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3 years ago

Rent expense that is paid with cash appears on which of the following statements?

Business

1 answer:

GaryK [48]3 years ago

6 0

Answer:

(E) Both B and D

Explanation:

Any expense related to current year will be part of income statement, as whether paid or not, therefore, option B is correct.

Now, when any expense is paid in cash it decreases the cash balance and accordingly shall be shown as part of operating activities in cash flow statement.

Under indirect method of cash flow statement, net income is considered under which, rent expense is already deducted, therefore, no separate treatment required, and in direct method, the treatment is to deduct such cash paid under operating activities.

Thus, it will also be part of cash flow statement.

Therefore, correct option is

(E) Both B and D

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Cushman Company had $846,000 in sales, sales discounts of $12,690, sales returns and allowances of $19,035, cost of goods sold o

Inessa [10]

Answer:

Explanation:

I'm pretty sure that gross profit is simply just sales-Cost of goods sold

846,000-401,850= 444,150

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3 years ago

You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $24,000

den301095 [7]

Answer:

$3,286.52

Explanation:

Interest rate per annum = 12.00%

Number of years = 25

Number of compounding per per annum = 1

Interest rate per period (r) = 12.00%

Number of periods (n) = 25

Payment per period (P) = $24,000

PV of $24,000 payments after 20 years = P * [1 - (1/(1+r)^n)]/ r

PV of $24,000 payments after 20 years = 24000*[1-(1/(1+12%)^25]/12%

PV of $24,000 payments after 20 years = $188,235.34

Interest rate per annum = 10.00%

Number of years= 20

Number of payments per per annum = 1

Interest rate per period (r) = 10.00%

Number of periods (n) = 20

Future value of annuity (FVA) = $188,235

Annual contribution (P) = FVA/ ([ (1+r)^n - 1] / r)

Annual contribution (P) = 188235/(((1+10%)^20-1)/10%)

Annual contribution (P) = $3,286.52

5 0

3 years ago

Assume that a radiology group practice has the following cost structure: Fixed costs = $500,000 Variable cost per procedure = $2

solniwko [45]

Answer:

(a) $91.67

(b) $687,500

(d) $125; $91.67; $75

Explanation:

(a) Underlying cost structure:

= [($25 × 7,500) + $500,000] ÷ 7,500

= $91.67

(b) Expected total cost:

= $500,000 + ($25 × 7,500)

= $687,500

= $500,000 + ($25 × 5,000)

= $625,000

Estimated total cost at 10,000:

= $500,000 + ($25 × 10,000)

= $750,000

(d) Average cost per procedure at 5,000:

= [($25 × 5,000) + $500,000] ÷ 5,000

= $125

Average cost per procedure at 7,500:

= [($25 × 7,500) + $500,000] ÷ 7,500

= $91.67

Average cost per procedure at 10,000:

[($25 × 10,000) + $500,000] ÷ 10,000

= $75

7 0

3 years ago

The corporate charter of Llama Co. authorized the issuance of 14 million, $1 par common shares. During 2021, its first year of o

Gemiola [76]

Answer:

Llama Co.

The amount that Llama should report as Additional Paid -in Capital in its December 31, 2021 balance sheet is:

= $36 million.

Explanation:

a) Data and Analysis:

Authorized capital, 14 million at $1 par common shares

January 1: Issued 5 million at $19 per share:

Debit Cash $95 million

Credit Common Stock $5 million

Credit Paid-in Capital in Excess of Par-Common $90 million

June 3: Purchased 6 million shares of treasury stock at $33 per share:

Debit Treasury Stock $6 million

Debit Paid-in Capital in Excess of Par-Common $192 million

Credit Cash $198 million

December 28: Sold the 6 million shares of treasury stock at $24 per share:

Debit Cash $144 million

Credit Treasury Stock $6 million

Credit Paid-in Capital in Excess of Par-Common $138 million

Summary of Paid-in Capital in Excess of Par-Common Account:

January 1: Cash $90 million (Credit)

June 3: Cash (192 million) (Debit)

Dec. 28: Cash 138 million (Credit)

Dec. 31: Balance $36 million (Credit)

3 0

3 years ago

In preparation for developing its statement of cash flows for the year ended December 31, 2016, Millennium Solutions, Inc., coll

-Dominant- [34]

Answer:

$7 million

Explanation:

Investing activities: it monitors the operations that include buying and selling long-term assets. The buying is a cash outflow, while the selling is a cash inflow

The computation of the net cash flows is shown below:

Cash flow from Investing activities

Proceeds from sale of equipment $8 million

Acquisition of building for cash -$7 million

Purchase of marketable securities (not a cash equivalent) -$5 million

Collection of note receivable only principal amount $11 million

Net Cash flow from Investing activities $7 million

6 0

3 years ago