Answer: Option A
Explanation: In simple words, forecasting refers to the process under which an entity tries to make prediction about its future operations by using the past data and the present trends as a reference for analysis.
In the given case, Truzan creations keeps records of its past operations and current trends in market. Therefore, we can conclude that the company must use forecasting tools to generate predictions fro their future sale.
Answer:
Have specific assets of the issuing company pledged as collateral.
Explanation:
The concept of a secured bond is similar to that of a secured loan. The secured bond requires the issuer to attach some specific assets as collateral. If the bond issuer fails to honor his bond obligations, the title for the assets passes on the bond buyers.
Secured bonds assure the investors that at least end up the certain assets should the bond issuer fail in bond payments. Corporations or government agencies that lack convincing financial track records use a secured bond to attract investors.
Answer:
Total cash collection= $20,375
Explanation:
Giving the following information:
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.
<u>Sales:</u>
March= $16,300
April= $32,600
<u>Cash collection April:</u>
Sales on account from April= 32,600*0.25= 8,150
Sales on account from March= 16,300*0.75= 12,225
Total cash collection= $20,375
Answer:
a. $48
b. $155,520
Explanation:
The computation of the fixed cost and the variable cost per hour by using high low method is shown below:
Variable cost per unit = (High total cost - low total cost) ÷ (High production - low production)
= ($322,560 - $207,360) ÷ (3,480 units - 1,080 units)
= $115,200 ÷ 2,400 units
= $48
Now the fixed cost equal to
= High total cost - (High production × Variable cost per unit)
= $322,560 - (3,480 units × $48)
= $322,560 - $167,040
= $155,520
We simply applied the above formulas
Answer:
The Net cash is 224.000
Explanation:
To get net cash flow using the indirect method we must make adjustment to the net income.
It depends on the movement if it is added or subtracted to net income
In this case,
Net income 252.000
+ Depreciation expense 26.000
- Increase in accounts receivable (15.000)
- inventory increased (40.000)
+ decreased Prepaid expenses 2.000
- accounts payable decreased (4.000)
+ loss on the sale of equipment 3.000
Net cash 224.000