Answer: $259000
Explanation:
Based on the information provided in the question, the amount of cash provided by operating activities that should appear on a statement of cash flows would be:
Net income = $230,000
Add: Depreciation expense = $22,000
Add: Rent = $7000
Total = $259,000
Answer:
The account "Warranty Liability":
is adjusted at the end of the year
The answer is C.: Is <span>highly complex and likely unworkable
The simplifying assumption is a method that helps us to understand a certain complex system on a much more simpler point of view.
The purpose of creating a model is to make a smaller prototype of an actual system, not the ystem itself. (for example, in a model of Galaxy, it won't include the complex gravitational pulling between the planets)</span>
Answer: d. Calculate his net working capital
Explanation:
A company's liquidity is shown by the current assets that it has. These assets are to be used to pay off current liabilities as well so in checking for liquidity, it is best to remove current liabilities from current assets as this shows how liquid the company is in that period.
This is what the Net Working Capital is. It is a result of deducting the Current liabilities from the current assets. When Thomas calculates this, he will be able to see how liquid his company is and if he is able to pay off short-term debt and still have enough for other transactions.