Here is the answer of the given question above. The decision rule that should be followed when deciding if a business segment should be eliminated is this: Segments with revenues which are less than avoidable expenses should be considered for elimination. <span>Unavoidable expense are those expense which will continue to be incurred whether segment is continued or discontinued. Hope this helps.</span>
Answer:
Schedule of cost of goods manufactured & Sold
Particulars Amount
Direct materials used $15
Direct labor $20
Factory overhead Applied <u>$30</u>
(150% of DL Cost)
Total manufacturing costs $65
Add: Beginning WIP <u>$25</u>
Total cost of work in process $90
Less: Ending WIP <u>$10</u>
Cost of goods manufactured <u>$80</u>
Particulars Amount
Cost of goods manufactured $80
Add: Beginning finished goods inventory <u>$5</u>
Cost of goods available for sale $85
Less: Ending finished goods inventory <u>$15</u>
Cost of goods sold <u>$70</u>
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Answer:
Determine whether the following bonds payable will be issued at face value, at a premium, or at a discount:
a.The market interest rate is 8%. Idaho issues bonds payable with a stated rate of 7.75%.
- Bonds issued at discount because market rate is higher than the bond's coupon rate.
b.Austin issued 9% bonds payable when the market interest rate was 8.25%.
- Bonds issued at premium because market rate is lower than the bond's coupon rate.
c.Cleveland's Cars issued 10% bonds when the market interest rate was 10%.
- Bonds issued at par because bond's coupon rate is equal to the market rate.
d.Atlanta's Tourism issued bonds payable that pay the stated interest rate of 8.5%. At issuance, the market interest rate was 10.25%.
- Bonds issued at discount because market rate is higher than the bond's coupon rate.
Answer:
The correct answer is Net cash= 96.100,00
Explanation:
Depreciation expenses must be added back to net income.
Also, Increase in accounts payable is added to net income
Gain on sale of land and Increase in merchandise inventory are subtracted from net income
So,
Indirect Method
Net income 86.300,00
Depreciation expense 13.000,00
Increase in accounts payable 7.150,00
Gain on sale of land (7.300,00)
Increase in merchandise inventory (3.050,00)
Net cash 96.100,00
