Answer:
net cash from operating activities = $0
Explanation:
given data
net income = $70,000
dividend payment = $10,000
Mortgage repayment = $20,000
Available-for-sale securities purchased = 10,000 increase
Bonds payable = 50,000 increase
Inventory = 40,000 increase
Accounts payable = 30,000 decrease
solution
we get here net cash from operating activities that is express as
net cash from operating activities = net income - inventory increase - accounts payable decrease .......................1
put here value
net cash from operating activities = $70,000 - $40,000 - $30,000
net cash from operating activities = $0
because
- Dividend payments, repayment (mortgage) and debt issuance (bond) financing activities. The purchase of debt or equity instruments (securities available for sale) is an investment activity.
- Operating Cash Flow Investing cash flow excludes this financing. Further, these factors do not affect net income. Consequently, net cash provided by operating activities can be determined by adjusting net income payable in inventory and accounts.
- To differentiate between the cost of goods sold (deducted from income) and cash payments to suppliers, a two-step adjustment is required. The change in inventory is the difference between the prices of goods sold and purchased.
- The difference between the amount payable to buyers and suppliers is the change in accounts payable. Accordingly, an increase in inventories and a reduction in accounts payable is required to change the cost of goods sold to cash paid to suppliers.
It controls the money supply
Answer:
C
Explanation:
Down payment is something that you pay upfront before getting anything.
Answer:
$50,180
Explanation:
Preparation of Income Statement
NEIGHBORHOOD REALTY, Incorporated Income Statement For the Year Ended December 31,
REVENUE :
Commissions earned$167,700
($150,900+ $16,800)
Rental service fees 20,000
Total revenues $187,700
EXPENSES :
Salaries expense $62,740
Commissions expense $35,330
Payroll taxes $2,500
Rent Expenses $2,700
($2,475/11 month=225)
($2,475+225=$2,700)
Utilities expense $1,600
Promotion and advertising $7,750
Miscellaneous expenses $500
Total expenses (excluding income taxes) $113,120
Pretax income $74,580
($187,700-$113,120)
Income tax expense 24,400
Net income $50,180
($74,580-24,400)
Therefore NEIGHBORHOOD REALTY, Incorporated Income Statement For the Year Ended December 31, NET INCOME will be $50,180
Answer:
c- Reliance on a tax return preparer
Explanation
The substantial understatement penalty is a punishment that the IRS applies to taxpayers, it belong to the accuracy-related penalty. The IRS can impose it due to: careless, reckless, or intentional disregard of the rules or regulations. There are ways for taxpayer to avoid the penalty for taking a position on a return that is contrary to a rule or regulation if the taxpayer properly discloses the position, but reliance on a tax return preparer is not among the options, as it does not by itself constitute reasonable reliance in good faith; also, a taxpayer needs to discuss the issue with the adviser.
