Economists describe the group that includes: natural resources, capital, human resources, and entrepreneurship as ______

CA5-5 WRITING (Cash Flow Analysis) The partner in charge of the Kappeler Corporation audit comes by your desk and leaves a lette

zvonat [6]

Answer:

Explanation statement of cash flow for the year ended December 31.2017

Cash flow from operating activities

Net income 100,000

Add back depreciation 10,000

Add back amortization 1,000

Add back loss on asset sales 5,000

Increase in account receivable(40,000)

Increase in inventory (35,000)

Decrease in accounts payable (41,000) (100,000)

Net cash from operating activities 0

Cash flow from investing activities

Sales of land 25,000

Purchase of equipment (100,000)

Purchase of Land (200,000)

Net cash from investing activities (275,000)

Cash from financing activities

Payment of dividends (10,000)

Redemption of bonds (100,000)

Bet cash from financing activities (110,000)

Net decrease in Cash ( 385,000)

Cash balance in January 1, 2017 400,000

Cash balance in December 31 , 2017 15,000

<u>Workings</u>

1)

The disparity between the net income and the cash floe are as a result loss of cash to operating activities as a result of cash tied down to increase in receivable and inventory and also to an increase in payable leading to an overall cash generated by operating activities of 0

Moreover , a larger portion (300,000) of the opening cash balance(400,000) for the year was used in acquiring land and equipment and also 100,000 used in the redemption of bond. , even though this reduced the interest expense and improve equity , yet it was a big blow to the cash flow.

2)

The importance of cash flow is that it helps to analyse and monitor cash movement and cash available for the purpose of business activities towards liquidity and long term solvency.

3)

Renewable sources of cash flow are generated from the company's operating activities as the cash used for the financing and operating activities are generated from this medium.

4)

Suggestion to improve cash flow for Kappler are

Reduce the level of inventory held
Negotiate with the account payable for a longer trade payable payment period
Reduce the trade receivable collection period
Payment of dividends and redemption of bonds van be suspended till alter date when adequate cash is available
it can also negotiate for external sources of financing

4 0

3 years ago

Atlanta, Inc., planned and actually manufactured 180,000 units of its single product in 2017, its first year of operation. Va

steposvetlana [31]

Answer:

Net operating income= 1,080,000

Explanation:

Giving the following information:

Units produced= 180,000

Variable manufacturing cost was $ 17 per unit produced.

The variable operating (nonmanufacturing) cost was $ 10 per unit sold.

Planned and actual fixed manufacturing costs were $ 900,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $ 360,000.

Atlanta sold 120, 000 units of a product at $ 44 per unit.

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary fixed overhead= 900,000/180,000= $5

Unitary production cost= 17 + 5= 22

Sales= 120,000*44= 5,280,000

COGS= 22*120,000= (2,640,000)

Gross profit= 2,640,000

The variable operating ocsts= 120,000*10= (1,200,000)

Fixed operating costs= (360,000)

Giving the following information:

Units produced= 180,000

Variable manufacturing cost was $ 17 per unit produced.

The variable operating (nonmanufacturing) cost was $ 10 per unit sold.

Planned and actual fixed manufacturing costs were $ 900,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $ 360,000.

Atlanta sold 120, 000 units of a product at $ 44 per unit.

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary fixed overhead= 900,000/180,000= $5

Unitary production cost= 17 + 5= 22

Sales= 120,000*44= 5,280,000

COGS= 22*120,000= (2,640,000)

Gross profit= 2,640,000

The variable operating ocsts= 120,000*10= (1,200,000)

Fixed operating costs= (360,000)

Net operating income= 1,080,000

5 0

3 years ago

Journalize the adjusting entries from the adjustments columns of the worksheet. (Credit account titles are automatically indente

Crazy boy [7]

Answer:

The following are the adjusting entries and the amounts entered are supposed and imaginary.

Explanation:

Date Account Titles and Explanation Debit Credit

Mar. 31 Supplies Expense Dr 10,000

Supplies Account Cr 10,000

When supplies are expensed out. If supplies have a balance of 30000 and 10000 is used up.

Mar. 31 Depreciation Expense Dr 5000

Accumulated Depreciation Cr 5000

Depreciation expense amounts to 5000 for the current year

Mar. 31 Unearned Service Revenue Dr 3000

Service Revenue Cr 3000

Unearned Service Revenue is a liability of the person or company.

Mar 31. Salaries and Wages Expenses Dr 2000

Cash Cr 2000

Slaries and wages paid in full by cash to 2000

6 0

3 years ago

Is a stackelberg solution a Nash (stable) equilibrium? Explain. 2. Does the solution change if stackelberg game is considered in

e-lub [12.9K]

The Stackelberg solution can be used to find the perfect or stable Nash equilibrium or equilibria.

<h3>What is this equilibrium about?</h3>

Other answers:

Based on the above, Note that the strategy profile is one where one serves best each player, and based on the strategies of the other player and it covers the fact that all player playing in a Nash equilibrium must be in every subgame.

Note also that The Stackelberg leadership model is said to be a kind off strategic game that is played in economics where the leader firm is known to moves first and then the follower firms is said to then move in a sequential manner and I think, the solution do not change if stackelberg game is considered in the long run.

I believe that the stackelberg leader will not collude with the stackelberg follower but in a lot of cases, there may be a collusion.

Yes, a Stackelberg leader can be more likely or less likely to merge with the follower firm as a merger can be profitable to them.

Learn more about equilibrium from

brainly.com/question/517289

#SPJ1

8 0

2 years ago

Which of the following is an ethical issue in marketing information

murzikaleks [220]

Answer:

Which of the following is an ethical issue in marketing information management?

The ethical issue in marketing information management has to do with How to store customers' information securely. This must be done in such a way that customers information are not leaked out in order not to bridge the trust issue entrusted in them by the customer.

Explanation:

6 0

4 years ago

Economists describe the group that includes: natural resources, capital, human resources, and entrepreneurship as _______.