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Natasha2012 [34]
3 years ago
6

The following information pertains to Guy’s Gear Company: Sales $ 75,000 Expenses: Cost of Goods Sold $ 47,500 Depreciation Expe

nse 5,500 Salaries and Wages Expense 11,500 64,500 Net Income $ 10,500 Accounts Receivable Decrease $ 3,500 Inventory Increase 7,500 Salaries and Wages Payable Increase 700 Required: Present the operating activities section of the statement of cash flows for Guy’s Gear Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Business
1 answer:
iren [92.7K]3 years ago
8 0

Answer:

Cash flow provided from operating activities 12,700

Explanation:

Net Income: 10,500

Depreciation expense 5,500 a

Adjusted income 16,000

Change in working capital

↓Account Receivable 3,500 b

↑Inventory (7,500) c

↑Salaries payable 700 d

Total Change in working capital (3,300)

Cash flow provided from operating activities 12,700

<u>Notes:</u>

a The depreciation is a non-monetary concept it has no impact in cash. It is removed.

b The decrease the AR means cash was collected, therefore the cash increase

c The increase in inventory represents cash being used to purchase that inventory. Cash decreased

d the salaries payable represent the delay of cash disbursement, it increases cash.

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Categorize each statements as a component of Gross Domestic Product (GDP): consumption, investment, government, or net exports.
Natasha2012 [34]

Answer:

-Consumption: ice cream, a domestically manufactured personal computer, cab fare for personal use, 55 cent tacos, A super bowl ticket bought new from the NFL

- Investments: A domestically manufactured business computer

-Government: A public school teacher

-Net Exports: An exported doll house

Explanation:

Gross Domestic Product is the market value of goods and services produced locally within a given period. GDP includes goods and services produced during a particular time interval. In the past, bargains for products produced are not reflected in GDP. Usually this interval is years or quarters.

Consumption contains produced goods and services. It is used by people to meet their needs and wishes. In the Keynesian economy, consumption means individual consumption expenditure and is indicated by the consumption function. The most important part of the consumption function is the marginal consumption trend. MPC shows what percentage of each new income earned is used for consumption expenditures.

Public expenditure, in economy, indicates the complex of money of public origin that is used by the State in public goods and / or public services aimed at pursuing public purposes, regardless of the nature (public or private) of the obligation that is the title . These are therefore the exits by the state and therefore an item of liabilities within the state budget, the coverage of which is necessarily entrusted to taxation on taxpaying citizens or public debt. Otherwise, the repercussions are of an inflation or devaluation type, depending on the domestic or foreign destination of the capital.

Trade balance (Trade deficit) or Net Export is the balance of trade (export, import) of one country (with other countries). Based on this, the Trade Balance (Foreign Trade Balance) is the relationship between exports and imports. If the country's exports are greater than the import, net exports will be greater than 0, and in this case, the country's foreign trade balance will increase (a positive balance). In a word, the trade balance is positive. Otherwise, net exports will be less than 0 if the country exports are smaller than imports. In this case, the country will have a foreign trade deficit. In other words, the trade balance will be negative. The negative trade balance also indicates that the country needs foreign products in addition to its own products.

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When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting
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Accounts receivable and crediting Notes Receivable and Interest Revenue.

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Peyton sells an office building and the associated land on May 1 of the current year. Under the terms of the sales contract, Pey
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Answer: $‭2,890,426‬

Explanation:

= Cash received + Mortgage assumed - Points paid by Peyton - Broker's ,commission

= 1,867,200 + 1,120,320 - 22,406 - 74,688

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5 0
3 years ago
The spot price of silver is $25 per ounce. The storage costs are $0.24 per ounce per year payable quarterly in advance. Assuming
rewona [7]

Answer:

The future price of Silver is $26.14

Explanation:

First we compute Total storage costs(Tsc) in the future given by the equation:

T<em>sc</em> = (S<em>c</em>/4) * [  1 + exp(-rT<em>1</em>) + exp(-rT<em>2</em>) ]

where Sc is the storage cost today

where r is the rate

S<em>c</em> = $0.24

T<em>1</em> = 3/12

T<em>2</em> = 6/12

r = 5%=5/100

 = 0.05

Tsc = (0.24/4) [ 1 + exp(0.05*3/12) + exp(0.05*6/12) ]

Tsc = 0.06 [ 1 + exp(-0.05×0.25) + exp(-0.05×0.5) ]

Tsc = 0.178

The future price( Fv) is given by:

Fv = (Sp+ Tsc) *exp(rt)

where Sp is the spot price of silver

where r is the interest rate

where t is the delivery time ratio (9 months compared to 12 months)

Sp = $25

r = 5%

 = 5/100=0.05

t = 9/12

   =0.75

Fv = (25. 000+0. 178) * e xp(0. 05×0 .75 )

Fv = $26. 14

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