Answer:
C) $4,965,000.
Explanation:
cash collected form customers = accounts receivable beginning balance + total revenue - accounts receivable beginning balance = $320,000 + $5,000,000 - $355,000 = $4,965,000
The direct method only uses actual cash outflows and inflows to calculate the cash flow from operating activities.
Answer:
All net income, less all dividends, since the company began operations.
Explanation:
Retained Earnings are the retained profits that the company keeps with itself, for meeting any case of emergency or for growing company and thus, meeting the growing expenses.
Each year when company earns profits and then, it distributes its profits in the form of dividends, the balance remaining after paying the dividends is added to retained earnings.
Thus, the entire balance of these kind of profits not paid anywhere else and also not utilized is called retained earnings.
Answer:
$816,000
Explanation:
Little company's income was for 864,000
We also have, amortization related to Little company for 48,000
we will decrease the income from Little company by this amount
giving a net result of 816,000
The dividends do not impact net income.
The Big Company transactions do not impact on the Little company net income unless we are provided otherwise.
We are not given any information of rtansactions intra-entity so we can conclude thats the consolidades earning for Little Company.
<u>Journal entry for the issuance of Bonds:</u>
It is given that on December 31, 2015, wintergreen, inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. That means the proceeds from issue of these bonds are 150,000*93.25/100 = $139,875 and the discount on issue of bonds shall be = 150,000-139875 = $10,125.
The Journal entry for the issuance of Bonds shall be as follows:
December 31, 2015
<u>Account Titles </u> <u>Debit</u> <u>Credit</u>
Cash $139,875
Discount on Bonds Payable $10,125
Bonds Payable $150,000
(Being bonds issued on discount)
