Answer:
Gutierrez Company
Cash Flow statement
for the year 2017
$
Net Income 225,000
+ Depreciation 45,000
+ Decrease in receivable 15,000
+ Increase in payable 17,000
+ Decrease in prepaid expenses <u> 4,000 </u>
Net cash flow from operating activities <u>306,000</u>
Explanation:
Depreciation is an non cash expense so it will be added to the net profit for the calculation of cash flow from operating activities. Decrease in receivable, Increase in payable and decrease in prepaid expenses result in the inflow of cash. So, they are all added in the operating income value.
Answer:
The correct answer is letter "C": keep prices of downloads low and raise prices for concerts and merchandise.
Explanation:
To maximize profits, Augi's agent should not stop doing any of the commercial activities the pop singer has been carrying out. However, a way to deal with Augi's music internet piracy, the agent could lower the online-song prices but the "losses" can be compensated by raising the concert ticket prices and the singer's merchandise sold there since most of Augi's concerts are sold-outs.
Answer: d. shift the supply of loanable funds to the right causing the interest rate to fall.
Explanation:
Loanable funds come from the deposits(savings) that people make in financial institutions like banks. If more people were to make deposits, the amount of savings in the system would therefore increase.
To illustrate this increase the supply for loanable funds curve will shift to the right which will cause the interest rates to fall as there is now more supply relative to demand.
Answer: $720000
Explanation:
Sunk cos simply refers to a coat which a company has already incurred and can't be recovered. They're not relevant to future decisions if the company has they already happened in the past.
In this case, the sink cost will be $720,000 which is the total cost of the obsolete microcomputers, Other coat such as $100,000, $160,000, and $50,000 are relevant cost.
Answer:
The balance in the cash account at the end of the month will be $401.000
Explanation:
$0
+$ 344,000 bank loan
+$112,000 stock issued to stakeholders
-$54,000 purchase of inventory
+$25,000 sell
-$26,000 payment of dividends
-------------
$401,000 balance at the end of the month
see attached file for T-account
