Answer:
350,000 net income
+69,700 depreciation
+13,300 loss on disposal
433,000 adjusted income
no change in working capital
cash generated from operating activities 433,000
Explanation:
We need to remove from the net incoem the non-monetary terms
The depreication is an accounting concept, it doesn't involve cash disbursements, so it is added.
Also the los son disposal doesn't involve using cash so is also removed.
Rule:
to remove a non-monetary expense we should add it.
to remove a non-monetary gain we should decrease it.
Answer:
Question one:Hardest thing about teaching is to establish connectivity with the students.
Demands and expectations of the parents is another challenge- one of the hardest things teachers face.
Teaching just the curriculum without an autonomy to the teacher to engage with students on other things that will bring in synergy.
Explanation:
Answer:
Future value equals the present value multiplied by one plus the rate of interest in decimals.
Explanation:
Future value = present value x (1 + interest rate)
Interest rate = present value x interest rate
Answer:
1. Prepare an income statement for Allstar for the past month.
The income statement is given below.
Sales $ 410,000
Commission Cost ($ 50,000)
Technology Cost ($ 75,000)
R/D Cost* ($ 200,000)
Selling expenses ($ 10,000)
Admin expenses ($ 35,000)
Net profit $ 40,000
* In absence of information it is assumed that research and development costs of $200,000 meet defination of expense as per accounting standard (IAS 38).
2. Briefly explain why Allstar's income statement has no line for cost of goods sold.
As per question Allstars is a service oriented company. In services oriented company there is no good that company is manufacturing and selling. So there will not be any cost of good sold line item in income statement.
Answer:
B) $330,000
Explanation:
Cash from operating activities involves the cash inflows and outflows that is realised during normal busines s activities. It is the first section that appears in the statement of cash flows.
Other sources of cash flows is from investing activities and financing activities.
Operating cash flow= Net income+ Depreciation- Taxes +/- Change in working capital
Operating cash flow= 300,000+ 60,000- 15,000+ 30,000- 45,000= $330,000
