Answer:
D. It helps you keep track of each stage of the editing process
Answer:
($3,000)
An outflow
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
In cash flow statements, an increase in assets(other than cash) is treated as a cash outflow while a decrease is considered as an inflow of cash.
Hence if accounts receivables balance increases from $45,000 i 2018 to $48,000 in 2019, the change of $3,000 will be shown as an outflow.
A firm charges $25 for a product. If the markup is 25 percent, then the fully allocated average cost of the product is $20.
The term "markup" describes the discrepancy between an item's cost and its selling price. In other words, the vendor makes money by charging a premium over the overall cost of the commodity or service.
A business should realise the importance of markup. For instance, developing a sound pricing strategy is one of the most crucial resources a successful company can have. A product or service's markup needs to be high enough to cover all costs and turn a profit.
Retail price = $25
Markup =25% =0.25
Retail price = Average cost of product * (1+Markup)
25 = Average cost of product *1.25
Average cost of product =25/1.25
Average cost of product = $20
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Answer:
net cash provided is $5,635
Explanation:
Amount ($)
Net Income 4,750
Depreciation 885
Change in inventory (200)
Change in accounts payable <u> 200 </u>
Net cash flows from Operation<u> 5,635</u>
The depreciation is a none cash item that was initially deducted to get the net income, hence it is added back in the cash flows statement.
An increase in inventory represents an outflow of cash hence the negative value. The increase in trade payable is an increase in a liability representing an inflow of cash hence it is positive.
