Answer:
The adjusted balance for Insurance Expense for the year will be $5,270
Explanation:
Prepaid Insurance is the value of Insurance paid before it becomes accrued and it is an current asset balance. It will be accrued as each month passes the monthly amount will be charged as expense and transferred to the Insurance expense account.
Unadjusted values:
Insurance Expense = $2,570
Prepaid Insurance = $3,900
Adjustment value of the insurance = $2700
Adjusted values:
Insurance Expense = $2,570 + $2,700 = $5,270
Prepaid Insurance = $3,900 - $2,700 = $1,200
Answer:
Cash flow from operating activities 992,000
Explanation:
revenue 2,000,000
expenses 800,000
before tax income 1,200,000
tax rate 34% <u> (408,000) </u>
Net Income 792,000
Non-monetary
depreciation 200,000
Cash flow from operating activities 992,000
To solve this we use the indirect method.
We will calculate the net income as usual and once we got there, we remove the non-monetary expeses or revenues.
Always, the depreciaton must be removed.
The depreciation is an accounting tool to distributethe cost of fixed assets during time, it do not represent an actual cash disbursement.
This means our cash flow is greater than net income by this amount.
Answer:
$5 million
Explanation:
As we know the asset is financed from two capital sources equity and liability.
Using Accounting equations as follow
Assets = Equity + Liabilities
Total Assets Value = Equity Value + ( Account Payable + Accrued expenses + Long-Term Debt )
As we both sides are not equal, asset are more that the sum of equity and liabilities so we need more borrowing to finance the assets.
$50 million = $25 millions + ( $8 million + $2 million + $10 million ) + Additional Borrowing
$50 million = $25 millions + $20 million + Additional Borrowing
$50 million = $45 millions + Additional Borrowing
Additional Borrowing = $50 million - $45 millions
Additional Borrowing = $5 million
Answer:
Early Majority
Explanation:
Early Majority -
It consists of around 34% of the total population, these are the type of people, who adapts to a innovative goods or services after some varying degree of time , is referred to as the Early Majority .
They take the time period to get their hands on the new stuff is much longer time in comparison to the early adopters and innovators .
As these people smartly goes through the complete analysis of the product , all the review and wait for the price to get down and buys on the best price .
Hence, from the given scenario of the question ,
The correct answer is Early majority.
