The process of organizing information we receive by filling in missing information is called

Pratt Corp. started the Year 2 accounting period with total assets of $37,000 cash, $15,500 of liabilities, and $12,000 of retai

yuradex [85]

Answer:

a) Revenue = $46,750

b) Stockholder's equity $35,050

c) Net Total Assets = Stockholder's equity = $35,050

d) Net cash generated for the year is $13,050; and Ending cash balance is $50,050

Explanation:

a. Prepare an income statement for the 2018 accounting period

To prepare this, cash revenue is first determined as follows:

Revenue = Retained earning for the year + Expenses + dividend = $46,750

The income statement can now be prepared as follows:

Pratt Corp.

Income statement

For the 2018 accounting period

Particulars $ 

Revenue 46,750

Expenses (29,500)

Net income 17,250

Dividend paid (2,700)

Retained Earnings for the year 14,550

b. Prepare a statement of changes in stockholder's equity for the 2018 accounting period

Pratt Corp.

Statement of changes in stockholder's equity

For the 2018 accounting period

Particulars $ 

Issue of common stock 8,500

Beginning retained earnings 12,000

Retained Earnings for the year 14,550

Stockholder's equity 35,050

c. Prepare a period-end balance sheet for the 2018 accounting period

Pratt Corp.

Balance Sheet

For the 2018 accounting period

Particulars $ 

Total Assets

Ending cash balance 50,050

Total Liability

Liability (15,500)

Net Total Assets  35,050 

Financed By:

Issue of common stock 8,500

Beginning retained earnings 12,000

Retained Earnings for the year 14,550

Stockholder's equity 35,050

Note: Since both the Net Total Assets and Stockholder's equity are both equal to $35,050 as normally require, it shows the balance sheet is accrurately prepared.

d. Prepare a statement of cash flows for the 2018 accounting period

Pratt Corp.

Statement of Cash Flows

For the 2018 accounting period

Particulars $ $ 

Net income 17,250

Cash flow from operating activities 17,250

Changes in Financing Activities:

Decrease in liability (10,000)

Issue of common stock 8,500

Dividend paid (2,700)

Cash flow from financing activities (4,200)

Net cash generated for the year 13,050

Beginning cash balance 37,000

Ending cash balance  50,050 

4 0

4 years ago

Which of the following is an example of the law of diminishing marginal returns? A. Holding capital constant, when the amount

Irina-Kira [14]

Answer:

The correct answer is option A.

Explanation:

The law of diminishing returns states that as we go on employing more and more unit of input while keeping other inputs constant, the return from each additional unit of input will go on declining.

This means that the output produced from each additional unit of input will go on declining.

Here, as capital is kept constant and labor is increased by a unit, the output at first increases by 5 units from 20 to 25. But later when input is again increased by a unit, the output increase by only 3 units from 25 to 28.

This shows the law of diminishing marginal returns where the marginal returns from a unit of labor is declining.

3 0

3 years ago

Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended D

kirill [66]

Answer:

PEACH COMPUTER

Operating Activities Section of Cashflow Statement

Cash flows from operating activities: $91,000

Adjustments to reconcile net income to

net cashflows from operating activities:

Add: Depreciation $47,000

Changes in operating assets and liabilities:

Increase in Inventory ($18,500)

Decrease in accounts receivable $4,200

Increase in Accounts Payable $6,500

Decrease in Prepaid rent $1,700

Decrease in Income tax payable ($3,800) $‭37,100‬

Net Cash from Operating activities $128,100

8 0

3 years ago

You own a car that gets great gas mileage, so you drive it a lot. However, you've noticed

grin007 [14]

The given scenario is a good example of overuse of a car.

<h3>What is Overusing?</h3>

This refers to the situation where a person makes use of a thing or product, beyond its normal use and causes it to breakdown or wear and tear.

Hence, we can see that in the given scenario, a car has a great mileage which means it has been driven a lot and as a result of this, the tires wear out and needs replacement and this is an example of overuse.