What is the different between professional and processional human resources?

Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would

bulgar [2K]

Question Completion:

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.

Year 1 Year 2

Amounts billed to clients for services rendered $184,000 $234,000

Cash collected from clients 153,000 183,000

Cash disbursements:

Salaries paid to employees during the year 83,000 93,000

Utilities 26,500 33,000

Purchase of insurance policy 57,900 0

In addition, you learn that the company incurred Utility costs of $31,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the Insurance policy covers a three-year period.

Answer:

1. Net operating cash flow for

Year 1 Year 2

Cash collected from clients 153,000 183,000

Cash disbursements:

Salaries paid to employees during the year (83,000) (93,000)

Utilities (26,500) (33,000)

Purchase of insurance policy (57,900) 0

Net operating cash flow ($14,400) $57,000

1b. Amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets:

Year 1 = $31,000

Year 2 = $82,000

2. Income Statement for the years ended December 31, Year 1 and Year 2:

Year 1 Year 2

Service Revenue $184,000 $234,000

Expenses:

Salaries 83,000 93,000

Utilities 31,500 28,000

Insurance expense 19,300 19,300

Total expenses 133,800 140,300

Net income before tax $50,200 $93,700

Explanation:

Calculations:

Accounts Receivables:

Year 1

Bill to clients $184,000

Cash collected 153,000

Balance $31,000

Year 2

Balance $31,000

Bill to clients $234,000

Cash collected 183,000

Balance $82,000

Insurance Expenses for each year = $57,900/3 = $19,300

Utilities Incurred:

Year 1 = $31,500

Paid 26,500

Payable 5,000

Year 2

Paid 33,000

less Yr, 1 5,000

Incurred $28,000

6 0

3 years ago

Scenario: Elly owns a small coffee shop. She has only one employee. One weekend, she decides to take a break from work. She is w

malfutka [58]

Answer: Option A

Explanation: In simple words, backward induction refers to the process under which an individual starts analyzing a performance from the end results and go backward to the steps to determine where actually the actions went wrong.

This technique is generally used for analyzing complex subjects which requires high technology or knowledge. It helps the individuals to determine what actions should be rectified in future so that same problems would not occur again.

In the given case, Elly is willing to analyze the whole subject by starting right from the results. Hence we can conclude that she is using backward induction.

4 0

3 years ago

How do debt and self financing affect the financial statement

zalisa [80]

Debt in any form worsens the financial position of the company as it is money that the company does not really have and will eventually have to be repaid. if self financing is the same as introducing capital then this would improve the financial standing of the company as this money does not have to be repaid but is the company's to use

6 0

4 years ago

Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be

natka813 [3]

Answer:

IKIBAN INC.

Statement of cash flow using indirect method for

the year ended June 30, 2019

Particulars Amount $

Cash flow from operating activities

Net Income 145,510

Adjustments to reconcile net income to net

cash provided by operating activities

Adjustment for non cash effects

Depreciation 81,600

Gain on sale of equipment -4,300

Change in operating assets & liabilities

Increase in accounts receivable -25,500

Decrease in inventory 34,200

Decrease in prepaid expenses 3,300

Decrease in accounts payable -16,500

Decrease in wages payable -11,300

Decrease in income taxes payable -2,700

Net cash flow from operating activities (A) 204,310

Cash Flow from Investing activities

New equipment purchased -80,600

Equipment sold 12,300

Net cash Flow from Investing activities (B) -68,300

Cash Flow from Financing activities

Cash dividends paid -162,310

($31,000 + $145,510 - $14,200)

Common stock issued 83,000

Notes payable paid -30,000

Net cash Flow from Financing activities (C) -109,310

Net Change in cash = A+B+C $26,700

($204,310 - $68,300 - $109,310)

Beginning cash balance $67,000

Closing cash balance $93,700

6 0

4 years ago

The income statement of Gopitkumar Co. for the month of July shows net income of $3,000 based on Service Revenue $7,000, Salarie

Alja [10]

Answer:

Explanation:

Income Statement

Calculations:

Service revenue = Service revenue+ Services performed but unrecorded = 7000+700 = 7700

Salaries and wages expense = Salaries and wages expense + Accrued but unpaid salaries and wages = 2200 + 500 = 2700

Supplies expenses = Supplies expenses - supplies that are still on hand = 1400 -350 = 1050

Income statement

Service revenue 7700

Expenses:

Salaries and wages expenses 2700

Supplies expenses 1050

Utilities expense 400

Insurance expense 400

Depreciation expenses 350

Total expenses 4900

Net Income (7700-4900) 2800

4 0

3 years ago

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What is the different betweenprofessional and processionalhuman resources?​

What is the different betweenprofessional and processionalhuman resources?