Answer:
$69,900
Explanation:
Data provided
Net income = $37,800
Depreciation expense = $22,400
Decrease account receivable = $9,700
The calculation of Cash flow from operating activities is given below:-
Cash flow from operating activities = Net income + Depreciation expense + Decrease account receivable
= $37,800 + $22,400 + $9,700
= $69,900
So, for calculating the cash flow from operating activities we simply applied the above formula.
Answer:
If the company reworks the units, income will increase by $6,400 (compare to sell them as-is).
Explanation:
Giving the following information:
The company has 16,000 defective units.
<u>We will not take into account the original cost of the units. It is irrelevant to the decision making. It will remain constant in both options.</u>
Option A:
Effect on income= 16,000*2.8= $44,800
Option B:
Effect on income= 16,000*(8 - 4.8)
Effect on income= $51,200
If the company reworks the units, income will increase by $6,400 (compare to sell them as-is).
Answer: Option C
Explanation: In simple words, compound interest refers to the interest that includes previously earned and deposited interest in calculating present interest amount along with the principal value.
In the given case, Rosie and Andy both deposited the same amount of principal with same interest rate. Thus, both will earn the same interest in initial year. However, Rosie withdrawal will not give her interest that she could have earned on the first interest amount.
Hence, from the above we can conclude that the correct option is C .
Answer:
overstate net income but days to collect will increase.
Explanation:
A bad debt expense is defined when any receivable is no more collectible as the customer is not able to fulfil or satisfy the obligation in order to pay the obligation of paying an outstanding debt because of some financial problems or due to bankruptcy.
Thus when any organization is more optimistic about the debt collection, it will understate the bad debt expenses and will also overstate the net income. But in this case the number of days to collect the payment increases.