ark each of the items in the following list with letters to indicate whether it would be listed as an Asset, Liability or Equity
item on the balance sheet or Revenue or Expense item on the income statement.a.Accounts Receivableb. Sales c.Equipmentd. Supplies Expensee. Cashf.Accounts Payableg.Retained Earningsh. Revenuei.Contributed Capitalj.Cost of Goods Soldk.Notes Payablel.Selling and Administrative Expenses
Operating Activities Section of the Statement of Cash Flows for the year ended December 31, 2018 (using the direct method):
Cash from customers $80,000
Cash to Suppliers -85,000
Cash to Employees -50,000
Income Taxes -11,000
Net Cash flow from Operating -66,000
Explanation:
1. The operating activities section shows inflows and outflows of cash resulting from a company's key operating activities. Operating activities are different from the investing and financing activities of a firm. The investing activities section shows the investments in assets and other entities made by the company, while the financing activities section shows how the company is funded and the repayments made to fund providers in principal and interest.
2. The operating activities section can be prepared using two methods: the direct and the indirect methods. The direct method starts by identifying the cash receipts and payments from operating activities. The indirect method starts with the operating income and makes adjustments for non-cash flows, like Depreciation.
Accountancy There are 6 points on a coordinate plane. The points are (negative 5, 0), (negative 4, 1), (negative 3, 4), (1, negative 2), (2, 4), (5, negative 3).
In the growth phase, the product is positioned in the defined segment, and begins to be accepted by consumers. This causes sales and therefore profits to increase.
Typically, the increase in profits occurs because manufacturing costs are reduced either by economies of scale or by gaining manufacturing experience.
Despite this, competition in this second stage of a product life cycle is usually not very intense. It is likely that new competitors have appeared, but these new players will try to differentiate their product and begin to build their brand positioning.
The key at this stage is to reinforce the positioning and make modifications to adapt the product to the growing demand.
1-b Average days to sell inventory is computed by considering the
= Total number of days in a year ÷ inventory turnover ratio
So
For year 2015, it is
= 365 ÷ 6.05
= 60.33 days
For year 2014, it is
= 365 ÷ 7.09
= 51.48 days
For year 2013, it is
= 365 ÷ 7.14
= 51.12 days
2. As we can see that the aegis industries inc is performing better than the Snow Pack Corporation as aegis industries has 7.14 times in 2015 as compare to the 5.5 times in 2015
