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NNADVOKAT [17]
3 years ago
9

Earned net income of $65,000 after deducting depreciation of $8,000 and all other expenses. Current assets decreased by $7,000​,

and current liabilities increased by $9,000. How much was Salem Nursery's cash provided by operating activities​ (indirect method)?
Business
1 answer:
Drupady [299]3 years ago
7 0

Answer:

Cash provided by operating activities is 89.000

Explanation:

The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Notice the amounts of any decreases are in parentheses.

Net income 65.000

Adjustment to reconcile the net income to cash  

+ Depreciation expense 8.000

+ Current assets decrease 7.000

+ Current liabilities increase 9.000

Net cash 89.000

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A higher price point should create value for the customer. The buyers need to know that they are paying for __________, or an un
nlexa [21]

Answer:

Differentiation.

Explanation:

The concept of value for the customer corresponds to the expectation that the product will meet the needs, desires and features that he expects.

The customer's perception of the concept of value is affected in rational and irrational ways, such as brand image, product performance, high price, etc.

Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.

Differentiated products are those produced in a more heterogeneous way compared to standard products, therefore differentiated products have distinct characteristics that add greater value, such as new features, technology, design, durability, style, etc.

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3 years ago
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Builtrite's upper management has been comparing their books to industry standards and came up with the following question: Why i
Vesna [10]

Answer:

Builtrite has higher than average operating expenses

Explanation:

Subtracting cost of goods sold from net sales will give you gross profit. The reason of high gross profit could be company is able to sell its products at a higher price or it is able to keep its cost of goods sold at a lower level than industry standards.

A higher-than-industry-average gross profit margin increases your chances of generating a net profit provided that you are able to keep your expenses within industry average levels.

Operating profit is the pre-tax profit or in other words it is calculated by subtracting operating expenses from the gross profit. Operating profit margin is equal to operating income divided by the total revenue. A lower operating margin despite of having higher gross profit is because the company is not able to control its operating expenses or in other words they are incurring higher operating expenses as compare to industry.

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In early year 8, Alice sold Tom, her son, 20 shares of common stock for $20,000. Alice had paid $25,000 for the stock in year 2.
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He must report 15,000 gain in his year 8 tax...........

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The suggestion suitable for Juan’s situation is for Juan to check out the enterprises zones in the Colorado. Having to check this out will help him to know where to locate his small business and to have a solution in terms of limiting his tax liability in his business.

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