Answer:
BEP 378,000
Explanation:
60 - 24 = 36 contribution margin
every units contribution $36 dollars
36 / 60 = 0.6 CM ratio
each dollar of sale generate 60 cents of contribution
226,800 fixed cost / 0.6 CMR = 378,000 BEP in dollars
Answer:
b) Additional paid-in capital.
Explanation:
Closing process in accounting is a period end activities which involves
the movement or transfer of temporary accounts to permanent accounts.
Temporary accounts are all income statement accounts like sales account, rent account, depreciation expense account, telephone expense account e.t.c.
This exercise is to prepare temporary accounts for the next period. since temporary accounts are measured as at period end, the transaction of a period must not be allowed to mix with another, hence the need to always close or bring to zero all temporary accounts.
In the question, all are income accounts except additional paid-in capital
Answer:
a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)
c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)
d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)
Explanation:
Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:
- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.
- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.
- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt
Bondholders regularly receive interest income at a preset interest rate, or coupon rate, for a specified period of time. This is the bond’s maturity period.<span> Holders can also sell the bonds in the bond market at their current market price.
So the Answer is BONDS
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