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3 years ago

Illinois Woodworking Company is preparing its statement of cash flows using the indirect

Business

2 answers:

loris [4]3 years ago

5 0

Answer:

A) The cash receipt of $6490 is shown as a positive cash flow in the investing activities section.

Explanation:

The neet book value of the equipment sold, is a non-cash item, so all the money reveiced from the sale is reflecting on as a positive cash flow in the financing activities section.

kirill [66]3 years ago

4 0

Answer:

A) The cash receipt of $6490 is shown as a positive cash flow in the investing activities section.

Explanation:

The Statement of Cash Flow represents cash receipts and their sources.

A typical CashFlow statement is divided into 3 segments:

Operating Activities
Investing Activities
Financing Activities

Sale & Purchase of Fixed Assets are considered as Investing Activities. Therefore the total cash receipts from such is shown as a positive entry in the statement.

However under the Operating activity, the profit on disposal is adjusted from the Operating Profit when adjusting for items not involving flow of cash. This is if the Cashflow statement is prepared using the indirect method.

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A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2%

Pavlova-9 [17]

Answer:

$P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars$

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

$1.02*5000 units= 5100 units$

And the Total August sales would be given by:

$P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars$

And the correct answer for this case would be:

$63,750

Explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by $12.5 \frac{dollars}{unit}$

And the total sales for the original case would be given by:

$P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars$

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

$1.02*5000 units= 5100 units$

And the Total August sales would be given by:

$P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars$

And the correct answer for this case would be:

$63,750

7 0

3 years ago

Better Chocolates has a new project that requires $838,000 of equipment. What is the depreciation in Year 6 of this project if t

DIA [1.3K]

Answer:

d. $74,749.60 ( depreciation allowance @ 8.92% )

Explanation:

Under Modified Accelerated Cost Recovery System the Office furniture and fixtures, agricultural machinery and equipment, any other property not associated with another class is classified as 7-years property.

These assets are depreciated as follows:

Year Percentage Depreciate

1 14.29%

2 24.49%

3 17.49%

4 12.49%

5 8.93%

6 8.92%

7 8.93%

8 4.46%

In the Sixth year depreciation will be charged by 8.92%.

Asset Value = $838,000

Depreciation Allowance in 6th year = $838,000 x 8.92%

Depreciation Allowance in 6th year = $74749.60

*Option for the given Mcqs are missing and written as follows:

Select one:

a. $80,411.60

b. $74,833.40

c. $89,108.00

d. $74,749.60

e. $89,327.08

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3 years ago

Which of the following would be a good opening statement to make to a new prospect as you visit for the first time with him?

bonufazy [111]

I think the answer is D

6 0

3 years ago

Read 2 more answers

The Caughlin Company has a long-term debt ratio of .25 and a current ratio of 1.50. Current liabilities are $900, sales are $6,2

bija089 [108]

Answer:

Explanation:

3 0

3 years ago

What is the total of tim’s liabilities if he has recorded $50,000 in assets and $40,000 equity on a balance sheet?

miss Akunina [59]

Total assets = Total liabilities + Total stockholders' equity

Total liabilities = Total assets - Total stockholders' equity

Total liabilities = $50,000 - $40,000

Total liabilities = $10,000

Hence, the total of Tim's liabilities is $10,000.

Responsibility is the responsibility of the individual or company and is usually the amount. Debts are settled over time by the transfer of economic interests, including money, goods, or services. The liabilities shown on the right side of the balance sheet include loans, liabilities, mortgages, income receivable, borrowings, guarantees, and accrued expenses.

Liability can be compared to assets. Debt is what you owe or owe. An asset is something you own or owe. In general, liability is an obligation between one party and another that has not yet been exempted or paid. In the accounting world, financial liabilities are also obligatory but are more likely to be defined by past commerce, events, sales, asset or service exchanges, or those that will generate economic benefits in the future.

Learn more about Liability here: brainly.com/question/24534918

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2 years ago