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3 years ago

22) Where would the event purchased land for cash appear, if at all, on the indirect statement of cash flows?

1 answer:

7 0

In the cash flow statement whether the direct or indirect method is used, it depends on the nature of business. If the company is into buying and selling (trading) of land, the cash purchase of land can form part of the Operating Activities. If it is otherwise, the cash purchase of land should be included in the Investing Activities section.

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Barr Corp. started a long-term construction project in 20X0. The following data relate to this project: Contract price $4,200,00

dalvyx [7]

Answer:

The correct answer is $350,000

Explanation:

Contract price = $4,200,000

Costs incurred = $1,750,000

Estimated costs to complete = $1,750,000

Progress billings= $900,000

Collections on progress billings= $800,000

Contract price - total estimated cost

$4,200,000 - ($1,750,000 + $1,750,000)

= $4,200,000 - $3,500,000

= $700,000

one-half of the estimated costs of this construction project were incurred

$1,750,000 ÷ ($1,750,000 + $1,750,000)

= $1,750,000 ÷ $3,500,000

= 0.5

In Barr's 20X0 income statement,what amount of gross profit should be reported for this project?

$700,000 x 0.5 = $350,000

$350,000 should be reported as gross profit for the 20X0 income statement.

4 0

3 years ago

Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal p

irina1246 [14]

Answer:

the Company C is the most profitable

Explanation:

The computation of the profit margin for the following companies is

We know that

Profit margin = Net income ÷ Net sales

Now

Company Net income Net sales Profit margin

a $5,253 $44,140 11.9%

b $86,033 $392,846 21.9%

c $90,324 $251,598 35.9%

d $63,120 $1,434,550 4.4%

e $72,787 $428,158 17.0%

Based on the calculation above, the Company C is the most profitable

7 0

3 years ago

Overton Company has gathered the following information.

serg [7]

Answer:

Kindly check attached picture for detailed computations of section a, b and c.

6 0

3 years ago

If a bank deposit will double in value in 18 years, the rule of 72 implies that the interest rate on the deposit must equal is a

arlik [135]

Answer:

b. 4 percent

Explanation:

According to the rule of 72, hte number of years required for an investment to be doubled can be obtained by dividing 72 by the interest rate (in percentage). If it takes 18 years for the investment to bouble in value, the interest rate is:

$18=\frac{72}{i}\\i=4\%$

The interest rate on the deposit is 4%.

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4 years ago

A company that produces running shoes specifically for customers with low arches, utilizes a market-orientation approach and lik

masya89 [10]

Answer: The correct answer is "c. employs customer relationship management strategies.".

Explanation: Customer relationship management strategies involve a management model of the entire organization, based on customer satisfaction (or market orientation according to other authors). It is an approach to manage the interaction of a company with its current and potential customers.

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3 years ago