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4 years ago

The indirect and direct methods:

Business

2 answers:

Dmitriy789 [7]4 years ago

6 0

Answer:

The indirect and direct methods:

A) Are two allowable methods to present operating activities in the statement of cash flows.

Explanation:

The option A is correct as these two different methods of cash flows are used by different companies and businesses to determine their cash flows.
The option B is incorrect as they don't affect the presentations of operating, investing and financing activities but only limited to cash flows.
The option C is incorrect as indirect method of cash flow is mostly used by the companies as compared to the direct method as direct method take large amount of time.
The option D is incorrect as net cash flow remains the same.

tia_tia [17]4 years ago

5 0

Answer A

Explanation im sure because i got a 100 on my test

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Problem 08-1A Preparing and analyzing a flexible budget LO P1, A1 [The following information applies to the questions displayed

cricket20 [7]

Answer:

The answer is in the explanation

Explanation:

Phoenix Company

Fixed Budget Report

For the 'fear Ended 31st December 2015

Flexible Budget Flexible Budget for

Variable Amount Total Fixed Unit Sales Unit Sales

per unit cost of 14,000 of 16,000

Sales at 210 $ per unit (A) 210 2940000 3360000

Variable cost

Direct Material $ 62.00 $868,000.00 $ 992,000.00

Direct Labor $ 14.00 $196,0000.00 $ 224,000.00

Machinery repairs $ 3.00 $ 42,000.00 $ 48,000.00

Utilities $ 2.00 $ 28,000.00 $ 32,000.00

Packaging $ 6.00 $ 84,000.00 $ 96,000.00

Shipping $ 6.00 $ 84,000.00 $ 96,000.00

Total Variable Expenses (B) $ 93.00 $1,302,000.00 $1,488,000.00

Contribution margin (C=A-B) $ 117.00 $ 1,638,000.00 $ 1,872,000.00

Fixed cost

Depreciation $ 315,000.00 $315,000.00 $ 315,000.00

Plant Management Salaries $ 210,000.00 $210,000.00 $ 210,000..

Utilities $ 180,000.00 $ 180,000.00 $ 180,000.00

Sales Salary $ 235,000.00 $ 235,000.00 $ 235,000.00

Advertising Expenses $ 100,000.00 $ 100,000.00 $ 100,000.00

Salaries $ 241,000.00 $ 241,000.00 $ 241,000.00

Entertainment Expenses $ 85,000.00 $ 85,000.00 $ 85,000.00

Total Fixed Expenses (D) $1,366,000.00 $1,366,000.00 $ I,366,000.00

Net Profit (C-D) $ 272,000.00 $ 506,000.00

Variable Cost Per unit= Variable Cost / 150000

Increase in Operating Income if Sales rise to 18000

Phoenix Company

Forecast contribution Margin Income Statement

For the year Ended 31st December 2015

Sales in Units 15,000 18,000

Contribution Margin Per Unit $ 117 $ 117

Contribution Margin $ 1,755,000 $2,106,000

Fixed Costs $ 1,366,000 $ 1,366,000

Expected increase in Operating Income $ 389,000 $ 740,000

$ 351,000

Income (loss) from operation sale is reduced to 12000

Phoenix company

Forecast contribution Margin Income Statement

For the year Ended 31st December 2015

Sales in Units 15,000 12,000

Contribution Margin Per Unit $ 117 $ 117

Contribution Margin $ 1,755,000 $1,404,000

Fixed Costs $ 1,366,000 $ 1,366,000

Operating Income $ 389,000 $ 38,000

check the attached image for the correct arrangement of the tables and solution

4 0

4 years ago

Niemann Company has a SUTA tax rate of 7.1%. The taxable payroll for the year for FUTA and SUTA is $82,600. The amount of FUTA t

allsm [11]

Answer:

a. $495.60

Explanation:

It is asking for the amount of FUTA

The FUTA rate is 6% but Niemann is paying their State taxes so it get's a discount for 5.4%

<em>His FUTA rate is then 0.6%</em>

$taxable \: payroll \times FUTA$

82,600 x 0.06 = 495.6

3 0

3 years ago

Pasadena Candle Inc. projected sales of 63,000 candles for January. The estimated January 1 inventory is 3,200 units, and the de

Llana [10]

Answer and Explanation:

The Preparation of production budget report in units is shown below:-

Pasadena Candle Inc.

Production budget report

For the year ended Jan 31

Particulars Units

Expected units to be sold 63,000

Add: Desired ending inventory, Jan 31 6,000

Total units available 69,000

Less: Estimated beginning inventory, January 1 -4,300

Total units to be produced 64,700

Therefore we simply deduct the Estimated beginning inventory, Jan 1 from total units available to reach the total units to be produced

6 0

3 years ago

An online movie streaming service charges $14.99 per month for its basic package. However, when a competitor introduced the same

marshall27 [118]

Answer:

The firm reduced its price to maintain its market share.

Explanation:

An online streaming service is providing its basic package at the price of $14.99.

A competitor of the firm offers the same service at $13.99.

The firm in the reaction will also reduce its price to $13.99.

We know that the consumers always prefer the cheaper substitute, so if the competitor was providing the service at a lower price, it was most likely that the consumers will purchase from the competitor.

This would have led to a decline in the demand and thus the market share of the firm. So in order to maintain its market share. The firm reduced its price at the same level as its competitor.

7 0

3 years ago

Which of the indicators listed would be considered performance measures for the innovation and learning perspective? a. Dollars

natita [175]

Answer:

All options are correct.

Explanation:

Innovation and Learning cannot solely be measured by training. Additionally the organization should make sure that the employees are productive. Organization should make sure that employees are satisfied with their jobs in order to retain them in the organization.

The performance measure are listed below.

Employee turnover rate.
Percentage of positions filled with internal applicants.
No. of employees having professional certification.
Employee satisfaction.
No. of suggestions produced by employees.
Training hours per employee.
Training dollars spent per employee.
Technology being spent per employee.
Revenue and income per employee.

4 0

4 years ago