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Kruka [31]
3 years ago
8

A company had net income of $252,327. Depreciation expense is $21,821. During the year, Accounts Receivable and Inventory increa

sed by $14,346 and $33,617, respectively. Prepaid Expenses and Accounts Payable decreased by $3,079 and $4,161, respectively. There was also a loss on the sale of equipment of $5,398. How much cash was provided by operating activities? Select the correct answer.
a. $279,546
b. $219,705
c. $261,357
d. $230,501
Business
1 answer:
Anettt [7]3 years ago
7 0

Answer: Option (d) is correct.

Explanation:

Given that,

Net Income = $252,327

Depreciation expense = $21,821

Accounts Receivable increased by = $14,346

Inventory increased by  = $33,617

Prepaid Expenses decreased by = $3,079

Accounts Payable decreased by = $4,161

Loss on the sale of equipment = $5,398

Operating Income = Net Income + Depreciation expense - Accounts Receivable - Inventory + Prepaid Expenses - Accounts Payable + Loss on the sale of equipment

= $252,327 + $21,821 - $14,346 -  $33,617 + $3,079 - $4,161 + $5,398

= $230,501

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Answer:

a)

1. Explicit cost

2. Implicit Cost

3. Implicit Cost

4. Explicit cost

b)

Accounting Profit is $62000.

Economic Profit is -$3000. (a loss of $3000)

Explanation:

a)

Explicit costs are those costs incurred by a business that require an outlay of money as a result of operating a business.

Implicit costs, on the other hand, are the costs that do not require an outlay of money as a result of operating a business. They are instead the opportunity costs of operating a business or the benefits that are foregone.

1. The wages and utility bills are a result of operating a business and requires and outlay of money as their payment. They are <u>explicit costs.</u>

2. The rental income could have been earned if Larry rented the showroom he is using to operate his business from. The rent foregone is an opportunity cost and is an <u>implicit cost.</u>

3. The salary Larry could have earned is also something that Brian has to forego to operate his business and is an <u>implicit cost.</u>

<u />

4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>

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b)

Accounting profit = Total Revenue - Total explicit cost

Economic profit =  Total revenue - (Total Explicit Cost + Total Implicit Cost)

Accounting Profit = 793000 - 430000 - 301000 = $62000 profit

Economic profit = 793000 - (430000 + 301000 + 15000 + 50000) = -$3000 loss

6 0
3 years ago
Use the information to answer the following questions. XXX, Inc. Balance Sheet 2018 2017 2018 2017 Cash 200 450 Accounts Payable
Anna11 [10]

Answer:

$2,145

Explanation:

For the computation of Net Operating Profit After Taxes (NOPAT) first, we need to compute the tax rate which is shown below:-

Tax rate = Tax expense ÷ Earnings before tax

= 700 ÷ 2,000

= 35%

Net Operating Profit After Taxes (NOPAT) = EBIT × (1 - tax rate)

= 3,300 × (1 - 35%)

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Therefore for computing the Net Operating Profit After Taxes (NOPAT) we simply applied the above formula.

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3 years ago
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JulijaS [17]

Answer:

c

Explanation:

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3 years ago
carl's television stopped working just before the big game and he did not have enough money to purchase another television. he k
mihalych1998 [28]

Carl's Television Assume that there are no cases that have interpreted the statute and no statutory definitions that apply.We know 18 televisions sets contains 3 defective.

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3. The number of ways the hotel purchases 8

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So the probability that the hotel receives at least

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The number of ways the hotel can receive at

least one defective set in a purchase of 8 sets is

calculated using the combination.

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7 0
1 year ago
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The next step in the purchase process will be to identify and determine the potential suppliers.

<h3>What is a purchase process?</h3>

It should be noted that that purchasing process simply has to do with the buying of goods and services.

In this case, in the purchase process, once the company's needs have been identified and product specifications have been outlined, the next step would be to identify and determine the potential suppliers.

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