase the productivity .
If we enhancing the physical capital it means if we dependent on the machinery they will increase the productivity .
Giving the incentive to labor at the particular interval of time we will increase the productivity.

3 0

3 years ago

EDGAR, the Electronic Data Gathering. Analysis, and Retreival system, performs automated collection, validation, indexing, accep

Anon25 [30]

Answer:

Avon Products Inc.

All Amounts in $ million

Gross Trade Accounts Receivable at the end of the year are $ 443 million + $ 86.7 million = $ 529.7 million

The amount of Bad Debts provided for the year is $ 144.1 million.

The amount of bad debts written off during the year is $ 160.2 million.

The amount of cash collected from the Customers

Opening Gross Accounts Receivable = $ 622.50 million

Sales for the year 2015 = $ 6,076.50 million

Closing Gross Accounts Receivable = $ 529.70 million

Net Collections from Customers = $ 6,169.30 million

5 0

4 years ago

Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transa

MissTica

Solution :

Required :

Items Cash Net Income

a). Supplies of $133 purchased for cash - $ 133 --

b). Recorded the adjustment entry so as to

record use the $31 for the above supplies -- $ 31

c). Made sales of the $ 1297 on account -- $ 1,297

d). $865 received from customers as payment

of accounts $ 865 --

e). $ 2,528 purchased the equipment for cash - $ 2, 528 --

f). Recorded the depreciation of the building

for the period use of $ 610 -- $ 610

3 0

3 years ago