Answer:
$37,000
Explanation:
Working capital indicates the difference between a company's current assets and its current liabilities.
Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.
in this case,
Current assets include
Inventory $50,000
Cash at Bank $ 5,000
prepaid rent <u> $5,000</u>
Total current assets <u>$60,000</u>
current liabilities
Notes Payable $20,000
tax payable <u> $3,000</u>
Total current liabilities <u> $23,000</u>
Working capital
= $60,000 - $23,000
= $37,000
It is number D because if there’s an increase in supply but not change in demand then the equilibrium price will rise and the quantity will increase
All of the above are marketed
Answer:
The company should accept the idea because profit will increase by $24,000.
Explanation:
A company is currently selling 10,000 units of product monthly for $40 per unit.
The unit contribution margin is $27.
The company believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month.
The unit contribution margin is the difference between selling price and variable cost per unit.
An increase in the selling price of $5 will cause the contribution margin to increase by $5, from $27 to $32.
Profits is the product of contribution margin and number of output.
At initial price, the profit was
= 
= $270,000
At the new price the profit will be
= 
- $50,000
= $344,000 - $50,000
= $294,000
The increase in profit
= $294,000 - $270,000
= $24,000
Question Completion:
A)Have no impact on the Net Cash from Operations as depreciation appears in both the Cash Flow and the Income Statement
B)Decrease Net Cash from Operations on the Cash Flow Statement
C)Increase Net Cash from Operations on the Cash Flow Statement
D)Just impact the balance sheet
Answer:
C)Increase Net Cash from Operations on the Cash Flow Statement
Explanation:
When Andrews increases the depreciation charge of $3,144,267 to a higher amount, this will decrease the net operating income. In computing the adjustment to net income for non-cash expenses, the increased depreciation will automatically increase the net cash from operations because of the tradeoff effects. So, on the financial statements of Andrews, specifically on the Statement of Cash Flows, the increased depreciation expense or charge will positively increase the net cash from operating activities.
