Answer:
Preparation of a statement of cash flows involves five steps
1. Compute net cash provided or used by operating activities.
This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.
2. Compute net cash provided or used by investing activities.
This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.
3. Compute net cash provided or used by financing activities.
This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.
4. Compute the net increase or decrease in cash
This is the section where the cash-flow from operating, investing and financing activities is been balanced.
5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.
After the cash-flow from operating, investing and financing activities is been calculated, Then, this section is also computed to derive the Closing/Ending cash balance
Answer: D) saving equals investment as long as NX = 0
Explanation:
The last option was incomplete as it should have said ...NX = 0.
The Income/GDP of a country that is open to international trade is calculated as follows:
Income = Consumption + Investment + Government spending + Net exports
Y = C + I + G + NX
If NX = 0 then the formula becomes:
Y = C + I + G
Investment in this scenario is therefore:
I = Y - C - G
This is the same as savings as savings is calculated by subtracting consumption and government spending from the total income. This is because government spending is derived from taxes so the cash that people get to save is their income less than their taxes and consumption expenses.
S = Y - C - G = Y
Incorporating various types of advertising-related requirements to correct misinformation about materials or potential hazards from various factors is the major strategy the market uses to protect consumers. The process of defending the general public against unethical business activities is known as consumer protection.
Legal provisions for consumer protection are frequently made. These rules are designed to stop companies from using fraud or other specific unfair acts to obtain an edge over rivals or deceive customers. They could also offer more protection to the broader public, even if they are not the intended consumers or producers of the product in question.
To learn more about consumer protection, click here
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Answer:
$1,040,000
Explanation:
The calculation of cost of the inventory is shown below:-
Cost of Goods available for sale = Inventory balance + Purchase to date + Freight In
= $2,000,000 + $5,900,000 + $500,000
= $8,400,000
Cost of Goods Sold = Sales to date - (Sales to date × Gross profits)
= $9,200,000 - ($9,200,000 × 20%)
= $9,200,000 - $1,840,000
= $7,360,000
Estimated loss from fire = Cost of Goods available for sale - Cost of Goods Sold
= $8,400,000 - $7,360,000
= $1,040,000
For computing the estimated loss from fire we simply applied the above formula.
