Answer:
Explanation:
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Question
Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $325,000; Cash paid for rent, $37,000; Cash paid to employees for services rendered during the year, $117,000; Cash paid for utilities, $47,000. In addition, you determine that customers owed the company $57,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,700 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.
Answer:
To maximize her profit, Jennifer should abandon the product.
Explanation:
To maximize the profit Jennifer should keep marginal benefit as higher as she can, this could happen keeping marginal revenue higher and marginal cost lower as much as she can.
In this case marginal cost is higher than the marginal revenue, which is resulting as a marginal loss. Each extra batch being sold will add a loss of $10 ($110-$120).
Jennifer should abandon the product because it will reduce the average marginal benefit or total profit gradually.
For this problem, the bank is liable for the loss of $2,500. It should not have paid check #543. Moreover, the bank is obligatory to honor the written stop-payment order made by Mark for six months. Therefore, Mark does not have the share of liability in this case.
Answer:
$80,700
Explanation:
A partnership begins its first year with the following capital balances:
- Alfred, Capital $50,000
- Bernard, Capital $60,000
- Collins, Capital $70,000
the partnership's net profits should be allocated the following way (drawings made by the partners should decrease their basis, but since the company made a profit they can be included in this distribution)
net income $60,000
partners' drawings plus salaries:
- Alfred ⇒ $5,000
- Bernard ⇒ $18,000 + $5,000 = $23,000
- Collins ⇒ $5,000
interests owed to partners:
- Alfred ⇒ $50,000 x 5% = $2,500
- Bernard ⇒ $60,000 x 5% = $3,000
- Collins ⇒ $70,000 x 5% = $3,500
the remaining $18,000 should be distributed:
- Alfred ⇒ $18,000 x 30% = $5,400
- Bernard ⇒ $18,000 + 30% = $5,400
- Collins ⇒ $18,000 x 40% = $7,200
Collins's basis should increase by $3,500 + $7,200 = $10,700, ending balance = $70,000 + $10,700 = $80,700
Answer: B. Cash flow statement
The "inflow and outflow of cash during a given time period" is called the cash flow. The record of this inflow and outflow for a particular period is called the cash flow statement.
Income (inflow) is debited to a person or company’s account while expenditures (outflow) are credited, resulting to cash on hand.
