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3 years ago

Which of the following line items of the statement of cash flows must be obtained from the income statement?

Business

1 answer:

trapecia [35]3 years ago

5 0

Answer:

The answer is D.

Explanation:

Interest Expense is a line item in income statement. It is deducted from the gross profit/earnings.

Accounts Receivable is under current asset in balance sheet

Accruals in Curren liability will also be found in balance sheet.

cash dividends paid on both preferred and common stocks will be found under Statement of changes in equity.

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A note payable was issued in payment for services received. The services had a fair value less than the face amount of the note

Leokris [45]

Answer:

The note payable will be presented in the financial statement at the face amount minus a discount calculated at the imputed interest rate.

Explanation:

The imputed rate is the rate at which the present value of the face amount of the note will be equal to the amount at which it is originally recorded.

Notes issued or received in exchange for goods or services that do not bear interest at a fair rate are reported at an amount equal to the fair value of the note, the fair value of the goods or services, or the present value of the note using a fair interest rate, whichever is more readily determinable.

The difference between the recorded amount and the face value is considered a discount and the applicable interest rate regardless of which method is used to value the note.

Because of this, the note is reported at its face amount minus a discount calculated at the imputed interest rate.

3 0

3 years ago

If your lifestyle budget is $50000 a year selecting a career earning $75,000 will most likely allow you to meet your lifestyle g

NARA [144]

From what is said the answer is true. that leaves 25000 over your lifestyle budget

8 0

3 years ago

Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realizatio

GrogVix [38]

Answer:

$12,000

Explanation:

The amount of a gain or loss on realization is the difference between the sum of capital balances of partners and cash balance after settling all liabilities.

Total capital balances = $30,000 + $20,000 = $50,000

Total loss = Cash balance - Total capital balances = $38,000 - $50,000 = $12,000 loss.

Therefore, the amount of loss on realization is $12,000.

6 0

3 years ago

Economic agents who generate externality are distinct from those who experience them.

Vsevolod [243]

Answer:

The statement is: True.

Explanation:

Externalities are described as the effect of the actions of one party that influence directly in other individuals even if those other individuals have nothing to do in the operations of the first party. Externalities can be positive when they benefit the uninvolved individuals or negative when the externality affects them.

There are several types of externalities such as <em>technological, pecuniary, symmetric, asymmetric, transferable, depletable, non-depletable </em>and <em>transnational. </em>

Asymmetric externalities are those where the party causing the externality is not affected by its actions. It opposes symetric externalities which are those where the economic agent is directly affected by its own actions.

6 0

3 years ago

Read 2 more answers

5. A manufacturing company decides to buy solar cells in anticipation of rising electricity costs. The company is modeling its p

ch4aika [34]

If the expected rate of return for the company equals 8%, the maximum amount of initial investment that makes this a desirable and profitable project is <u>$11,385.20</u>.

<h3>What is the present value?</h3>

The present value is the discounted value of some future cash flows. It is computed using the present value formula or table. It can also be computed using an online finance calculator as follows:

For this project, we first calculate the future value of the cost-savings from the solar project based on $20,000 and 5% increases for 20 years as follows.

N (# of periods) = 20 years

I/Y (Interest per year) = 5%

PV (Present Value) = $20,000

PMT (Periodic Payment) = $0

Results:

FV = $53,065.95 ($20,000 + $33,065.95)

Total Interest = $33,065.95

Thereafter, we compute the present value of the above future value based on an 8% expected rate of return as follows:

N (# of periods) = 20 years

I/Y (Interest per year) = 8%

PMT (Periodic Payment) = $0

FV (Future Value) = $53,065.95

Results:

PV = $11,385.20

Total Interest = $41,680.75

Thus, if the expected rate of return for the company equals 8%, the maximum amount of initial investment that makes this a desirable and profitable project is <u>$11,385.20</u>.

Learn more about future values at brainly.com/question/24703884

8 0

2 years ago

Which of the following line items of the statement of cash flows must be obtained from the income​ statement?

Which of the following line items of the statement of cash flows must be obtained from the income statement?