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Pachacha [2.7K]
1 year ago
10

If a company is using the indirect method to prepare the statement of cash flows, a decrease in the inventory account should be

reported as:
Business
1 answer:
zubka84 [21]1 year ago
3 0

If a company is using the indirect method to prepare the statement of cash flows, a decrease in the inventory account should be reported as a decrease in cash flows from operating activities.

<h3>An indirect method to prepare the statement of cash flows</h3>
  • The statement of cash flows is prepared indirectly by adjusting net income for changes in balance sheet accounts in order to determine the amount of cash generated by operational activities.
  • One of the parts of a firm's set of financial statements, the statement of cash flows, is used to show where a company gets its money from and what it does with it.
  • It provides details on the cash generated by operations and the impact of various balance sheet modifications on a company's cash position.
  • The indirect mode of presenting is particularly common since the data needed for it can be gathered rather quickly from the accounts that a company typically has in its chart of accounts.

To learn more about the indirect method to prepare the statement of cash flows refer to:

brainly.com/question/17537007

#SPJ4

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A food handler's duties regarding food safety include all of the following practices EXCEPT: Prevention of food contamination Pe
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The answer to your question is,

Periodically test food for illness causing microorganisms.

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Wolsey Industries Inc. expects to maintain the same inventories at the end of 2016 as at the beginning of the year. The total of
iogann1982 [59]

Answer:

Wolsey Industries Inc.

A. Estimated Income Statement for year ended December 31, 2016

Sales Revenue                                           $4,320,000

Cost of goods sold                                      3,062,000

Gross profit                                                $1,258,000

Expenses:

7. Sales salaries and  commissions 326,000

8 Advertising                                      40,000

9 Travel                                               12,000

10 Miscellaneous selling                    34,600

11 Administrative expenses:

12 Office and officers’ salaries       132,000

13 Supplies                                       118,000

14 Miscellaneous administrative      40,400  $703,000

Net income                                                    $555,000

B. Expected Contribution Margin ratio = 25%

C. Break-even sales in units and dollars:

Sales in units:  13,125

Sales in dollars:  $2,100,000

D.  The break-even sales is 13,125 units and $2,100,000

E. The expected margin of safety:

Sales dollars:   $2,220,000

Percentage of Sales: 48.6% ($2,100,000/$4,320,000)

F. Operating leverage: = Contribution/Net operating income

= $1,080,000/$555,000 = 1.95

Explanation:

a) Data and Calculations:

1                                                 Estimated           Estimated

                                                 Fixed Cost     Variable Cost (per unit sold)

2 Production costs:

3 Direct materials                             —                  $46.00

4 Direct labor                                    —                    40.00

5 Factory overhead                $200,000.00          20.00

6 Selling expenses:

7 Sales salaries and

commissions                               110,000.00            8.00

8 Advertising                               40,000.00             —

9 Travel                                        12,000.00             —

10 Miscellaneous selling

expense                                         7,600.00             1.00

11 Administrative expenses:

12 Office and officers’ salaries 132,000.00               —

13 Supplies                                  10,000.00             4.00

14 Miscellaneous administrative

expense                                      13,400.00              1.00

15 Total                                 $525,000.00       $120.00

Selling price per unit = $160

Sales volume = 27,000 units

Sales revenue = $4,320,000 ($160 * 27,000)

Variable production cost = $106 per unit

Total variable production costs = $2,862,000 ($106 * 27,000)

Fixed production cost =                     200,000

Total production cost =                $3,062,000

                                                   Total          Per Unit

Sales revenue =                    $4,320,000    $160

Variable production costs = $2,862,000      106

Variable expenses                     378,000         14

Total variable costs              $3,240,000    $120

Contribution =                       $1,080,000      $40

Contribution margin ratio = 25% ($40/$160 * 100)

Total fixed costs:

Production costs = $200,000

Selling and admin = 325,000

Total fixed costs = $525,000

Break-even point = Fixed costs/Contribution margin per unit

= $525,000/$40 = 13,125

Break-even point in dollars = $525,000/25% = $2,100,000

7. Sales salaries and  commissions 326,000  (110,000.00 + (27,000 * 8.00))

8 Advertising                                      40,000

9 Travel                                               12,000

10 Miscellaneous selling

expense                                             34,600 (7,600.00 + (27,000 * 1.00))

11 Administrative expenses:

12 Office and officers’ salaries       132,000

13 Supplies                                       118,000 (10,000.00 + (27,000 * 4.00))

14 Miscellaneous administrative

expense                                          40,400 (13,400.00 + (27,000 * 1.00))

5 0
3 years ago
Describe the difference between a fixed-quantity (Q) and a fixed-period (P) inventory systems and provide an example for each.
sergeinik [125]

Answer and Explanation:

The fixed quantity inventory system, the quantity of an order or the lot size is fixed in nature i.e. the similar amount means the quantity is ordered each and every time. It could be managed by continonusly watching the level of inventory. Example - economic order quantity

On the other hand, the fixed period inventory system is a system in which the inventory is to be checked at fixed inventory. It is same as the periodic reveiw system instead of the continuous basis. Example - drugstore

7 0
3 years ago
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart wi
Mekhanik [1.2K]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.

To calculate the present value, first, we need to determine the final value.

i= 0.09/12= 0.0075

n= 30*12= 360

<u>Martha:</u>

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= montlhy payment

FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}

FV= 366,148.70 + 2,746.12

FV= 368,894.82

Now, the present value:

PV= FV/ (1+i)^n

PV= 368,894.82/ 1.0075^360

PV= $25,042.80

<u>Stewart:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly payment

FV= {200*[(1.0075^360)-1]}/0.0075

FV= 366,148.70

PV= 366,148.70/1.0075^360

PV= $24,856.37

Martha has a higher present value because the interest gest compounded for one more time.

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3 years ago
17. managers apply program management principles to ensure that programs and their components are appropriately planned, control
strojnjashka [21]

The correct answers to the given questions are given below:

  1. Operations
  2. Competing
  3. Direct reporting stakeholders
  4. Only virtual meetings
  5. Program Stakeholder Engagement
  6. Appetite
  7. Organizational project management
  8. Are only one part of
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  10. Governance complexity
  11. Formulation
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  13. Discussion
  14. Program
<h3>What is Risk Appetite?</h3>

This refers to the risk capacity of a company with regards to the maximum risk which it is ready to accommodate in the production process

Read more about risk appetite here:
brainly.com/question/25658781

4 0
2 years ago
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