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____ [38]
3 years ago
5

BuzzInc. sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale. How should this ga

in be treated when preparing the operating activities section of the statement of cash flows using the indirect method?
Business
1 answer:
WITCHER [35]3 years ago
3 0

Answer:

The gain should be deducted from net profit before tax and interest while calculating cash flows from operations and the cash proceeds is shown under investing activities as positive cash flow.

Explanation:

Since the cash flow is about actual cash received in period,the gain is irrelevant.But the gain must have been added in income statement in arriving at net income,hence in order to avoid double counting the gain impact should be eliminated whereas the cash received from the disposal is brought in down the line under investing activities as cash inflow.

The overall impact of this transaction on cash flow statement is illustrated below:

Gain                       -$45000

Cash proceeds       $230000

Net impact             $185000

The transaction has  $185000 impact on the cash flow statement as a whole.

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Ari is a generous employer who truly values his workers. He is constantly praising the work his employees do and finds many ways
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Ari does not like conflict and will often let his employees get away with inappropriate behavior on the job. Ari would most likely be considered a <u>country club manager.</u>

<h3>What is a country club manager's style?</h3>

A country club manager's leadership depicts a manager who scores low on productivity but high on concern for people.

Country club managers are attentive to the:

  • Security
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Thus, Ari does not like conflict and will often let his employees get away with inappropriate behavior on the job. Ari would most likely be considered a <u>country club manager.</u>

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6 0
2 years ago
An ____ is a group of individuals, working together to achieve shared job-related goals such as higher pay shorter working hours
podryga [215]

The answer is union or labor union. This is an group of workers who have come together to attain common goals such as guarding the integrity of its trade, refining safety standards, attaining higher pay and benefits such as health care and retirement, increasing the number of employees an employer allocates to complete the work, and better working conditions.

7 0
3 years ago
The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactu
Sholpan [36]

Answer: A.exceed units sold

Explanation:

In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.

Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.

This difference in consideration of costs under each method leads to difference in income determination under each method.

Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.

This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.

8 0
3 years ago
The way Professor Quinn chose to handle this situation illustrates the difficulty of dealing with ethics violations. Listed as f
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Answer:

  • Establishing a code of ethics
  • Referring ethical dilemmas to an ethics committee

<u>Explanation:</u>

Consider, by establishing a code of ethics it allows corporations to prevent their employees from making excuses for any ethical violation. Furthermore, when referring ethical dilemmas to an ethics committee is made available to employees by corporations it allows their employees to easily get the right information about how to behave ethically.

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3 years ago
An accounting report that shows the changes in capital during the accounting period is a/an A. balance sheet. B. income statemen
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D would be the answer
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3 years ago
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