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LenaWriter [7]
3 years ago
8

A company's 2013 year-end balance sheet included the following: Jan. 1 Dec. 31 Accounts Receivable $80,000 $100,000Inventory $60

,000 $70,000Prepaid Expenses $100,000 $75,000Accounts Payable $120,000 $100,000 Deferred Revenue $65,000 $95,000 The company's net cash from operating activities on its 2013 Statement of Cash Flows is $200,000. Current year depreciation expense is $25,000. What amount should the company report as net income for 2013? A. $130,000.B. $170,000.C. $175,000.D. $230,000.
Business
1 answer:
denis-greek [22]3 years ago
3 0

Answer:

B. $170,000.

Explanation:

X company

statement of cash flow

For the year ended

Net income (balancing) (Note - 1)                                   $170,000

Cash flow from operating activities                      

Depreciation expense                                   $25,000

Increase in account receivable                     $(20,000)

Increase in inventory                                     $(10,000)

decrease in Prepaid Expenses                     $25,000

Decrease in Accounts Payable                     $(20,000)

Increase in Deferred Revenue                      $30,000

<u>Cash flow                                                                                $30,000</u>

Net cash flow from operating activities                              $200,000

Note 1:

Net cash flow from operating activities - Total changes in working capital=                        $200,000-$30,000 = $170,000.

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Macroeconomics DeShawn has spent $600 purchasing and repairing an old fishing boat, which he expects to sell for $900 once the r
Lisa [10]

Answer:

The answer is: If he pays the extra $400 needed to complete the repairs, DeShawn will reduce his losses to $100 ($900 - $1,000). It is better than losing $200.

Explanation:

If DeShawn sells the boat now for $400 he will have lost $200. But if he decides to complete the repairs on the boat, investing the extra $400, and sells the boat for $900, he will have only lost $100.

If he pays the extra $400 needed to complete the repairs, DeShawn will reduce his losses to $100 ($900 - $1,000). It is better than losing $200.

5 0
3 years ago
A project's operating cash flow will increase when the: Group of answer choices depreciation expense increases. interest expense
kkurt [141]

The correct option is (a) depreciation expense increases.

A measure of the amount of money made by a company's regular business operations is called operating cash flow (OCF). Operating cash flow shows if a business can produce enough positive cash flow to support and expand its operations; if not, it may need outside finance for capital growth.

While cumulative depreciation is the overall amount of wear and tear to date, depreciation expense is the amount that a company's assets are depreciated for a specific period (such as a quarter or the year). Accumulated depreciation is neither an expense, nor is it a depreciation expense.

Learn more about operating cash flow (OCF) here

brainly.com/question/735261

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4 0
1 year ago
Bonita Industries estimates its sales at 160000 units in the first quarter and that sales will increase by 27000 units each quar
drek231 [11]

Answer:

The correct answer is $5,228,500

Explanation:

Solution

Given that:

The second Quarter sales  = 160000 + 27000 = 187000 units

The credit sales of second quarter = (sales units*sales price) *(100%- 40%) = 187000 * $25* 60% = $2,805,000.

Now,

The units of Third quarter sales = 187000 + 27000 = 214000 units

The cash Sales of third quarter = 214000*$25 *40% = $2,140,000

Thus,

The credit sales of third quarter = 214000*$25 *60% = 3,210,000

Hence,

The cash budgeted collection for third quarter = Cash sales of third quarter + (Credit sales of Third Quarter*70%) + (Credit sales of second quarter * 30%)

= $2,140,000 + ($3,210,000*70%) + ($2,805,000*30%)

= $2,140,000 + $2,247,000 + $841,500

= $5,228,500

Therefore the cash collections for the third quarter are budgeted at $5,228,500

4 0
2 years ago
What is one benefit of a saving account?
Alexxx [7]
One benefit is having some money for the future, if there is an emergency or if you made a goal to buy a car, you can go into the account
7 0
2 years ago
Read 2 more answers
At December 31, 2017, before any year-end adjustments, Dallis Company's Prepaid Insurance account had a balance of $5,800. It wa
Blababa [14]

Answer:

$2,600

Explanation:

Given:

Prepaid Insurance account balance = $5,800

Prepaid insurance expired = $2,600

Insurance Expenses = ?

Computation of Insurance Expenses:

Given that Prepaid Insurance has expired So, the insurance premium is the Insurance Expenses for the year 2017.

Therefore, option "A" is the correct option of the following.

6 0
3 years ago
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