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
kifflom [539]
3 years ago
8

Sheridan Company had the following transactions that took place during the year: I. Paid amount owing to suppliers $2370. II. Pu

rchased new equipment for $4300 by signing a long-term note payable. III. Purchased a patent and paid $12900 cash for the asset. How what is the total effect of these transactions on free cash flow?
Business
1 answer:
Julli [10]3 years ago
6 0

Answer:

cash flow = $15270

so we can say that free cash flow will be decrease

Explanation:

given data

Paid amount owing = $2370

Purchased equipment = $4300

Purchased patent = $12900

to find out

total effect of these transactions on free cash flow

solution

we get here cash flow that cash flow amount will reduce by the amount of cash paid  that is express as

and equipment is not purchased for cash so that it not affect cash flow so

cash flow = Paid amount owing + Purchased patent   ........1

put here value we get

cash flow = $2370 + $12900

cash flow = $15270

so we can say that free cash flow will be decrease

You might be interested in
In terms of microeconomic analysis, what is the function of utils?.
makvit [3.9K]

Answer:  a measurement of utility

Explanation:

7 0
2 years ago
On December 31, 2020, Blossom Inc. has a machine with a book value of $1,034,000. The original cost and related accumulated depr
dangina [55]

Answer:

A)

Loss on Fire          280,720 debit

Acc depreciation 506,000 debit

Cash                     643,280 debit

      Equipment                     1,430,000 credit

B)

Acc depreciation 526,000 debit

Cash                   1,555,480 debit

      Equipment                     1,430,000 credit

     Gain at disposal                608,480 credit

C)

charitable contribution     1,645,600 debit

accumulated depreciation 500,500 debit

       equipment                                1,430,000 credit

       gain on disposal                          716,100  credit

<u>Questions</u>

A Fire completely destroys the machine on August 31, 2021. An insurance settlement of $643,280 was received for this casualty. Assume the settlement was received immediately.

B On April 1, 2021, Tritt sold the machine for $1,555,840 to Dwight Yoakam Company.

C On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,645,600.

Explanation:

In all cases, the company will write-off the equipment and acc depreciation

A.-

complete depreciation for 2020: 66,000

depreciation until August 31th: 66,000 x 8/12 = 44,000

Total depreciation 104,000

book value 1,034,000 - 104,000 = 924,000

loss: 924,000 - 643,280 = 280,72‬0

b)

complete depreciation for 2020:                   66,000

depreciation until April 31th: 66,000 x 4/12 = 22,000

Total depreciation     88,000

book value 1,034,000 - 88,000 = 946,000

1,555,480 - 946,000  = 608,480

c)

complete depreciation for 2020:                  66,000

depreciation until July 31th: 66,000 x 7/12 = 38,500

Total depreciation                                          104,500

book value 1,034,000 - 104,500 =   929,500

gain: 1,645,600 - 929,500 = 716.100

3 0
3 years ago
On January 1, 2021, Splash City issues $460,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and
Effectus [21]

Answer:

The journal entry is shown below:

Explanation:

Journal Entry.

Jan.1  Cash A/c Dr    $460,000

           To Bonds payable A/c    $460,000

(Bond issue is being recorded)  

Jun.30  Interest Expense A/c Dr    $18,400

           To Cash A/c    $18,400  ($460,000×4% = $18,400)

(Interest is being recorded)

Dec.31  Interest Expense A/c Dr    $18,400

           To Cash A/c    $18,400  ($460,000×4% = $18,400)

(Interest is being recorded)    

3 0
3 years ago
Which of the following would make it easier to maintain an effective collusive agreement in a cartel?
GalinKa [24]

Answer:

A decrease in the elasticity of demand for the cartel's product.

Explanation:

The cartel is under the control of companies operating in the same area. This is undesirable. It is concluded between businesses and these contracts prevent competition. Such arrangements are also prevented by governments, which aims to promote competition among governments across the country. This type of arrangement creates unity and demonstrates business behavior in activities that prevent other competitors from entering the sector.

Adverse effects on consumers include:

1) Higher prices - cartel members can raise prices, which reduces the demand elasticity of any member.

2)  Lack of Transparency - Members may agree to hide prices or hide information such as hidden charges in credit card transactions.

3) Limited production - Members may agree to limit market production, such as OPEC and oil quotas.

4) Build Market - Cartel members can collectively divide a market into regions or regions and not compete in each other's territory.

4 0
3 years ago
How is planning made and why is it important​
lapo4ka [179]

Answer:

planning

Explanation:

it Helps to Set the Right Goals

In particular, planning helps to critically assess the goal to see if it's realistic. It facilitates decision making and allows setting a time frame by predicting when the company can achieve its goal

8 0
3 years ago
Other questions:
  • Can someone plz tell me what is 500-500+50​
    12·1 answer
  • A period of very low inflation would most likely lead to
    11·2 answers
  • A friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good bus
    9·1 answer
  • Which of the following is NOT an end goal of BOTH quality improvement programs and continuous process improvement? Select one: a
    9·1 answer
  • Which of the following is not true of both firms in monopolistic competition and firms in perfect​ competition? A. Both types of
    15·1 answer
  • How to calculate rate of return.
    6·1 answer
  • When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every
    9·1 answer
  • You are evaluating a potential purchase of several light-duty trucks. The initial cost of the trucks will be $194,000. The truck
    8·1 answer
  • If a company decreases its selling price by $4 per unit, due to a decrease in its direct material cost of $4 per unit, the break
    11·1 answer
  • The entrepreneur who does not change the method of production already introduced is.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!