Answer:
Option B It presents variable cost as a slope coefficient
Explanation:
The reason is that the total cost function is:
Y = a + bx
The total cost in this case is Y, a is fixed cost as an intercept, b is variable cost represented as an slope and coefficient and x is level of activity which is independent of Y.
So the right answer is option B.
Answer:
a. -$210,000
b. $455,000
Explanation:
a. Company's net income
Sales. 2,275,000
Less:
Cost of goods sold
1,285,000
Administrative and selling expenses
535,000
Depreciation expense
420,000
EBIT
35,000
Less interest
245,000
Taxable income
-$210,000
Taxes 21%
Nil
Net income
-$210,000
b. The operating cash flow for the year
OCF = EBIT + depreciation - taxes
OCF = 35,000 + 420,000 - 0
OCF = $455,000
c. Net income was negative due to the deductibility of interest expense and depreciation.
The actual operating cash flow was positive due to the fact that depreciation is a non cash expense, and also interest is a financing and not an operating expense.
Answer:
C ) As demand increases,price increases
Six is your answer because if it cost $2.00 and you have 4 it makes sense
Answer:
$155.000
Explanation:
According with the information the person has first calculate the Equity. According with the accounting equation the Assets are equal to Liabilities plus the Equity. The first step is found the equity of the next way:
Equity year 1= Assets- Liabilities
Equity year 1= $210,000 - $85,000
Equity year 1= $125.000
Equity year 1= 125.000- 50.000 (dividends) = $75.000
Nevertheless, the calculation of the net income is measure independent of the operations in the balance sheet.
After you need to calculate the net income:
Net income= Revenues- Expenses
Net income= $275,000- $120,000
Net income= $155.000
As you can see the operations in the income statement only affects are affects by the revenue and the expenses.
