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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.

Learn more about cash flows from

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Joe sold gold coins for $1,000 that he bought a year ago for $1,000. he says, "at least i didn't lose any money on my financial

solniwko [45]

The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />

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3 years ago

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Leto [7]

Answer:

All I know is SCIENCE

Explanation:

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3 years ago

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Classify the following as fixed or variable costs:

adelina 88 [10]

Answer:

Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries, Insurance premiums, Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery

Variable cost: Fuel, Shipping charges, Payments for raw materials,

Explanation:

Fixed costs are costs that are not changed regardless of quantity of goods being produced such as rent for equipment, taxes, depreciation and so on.

Variable costs are costs that change with regard to the quantity of goods being produced such as cost of raw materials, cost of packaging and so on.

Example of fixed and variable costs are:

Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries, Insurance premiums, Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery
Variable cost: Fuel, Shipping charges, Payments for raw materials,

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3 years ago

A large wine maker would like to buy new stainless steel containers for aging its wine. It is planning to purchase a number of c

nexus9112 [7]

Answer:

After-tax salvage value = $240,000

Explanation:

This can be calculated as follows:

Tax rate = 40%

Purchase price = $450,000

Annual depreciation expense = Purchase price / Number of usable life = $450,000 / 9 = $50,000

Accumulated depreciation after year 3 = Annual depreciation expense * 3 = $50,000 * 3 = $150,000

Remaining book value in 3 years = Purchase price - Accumulated depreciation after year 3 = $450,000 - $150,000 = $300,000

Salvage value in 3 years = Estimated sales price in 3 years = $200,000

Since the Net book value in 3 years of $300,000 is greater than the Salvage value in 3 years of $200,000, that means there is a tax saving. Therefore, the the after-tax salvage value at the time the containers will get sold can be calculated using the following formula:

After-tax salvage value = Salvage value + (Tax rate * (Remaining book value - Salvage value)) = $200,000 + (40% * ($300,000 - $200,000)) = $240,000

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3 years ago

Mayan Company had net income of $32,670. The weighted-average common shares outstanding were 9,900. The company declared a $4,60

Lana71 [14]

Answer:

The correct option is A ,earnings per share is $2.84

Explanation:

Earnings per share is given earnings attributable to ordinary shareholders divided weighted average common shares.

The net income needs to be adjusted to reflect only earnings distributable to common shares.

Earnings to common stocks=$32670-$4600

=$28070

Weighted average common shares=9900

Earnings per share=$28070/9900

=$2.84 per share

Option B is wrong because it calculated earnings per share with net income instead of earnings of common shareholders($32670/9900=$3.30)

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3 years ago