Answer:
Cash flow from operating activities 992,000
Explanation:
revenue 2,000,000
expenses 800,000
before tax income 1,200,000
tax rate 34% <u> (408,000) </u>
Net Income 792,000
Non-monetary
depreciation 200,000
Cash flow from operating activities 992,000
To solve this we use the indirect method.
We will calculate the net income as usual and once we got there, we remove the non-monetary expeses or revenues.
Always, the depreciaton must be removed.
The depreciation is an accounting tool to distributethe cost of fixed assets during time, it do not represent an actual cash disbursement.
This means our cash flow is greater than net income by this amount.
Answer:
C. credit to Customer Refunds Payable, $900
Explanation:
Global Company sold merchandise to Montana Industries for cash, $3,450. The cost of merchandise sold was $1,850.
Global Company refunded Montana Industries $900 for returned merchandise. The cost of merchandise sold was $600.
The entry that will be recorded by Global Company in the journal entry for the refund from the sale a credit to Customer Refunds Payable, $900
<u>This amount of $900 will eventually be netted off against the accounts receivable amount for the total sales of $3,450, reducing the amount payable by the customer to $2550</u>
Answer:
C) The demand for analgesic drugs in the Terranian market is expected to remain stable.
Explanation:
The options were missing:
- A) Omni Healthcare often takes money from other strategic business units to support Cetaprin.
- B) A customer survey shows that Cetaprin users do not prefer it to other analgesics in the market.
- C) The demand for analgesic drugs in the Terranian market is expected to remain stable.
- D) Febex is rapidly gaining market share over Cetaprin due to aggressive marketing efforts.
- E) The Terranian market for healthcare products is expanding rapidly.
A cash cow is a mature product that is sold in a slow growth market, but holds a significant market share, and generate large and constant cash inflows to the company.
Answer:
529 Plan
Explanation:
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs.
