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3 years ago

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What adjustments would need to be made in the Operating Section of the statement of cash flows prepared under the indirect metho

d to account for the changes in the Accounts Payable and Accrued Expenses account balances for Green Mountain Coffee Roasters?

1 answer:

S_A_V [24]3 years ago

3 0

Add back noncash expenses, such as depreciation, amortization, and depletion.

Explanation:

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On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor busin

Hunter-Best [27]

Answer and Explanation:

The preparation of the lower portion is presented below:

Income from the continuing operation

before income tax $7,800,000

Less: Income tax expenses ($7,800,000 × 25%) (1,950,000)

Income from continuing operation(A) 5,850,000

Discontinued operation:

Loss from operation discontinued components

($15 - $13 - $4.8) ($2,800,000)

Income tax benefits ($2,800,000 × 25%) $700,000

Loss on discontinued operation(B) ($21,000,000)

Net loss (A - B) -$15,150,000

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3 years ago

All else constant, an increase in a firm's cost of debt: a. will lower the firm's weighted average cost of capital. b. will resu

Elanso [62]

Answer:

C

Explanation:

will increasethr firm's capital structure weight of dept.

8 0

3 years ago

A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 50 per

katovenus [111]

Answer:

Explanation:

Forecast usage = 50 %

Actual Usage = 52%

smoothing constant = 0.10

⇒ 50 + 0.10 (52 - 50)

⇒ 50 + 0.10 (2)

⇒ 50 + 0.2 = 50.20

8 0

3 years ago

When individual fishing boats harvest more fish each year in order to maximize profits while, as a result, threatening the fish

zimovet [89]

The answer to the question presented above would be the tragedy of the commons. When individual fishing boats harvest more fish each year in order to maximize profits while, as a result, threatening the fish population with <span>extinction, it is called tragedy of the commons. </span>

4 0

4 years ago

Read 2 more answers

Mark or Make is a bourbon distillery. Sales have been steady for the past three years, and operating costs have remained unchang

schepotkina [342]

Answer:

a. No allocation

2019 2020 2021

Gross Profit on Sales 350,000 349,000 351,000

Less: Operating Expense <u>210,000</u> <u>210,000</u> <u>210,000</u>

Gross Revenue 140,000 139,000 141,000

Rent (Prepaid) 0 0 0

Revenue after Rent paid 140,000 139,000 141,000

Less: Corporate Taxes at 30% <u>42,000 41,700 42,300</u>

Net Income <u>$98,000 $97,300 $98,700</u>

<u></u>

Considerations for No Allocation

- Taxes are to be deducted from Gross Profit.

- Rent not to be deducted from Gross Profit.

b. Comprehensive Allocation

2019 2020 2021

Gross Profit on Sales 350,000 349,000 351,000

Less: Operating Expense <u>210,000</u> <u>210,000</u> <u>210,000</u>

Gross Revenue 140,000 139,000 141,000

Rent (Prepaid) <u>60,000</u> <u>60,000</u> <u>60,000</u>

Revenue after Rent paid 80,000 79,000 81,000

Less: Corporate Taxes at 30% <u>24,000</u> <u>23,700</u> <u>24,300</u>

Net Income <u>56,000</u> <u>55,300</u> <u>56,700</u>

Considerations for Comprehensive Allocation

- Taxes are to be deducted from Gross Profit.

- Rent is to be deducted from Gross Profit.

c. No allocation distorts Mark or Make’s Net Income for all three years. This is because if Rent is not allocated taxes will be calculated on Gross Revenue. That is to say, Rent is a Non-Operating Expense and hence is to be deducted from Revenue to Calculate the Taxes. When Revenue is reduced, obviously, the taxes will be reduced. Hence, less income is seen in Comprehensive Income Statement and more Revenue is seen in Simple - Non Comprehensive Statement.

4 0

3 years ago