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Law Incorporation [45]
2 years ago
11

Explain why cash payments during the period for purchases and for salaries are not specifically reported as cash outflows on the

statement of cash flows, under the indirect method.
Business
1 answer:
Ymorist [56]2 years ago
7 0

Explain why the cash flow statement prepared using the indirect method does not explicitly report cash outflows during the period of purchases and salaries. and do not report spills.

In most cases, cash flow and net income statements differ due to the time lag between recorded sales and actual payments. The situation is controlled when the billing customer pays cash in the next period.

The main advantage of the indirect cash flow method is that it provides a net income and cash flow adjustment. The indirect method also helps financial statement users to better understand the various relationships between financial statements and is an easy way to prepare cash flow statements.

Which of the following statements is correct when using the indirect method to prepare the cash flow statement? Income from the sale of equipment is added to the net income of the operations section. Losses on land sales are added to the operating section's net income.

Learn more about salaries here;

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stealth61 [152]

Answer:

<u>The correct answer is D. About 1.37%</u>

Explanation:

1. Let's review the information given to us to answer the question correctly:

Segment size = 9,000

Number of participants in the camp = x

Total Fixed Cost (TFC) = $ 9,000  

Variable Cost per Person = $ 5  

Price per Person = $ 90

Profit = $ 1,500

2. Based on the assumption provided above, what percentage of the segment should participate if the program wants to make $1500 profit?

We can calculate the variable cost, this way:

Total Variable Cost = Variable cost per person * Number of participants

Total Variable Cost = $ 5 * x

Total Variable Cost = $ 5x

We can calculate the total cost of the program, this way:

Total Cost of the program = Total Variable cost + Total Fixed Cost  

Total Cost of the program = $ 5x+ $ 9,000

Total cost of the program = $ 9,000 + 5x

We can calculate the revenue of the program, this way:

Total revenue of the program = Price per person * Number of participants + Profit

Total revenue of the program = $ 90 * x + $ 1,500

Total revenue of the program = $ 90x + $ 1,500

For Break-even:

Total Variable cost + Total Fixed Cost = Price per person * Number of participants

Replacing with the values we know and solving for x:

9,000 + 5x =  90x

5x - 90x = - 9,000  (Like terms)

-85x = -9,000

x =  -9,000/-85

x = 106 (rounding to the next whole)

For $ 1,500 of profits:

Number of participants at break-even + Profits/Price per participant

106 + 1,500/90 = 106 + 16.7 = 123

123/1,500 = 0.0137 = 1.37% (Rounding to two decimal places)

<u>The correct answer is D. About 1.37%</u>

5 0
3 years ago
6.
Vikki [24]

Answer:

Brand performance

Explanation:

Brand performance is the concept that compares and contrasts the goals a brand sets and how it meets those targets.

Therefore, brand performance is the concept that describe how well a market fulfills customers needs.

The answer is D

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What is one difference between fixed-rate mortgages and variable-rate mortgages?
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The correct answer should be <span>B. The interest rate may change depending on the condition of the economy.

Fixed-rate mortgages keep the same rates as they were declared at the time of the contract signing, which can either be great for the person or the bank depending on the economy fluctuations. Variable-rate mortgages change based on the economy which means that the conditions are always kept to a certain standard.</span>
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Match the following terms with their definitions. the resources wasted when inflation induces people to reduce their money holdi
gogolik [260]

Answer:

Explanation:

Match the following terms with their definitions.    

A. Confusion and Inconvenience :inflation decreases the reliability of the unit of account making it more complicated to differentiate successful and unsuccessful firms thereby impeding the efficient allocation of funds to alternative investments.

B. Shoeleather costs : the resources wasted when inflation induces people to reduce their money holdings.

C. Relative Price Variability : because prices change infrequently, higher inflation causes relative prices to vary more. Decisions based on relative prices are then distorted so that resources may not be allocated efficiently.

D. Unexpected Inflation :inflation decreases the real value of debt thereby transferring wealth from creditors to debtors.

E. Menu costs the cost of more frequent price changes at higher inflation rates.

F. Inflation Induced Tax Distortions :the income tax is not completely indexed for inflation; an increase in nominal income created by inflation results in higher real tax rates that discourage savings.

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