Answer:
(D) Cash proceeds from borrowing
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets. It also includes collections on loans and Cash advance to borrowers
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
Options A, B, and C are the investing activities whereas option D is financing activities.
Answer:
$380,000
Explanation:
Particulars Product 1 (Amount)
Sales $1,400,000
(-) Direct materials ($200,000)
(-) Direct labor ($600,000)
<u>(-) Manufacturing overhead
</u>
Batch level ($400,000*20/80) ($100,000)
Product line level ($600,000*10/50) <u>($120,000)</u>
Gross margin <u>$380,000</u>
So, Dakota Company's gross margin for Product 1 using activity based costing is $380,000
Answer:
STARK COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31
PARTICULARS AMOUNT$
Service Revenue 20,000
<u>Less-Expenses</u>
Supplies expense 200
Interest expense 500
Insurance expense 1800
Utilities expense 1300
Depreciation expense 2000
Wages expense 7500
Total expenses <u>13,300</u>
Net profit <u>$6,700</u>
STARK COMPANY
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31 Amount$
Retained earnings December 31 prior year end 14,800
Add- Net income 6,700
Less- Dividends 3,000
Retained earnings, December 31 Current year end $18,500
Answer:
c. decrease by $10,000 per year.
Explanation:
The contributing margin of a business is sales revenue less the variable cost to produce the product
Contributing margin refers to the profit that is free to be used by the business to pay fixed costs and reserve as net profit.
In this scenario if the department is discounted the fixed expense will reduce by $40,000
This implies that the net income will increase by $40,000 if the department is discontinued.
If the department is discontinued income from the department will reduce by $50,000. That is -$50,000
Net income= -50,000 + 40,000= -$10,000
Answer:
The answer is,
Asset
Most Liquid : $5 bill
Second-Most Liquid : The funds in a savings account
Third-Most Liquid : A bond issued by a publicly traded company
Least Liquid : Your house
The liquidity simply measures the ability to turn in to cash in a relatively short period of time. Cash at hand is the most liquid while property and other movable and immovable assets tends to be a bit difficult to be turned into cash quickly.
Explanation:
