All the cash inflows or outflows associated with the fixed assets is known as the cash flows from assets. Cash flows used for acquiring, replacing, Enhancing the capability of Fixed assets, received from disposal of fixed assets etc. are all included in this category.

A cash outflow of $42,110 is the only which is categorised as the cash flow from assets.

Dividend, Interest, issued new equity and paid long term debt are all cash flows from financing activities. Net working capital is the operating cash flow and depreciation expense is non cash expense.

3 0

4 years ago

etermining Gross Profit During the current year, merchandise is sold for $990,000. The cost of the merchandise sold is $693,000.

otez555 [7]

Answer:

Results are below.

Explanation:

A: To calculate the gross profit, we need to use the following formula:

Gross profit= sales - cost of goods sold

Gross profit= 990,000 - 693,000

Gross profit= $297,000

B: Now, the gross profit percentage:

Gross profit percentage= (gross profit / sales)*100

Gross profit percentage= (297,000 / 990,000)*100

Gross profit percentage= 30%

C: Finally, a net income is reported in the income statement at the moment of the sale. It doesn't matter if the sale was paid or not.

6 0

3 years ago