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inn [45]
3 years ago
7

The following data are taken from the income statement and balance sheet of Freeman Machinery, Inc. Dec. 31, 2018 Jan. 1, 2018 I

ncome statement: Net Income $ 385,000 Depreciation Expense 135,000 Amortization of Intangible Assets 40,000 Gain on Sale of Plant Assets 90,000 Loss on Sale of Investments 35,000 Balance sheet: Accounts Receivable $ 335,000 $ 380,000 Inventory 503,000 575,000 Prepaid Expenses 22,000 13,000 Accounts Payable (to merchandise suppliers) 379,000 410,000 Accrued Expenses Payable 180,000 155,000 Using this information, prepare a partial statement of cash flows for the year ended December 31, 2018, showing the computation of net cash flows from operating activities by the indirect method.
Business
1 answer:
Norma-Jean [14]3 years ago
5 0

Answer:

The answer is attached

Explanation:

Download xlsx
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Delta Company sells bells to customers for $1 each. The variable cost to manufacture the bells is 10 cents. If the rattle depart
ale4655 [162]

Answer:

Option C. $0.11

Option D. $0.95

Explanation:

As we know that the Transfer Price is set at either selling price for an outside market or variable cost plus opportunity cost if the product sold is to internal market present within the organization (Inter group or inter division sales).

However, the division can still charge upper limit price to the division which is $1 market price of the product.

Upper limit = $1

As it is given that the selling of the additional units will be among divisions which means its inter division market. Hence the lower limit will be used here.

Lower Limit = Variable cost + opportunity cost

Here

Variable cost is $10 cents

And

Opportunity cost will be zero here as the division will be using its excess capacity to sell to the other division, so there is no opportunity cost.

So, by putting values, we have:

Lower Limit = $0.1 - $0 = $0.1

Upper limit = $1

Thus the transfer price set for each bell can be between $1 and $0.1. So the $0.11 and $0.95 falls between these range and both are correct options here.

4 0
3 years ago
A firm has current liabilities of $500, a current ratio of 1.5, and a quick ratio of 1.1. calculate the level of inventory for t
SCORPION-xisa [38]

The inventory level will be used by an inventory manager to regulate the optimal time for manufacturing, if they are handling a manufacturer's warehouse, or to demand more if the product is being stored as stock at a store.


To solve this:

Get first the Current Assets this solved by multiplying the current liabilities to the current ratio.

CA = $500 (1.5) = $750


Then get the inventory level by multiplying the current asset to the product of the current liabilities and quick ratio.

Inventory level = $750 (500 x 1.1) = $412,500

4 0
3 years ago
You are working on the toll plaza construction phase of the Grand Harbor Tunnel project. You notice that the concrete being pour
Radda [10]

Answer:

Discuss the concerns you have with the supervisor in charge.

Explanation:

It is wrong under the ethics code to ignore a clear sign that an intervention is required be it in business decision making or in this case, construction. It is your obligation to report any abnormality noticed to the supervisor in charge.

4 0
3 years ago
A company headquartered in the United States has operations in 27 countries. The company purchased a subsidiary to expand operat
Gala2k [10]

Answer: An internal audit is being performed.

Explanation:

Internal Audit is a department or entity that provides structures, corporate organizations, and procedures for persons inside an organization with unbiased, objective assessments.

According to the Chartered Institute of Internal Auditors, the role of internal audit is to provide objective assurance that an organization's risk management, governance and internal control processes are operating effectively.

7 0
3 years ago
Practice: True or False 1. Investment spending is spending on financial assets like stocks and bonds F 2. Transfer payments are
Colt1911 [192]

Answer:

1. False

2. True

3. False

4. False

5. True

6. True

Explanation:

1. False: Investment spending is spending on financial assets like stocks and bonds.

2. True: Transfer payments are not counted in the calculation of GDP.

3. False: If the nominal GDP increases then the economy is definitely experiencing inflation.

4. False: An economy is not at full employment unless there is no unemployment.

5. True: Countries that have generous unemployment benefits tend to have higher natural rates of unemployment. 6. True: Lumberjacks are structurally unemployment when they are replaced by machines.

8 0
3 years ago
Read 2 more answers
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