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Karolina [17]
3 years ago
12

Selected information from the accounting records of Dunn's Auto Dealers is as follows: Cost of furniture purchased for cash $ 8,

000 Proceeds from bank loan 100,000 Repayment of bank loan (includes interest of $4,000) 44,000 Proceeds from sale of equipment 5,000 Cash collected from customers 320,000 Purchase of stock of another corporation as an investment 20,000 Common stock issued for cash 200,000 In its statement of cash flows, Dunn's should report net cash inflows from financing activities of:
Business
1 answer:
KIM [24]3 years ago
8 0

Answer:

$23,000

Explanation:

The computation of net cash inflows from financing activities is shown below:-

Net cash inflows from financing activities = Proceeds from the sale of equipment - Cost of furniture - Purchase of stock

= $5,000 - $8,000 - $20,000

= $23,000

Hence, for computing the net cash flow from financing activities we simply applied the above formula.

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Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The vari
Thepotemich [5.8K]

The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:

<u>Explanation:</u>

Concept and region

Financial Statement

The statement is prepared for the specific period which comprises the financial information of the organization. it includes the statement of the income which shows the profitability of the business, balance sheet which shows the financial position in the terms of the asset. liability and capital, and cash flow statement (CFS) which represents the cash flows for the accounting period.

Fundaments

Sales:

It refers the revenue which is earned by the core business of the organization the units sold during the period are multiplied by the selling price per unit in order to determine the amount of sales.

The incremental revenue of the company is $6,000.

8 0
3 years ago
The risk-free rate is 4.5 percent and the market expected return is 10.8 percent. What is the expected return of a stock that ha
GarryVolchara [31]

For this question you can use the CAPM formula:

E(rs) = risk free + (market return - risk free rate)*(beta)

=4.5% + (10.8% - 4.5%) * 1.3

= 4.5% + 8.19%

= 12.69%

----------------

6 0
3 years ago
Wellington Company reported net income of $60,000 in 2017 and $80,000 in 2018. However, ending inventory was overstated by $7,00
olchik [2.2K]

Answer:

2017 Net Income = $53000

2018 Net Income = $87000

Explanation:

The overstatement of ending/closing inventory causes the Cost of Goods Sold (COGS) to be understated and the Gross and Net profit to be overstated by the same amount.

If the 2017 ending inventory was iverstated by $7000, the correct profit figure for 2017 will be $7000 less than is reported.

2017 correct Net Income = 60000 - 7000 = $53000

An overstatment of ending inventory in one year also means and overstatement of opening inventory of the next year. Thus, the 2018 opening inventory is overstated by $8000 and an overstatement of opening inventory means an overstatement of COGS and an understatement of Gross and Net Income by the same amount.

Thus, the correct Net Income for 2018 = 80000 + 7000 = $87000

6 0
3 years ago
The resources used to create wealth are collectively referred to as
Radda [10]
Factors of production im pretty sure
3 0
3 years ago
If the revenue for a certain product is $9.00 each and the company sells x products, then the revenue equation is R = 9x. If the
zvonat [6]

Answer:

The company must sell 10,00 products to break even

Explanation:

If you use the approached suggested in the question,  you can solve for break even quantity by setting revenue to equal cost

R = C => 9x = 50,000 + 4x => 5x = 50,000 => x =10,000

<u>Double check: </u>

10,000 products sold as $9 would fetch $90,000 in revenue

Producing 10,000 products would incur 50,000 + 4 * 10,000 = $90,000 in total costs

=>The solution is correct

3 0
4 years ago
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