1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sertanlavr [38]
3 years ago
15

The income statement of Sarasota Company is shown below. SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue $6,890,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,410,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,190,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,030,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method.
Business
1 answer:
mr Goodwill [35]3 years ago
5 0

Answer:

Cash flow from Operating Activities

Cash Receipts from Customers                    $7,240,000

Cash Paid to Suppliers and Employees     ($ 6,360,000)

Net Cash from Operating Activities                $880,000

Explanation:

Cash Paid to Suppliers and Employees Calculation :

Cost of goods sold                                     4,700,000

Add Selling expenses                                   460,000

Add Administrative expenses                      700,000

Less Depreciation Expense                          (50,000)

                                                                    5,810,000

Decrease in Accounts Payable                    300,000

Increase in Prepaid Expenses                      160,000

Decrease in Accrued Expenses Payable      90,000

Cash Paid to Suppliers and Employees   6,360,000

Cash Receipts from Customers Calculation :

Sales revenue                                         $6,890,000

Add Decrease in Accounts Receivables  $350,000

Cash Receipts from Customers             $7,240,000

You might be interested in
A leveraged buyout (LBO) Multiple Choice is based on an expectation that the new private owners will not restructure the company
pochemuha

Answer:

Changes the ownership structure of a company from public to private.

Explanation:

A leveraged buyout (LBO) is the acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company.

It is known to change the ownership structure of a company from public to private.

This is because it isn't usually sanctioned by the target company. It is also seen as ironic in that a company's success, in terms of assets on the balance sheet, can be used against it as collateral by a hostile company.

3 0
3 years ago
The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.5 hours
zaharov [31]

Answer:

4400 Unfavorable

Explanation:

Calculation to determine the labor rate variance for the month

First step is to calculate the Standard hours using this formula

Standard hours = Standard labor-hours per unit of output*Actual output

Let plug in the formula

Standard hours= 4.5*1,300 units

Standard hours= 5850

Now let calculate the Direct labor efficiency variance using this formula

Direct labor efficiency variance = (Standard hours - Actual hours)*Standard rate

Let plug in the formula

Direct labor efficiency variance= (5,850-6,100)*17.60

Direct labor efficiency variance= 4400 Unfavorable

Therefore the labor rate variance for the month is 4400 Unfavorable

8 0
2 years ago
LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. A
madam [21]

Answer:

Unitary Contribution margin= $0.6

Explanation:

Giving the following information:

LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. Assuming the production and sales of 750,000 units.

Variable cost= 600,000/2= $300,000

Unitary variable cost= 300,000/750,000= $0.4

Unitary Contribution margin= 1 - 0.4= $0.6

Total contribution margin= $450,000

8 0
3 years ago
Jill earns a salary of $425.00 per week, plus a commission of 20% on all sales. Last week she sold $1,123 worth of goods. How mu
ch4aika [34]
To find 20% of the value of the goods,
1,123 x 20% (this is the same as 1,123 x 0.2)
= 224.6

Add the salary and the commission,
425.00 + 224.6
= 649.60

Therefore Jill was paid $649.60 last week

4 0
2 years ago
Read 2 more answers
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to
suter [353]

Answer:

a) For MACHINE A  

Net Present Value (NPV) 7208

Internal Rate of Return (IRR) 11,48%

For MACHINE B      

Net Present Value (NPV) -13468

Internal Rate of Return (IRR) 6,99%

b)BAK Corp should buy MACHINE A

Explanation:

We use excel or a spreadsheet to calculate net present value and the profitability index of each machine. See document attached.

We use a cash flow to solve this problem.

At moment 0 we have the investment cost , in this case Original cost $76,700 $183,000 for Machine A and Machine B . From period 1 to period 8, we have inflows and outflow. (Estimated annual cash inflows $20,200 $40,500  

Estimated annual cash outflows $5,040 $9,870).

Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the profitability index, IRR.  

Download xlsx
8 0
2 years ago
Other questions:
  • Amelia has been working as a teataster for approximately 15 years. She visits tea gardens in the country of Bodonia to grade tea
    12·2 answers
  • Under what section of the Statement of Cash Flows would you classify the purchase of equipment by issuing a long-term note payab
    7·1 answer
  • Working for the internal Revenue service is a career in public safety. True or false?
    15·2 answers
  • Which of the following statements about health insurance is false
    11·1 answer
  • Milltown Company specializes in selling used cars. During the month, the dealership sold 31 cars at an average price of $15,900
    10·1 answer
  • What do liquidity ratios measure? Select one:
    7·1 answer
  • In an inert organizational culture, poor working relationships frequently develop between the organization and its employees. th
    7·1 answer
  • The advantage to departmentalizing by the function performed is Group of answer choices A. increased accountability for product
    13·1 answer
  • The four types of promotion that are commonly used are personal selling, sales promotion, advertising, and relations. о O a) Pri
    6·1 answer
  • 4. What are the major benefits of business ownership?​
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!