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Vesnalui [34]
3 years ago
8

Macrosoft Company reports net income of $61,000. The accounting records reveal depreciation expense of $76,000 as well as increa

ses in prepaid rent, accounts payable, and income tax payable of $56,000, $11,000, and $16,000, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Business
1 answer:
melamori03 [73]3 years ago
4 0

Answer:

Cashflow from Operating Activities                  $

Net income                                                         61,000

Add: items not involving movement of cash

Depreciation                                                    <u>76,000</u>

                                                                          137,000

Changes in working capital:

Increase in prepaid rent                                   (56,000)

Increase in accounts payable                           <u>11,000</u>

                                                                            92,000

Less: Tax                                                           <u>  16,000</u>

Cashflow from operating activities                   <u> 76,000</u>

Explanation:

Cashflow from operaing activities  using the indirect method equals net income plus depreciation minus increase in prepaid rent plus increase in accounts payable minus tax.

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1. Barry Cain invested $38,000 cash to start an appliance repair business. 2. Hired an employee to be paid $500 per week, starti
attashe74 [19]

Answer:

No.    Account Titles & Explanation             Debit          Credit

1.

       Cash                                                  $38,000

       Barry Capital Account                                         $38,000

2.

       No Entry Requires as Employee are only Hired there id no financial transaction involved in hiring the employees only.

3.

       Prepaid Rent                                     $10,800

       Cash                                                                     $10,800

4.

       Wages Expense                                $500

       Cash                                                                     $500

5.

       Cash                                                  $2,900

       Revenue                                                               $2,900

Explanation:

1. Cash paid is the capital contribution in the business so cash account will be debited and capital account will be credit as per their nature.

2. Hired an employee does not need any transaction as there is no financial  involvement in just hiring an employee.

3. Prepaid expense is actually an asset for us as we paid expenses in advance which is not incurred yet. It will be recognized as expense with passage of time.

4. Payment to worker is an expenses against a credit to cash as wage is paid in cash.

5. Revenue earned should be recorded and also received so cash will be debited for the receipt from sales and revenue shold be debited due to its nature of account.

8 0
3 years ago
The legal document that describes the rights and obligations of both the bondholders and the issuer is called the bond.
viva [34]

A bond resolution is a legal document that specifies the rights of the issuer and the bondholder, the two parties to the bond contract, and allows the issuance and sale of bonds.

<h3>Who is a bondbondholder?</h3>

An investor or the owner of debt instruments, which are frequently issued by corporations and governments, is known as a bondholder. In essence, bondholders are lending money to the bond issuers. Bond holders receive their principal investment back when the bonds mature in exchange.

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6 0
1 year ago
Matt's factory rents equipment and hires students to produce sports bags. Compare the outputs at which Matt's AVC and ATC curves
stiks02 [169]

The output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set​ in, (E) average fixed cost is decreasing at a faster rate than average variable cost is increasing.

<h3>What is the average variable cost?</h3>
  • In economics, the variable cost per unit is known as the average variable cost.
  • Divide the entire variable cost by the output to get the average variable cost.
  • In the short term, the enterprises use the average variable cost to determine whether to stop production.
<h3>What is the average fixed cost?</h3>
  • The average fixed cost (AFC) is a fixed cost that remains constant regardless of the number of goods and services produced by a corporation.
  • To summarize, the average fixed cost (AFC) is the fixed cost per unit derived by dividing the total fixed cost by the output level.

Therefore, the output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set​ in, (E) average fixed cost is decreasing at a faster rate than average variable cost is increasing.

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Complete question:

​Matt's factory rents equipment for manufacturing sports bags and hires students.

The table gives​ Matt's average total cost schedule and average variable cost schedule.

The output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set​ in, ______.

A.the  total fixed cost initially increases and then decreases

B. total fixed cost is decreasing at a faster rate than total variable cost is increasing

C. average variable cost is decreasing at a faster rate than average fixed cost is increasing

D. total variable cost is decreasing at a faster rate than total fixed cost is increasing

E. average fixed cost is decreasing at a faster rate than average variable cost is increasing

7 0
1 year ago
If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000, a deposit of $4,000 was in transit a
Misha Larkins [42]

Answer:

c) $30,600

Explanation:

Bank statement balance = $36,000

Outstanding checks = ($10,000)

Deposit in transit as at month end = $4,000

Erroneous check charged = $600

Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600

                                                             = $30,600

The right option is c) $30,600

3 0
3 years ago
The Campus Crustacean Company receives $2 per box for its crawfish and is selling 1,600 boxes to maximize its profits. What is t
erik [133]

Answer:

Profit per box of crawfish $0.25

Explanation:

To calculate the Total profit, we can solve the expression;

Total profit=Total selling price-Total purchase price

where;

Total purchase price=(Variable cost per box×number of boxes purchased)+Total fixed costs

Total purchase price=(1×1600)+1,200=$2,800

Total selling price=Selling price per box×number of boxes

Total selling price=(2×1600)=$3,200

replacing in the expression;

Total profit=Total selling price-Total purchase price

Total profit=($3,200-$2,800)=$400

Total profit=$400

To calculate the profit per box;

Total profit=profit per box(p)×number of boxes sold

400=p××1600

p=400/1600=0.25

Profit per box=p=$0.25 per box

7 0
3 years ago
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