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4 years ago

Q8. Smith Auto Dealership had beginning net fixed assets of $216,525 and ending

Business

1 answer:

AveGali [126]4 years ago

5 0

Answer:

The net cash flow is $7,844 from the sale of the assets.

Explanation:

Step 1: Determine the average fixed assets

The average net fixed assets can be determined using the expression;

Av=(Fb+Fe)/2

where;

Av=average net fixed assets

Fb=net fixed assets at the beginning of the year

Fe=net fixed assets at the end of the year

In our case;

Av=unknown

Fb=$216,525

Fe=$208,650

replacing;

Av=(216,525+208,650)/2=$212,587.50

The average net fixed assets=$212,587.50

Step 2: Determine the net fixed assets after accounting for depreciation

This can be expressed as;

Net fixed assets=average net fixed assets-depreciation

where;

average net fixed assets=$212,587.50

depreciation=$41,320

replacing;

Net fixed assets=(212,587.50-41,320)=$171,267.50

Step 3: Debit the fixed asset account and credit the cash account

Account Debit Credit

Fixed assets 7,844 163,423.50

Cash flow 163,423.50 7,844

The net cash flow is $7,844 from the sale of the assets.

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A sound principle to follow in demand forecasting is to

Vaselesa [24]

One of the most important principle in this regard is the appropriate product history which effects the future demand of the product.

Explanation:

Demand forecasting is to make predictions and forecast the demand of the product that has been produced by a particular firm. Since the demand has to be forecasted and predicted, a lot o factors which might be controllable and might be uncontrollable factors have to be taken in mind to forecast the demand.

The things to be kept in mind in this regard are the history of the product where previous sales will affect the prediction of the future demand, the promotions of the product, the trends and so on.

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3 years ago

A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity

forsale [732]

Answer:

Extrusion= $88 per batch

Handling= $32 per order

Packaging= $0.03 per unit

Explanation:

Giving the following information:

Activity Expected Costs Cost Driver:

Extrusion costs $ 83,600 Number batches made

Handling costs $ 8,800 Number of orders filled

Packaging costs $ 40,500 Number of units made

Product A Product B:

Production volume: 750,000 units - 600,000 units

Batches made: 200 batches - 750 batches

Orders filled: 75 - 200

To calculate the activity rate, we need to use the following formula:

Estimated activity rate= total estimated activity costs for the period/ total amount of allocation base

Extrusion= 83,600/ (200 + 750)= $88 per batch

Handling= 8,800/(75 + 200)= $32 per order

Packaging= 40,500/ (1,350,000)= $0.03 per unit

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4 years ago

Selma owns a beach cottage that she rents to tourists. In the current year she rented the cottage for 90 days. What is the maxim

ElenaW [278]

Answer:

correct answer is option (B) 9 days

Explanation:

given data

rent cottage = 90 days

solution

When assets and anything that is on rent in that case rent is receive. that is get on basis of day of letting rent and it is income for the company

Selma use cottage maximum of 14 day or 10% of the rental day

10% of 90 day is 9 day

correct answer is option (B) 9 days

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3 years ago

Treasury stock is A. stock purchased by a corporation and held as an investment in its treasury. B. stock issued by the U.S. Tre

ioda

Answer:

The correct answer to the following question is option D) a corporations own stock which has been reacquired from stockholders and are not yet retired.

Explanation:

Treasury stocks can be defined as those outstanding stocks which a issuing company has reacquired or repurchased from the stockholders and now company has kept these stocks in their treasury. These repurchased stocks are now no more outstanding shares but they are also not retired because they are held by company in their treasury. While calculating the EPS ( which is earning per share ) , these stocks would not be included, and the effect of the repurchasing of repurchasing on balance sheet would be that the shareholders equity would be reduced ( amount would be equal to the money paid to repurchase the stock ) .

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4 years ago

How many countries are in stage 2 and 3 of demographic transition?

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3 years ago