Answer:
$22,546
Explanation:
The preparation of the Cash Flows from Operating Activities -Indirect Method is shown below:
Cash flow from Operating activities
Net loss -$9,473
Add: depreciation $33,350
Less: Increase in Receivables -$179
Add: Decrease in Inventory $661
Less: Increase in Prepaid Expenses -$673
Less: Decrease in Accounts Payable -$2,291
Less: Decrease in Accrued Liabilities -$728
Add: Increase in Income Taxes Payable $1,879
Net Cash flow from Operating activities $22,546
Note payable is considered long term liabilities. Hence, we ignored it
The positive sign shows the inflow of cash while the negative sign shows the outflow of cash and the same is shown above
Year Annual cost PV factor at 12% Present value
1 $1,800,000 0.893 $1.607,400
2 $1,800,000 0.797 $1,434,600
3 $1,800,000 0.712 $1,281,600
4 $1,800,000 0.636 $1,144,800
5 $1,770,000 0.567 $1,003,590
6 $1,740,000 0.507 $882,180
7 $1,710,000 0.452 $772,920
8 $1,680,000 0.404 $678,720
9 $1,650,000 0.361 $595,650
10 $1,620,000 0.322 $521,640
Present worth $9,923,100
Answer:
50,900 units
Explanation:
a. The computation of the units were transferred out of Work in Process Inventory is shown below:
= Beginning inventory of work in process units + added to the production units - ending inventory of work in process units
= 8,100 units + 47,600 units - 4,800 units
= 50,900 units
Basically we added the production units and deduct the ending inventory of work in process units to the Beginning inventory of work in process units so that the transferred out units could come
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