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3 years ago

Georgia Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following

Business

1 answer:

dedylja [7]3 years ago

7 0

Answer:

A) subtraction from net income under the operating activities section

Explanation:

Under the indirect method to determinate the cashflow from operating activities we reconcile the net income with the change in the net working capital.

The working capital is the current assets and current liabilities.

For this case, the account receivable account, increase to 48,000 from 45,000

This increase means, less sales were collected, so cash "outflow" as the cash from sale is not being converted into cash. It could also be understand as the company use 3,000 in financing their customers. This also is seeing as a decrease in cash flow.

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A mixed economy combines features of other economic system by

aleksandrvk [35]

In a mixed economy, entrepreneurs, businesses and corporations are allowed to pursue their best interests in the market, while government or public programs, organizations, and enterprises are equally permitted to provide services and the like in the market, as well as intervene in areas like trade or taxes.

4 0

3 years ago

Show how the eliminating entries in part a adjust Pearl’s book balances to the correct consolidated balances. Enter Debit and Cr

morpeh [17]

Answer:

a) JOURNAL ENTRIES

Debit Retained Earnings $5,850,000 , Debit Accumulated depreciation $650,000 , Credit Building $6,500,000.

Debit Depreciation $325,000 Credit Accumulated depreciation $325000.

( this is the depreciation for the year on the profit made on the sale by the subsidiary)

b) The balance on the trial balance of Pearl for the asset will be a Carrying balance ( $8,000,000 - [(8000000/20)*3] = $8000000-1200000 =$6,800,000

profit on sale = selling price - carrying value

=$8,000,000 - ($10,000,000- $8,500,000)

= $8,000,000 - $1,500,000

= $6,500,000

depreciation on profit = $6500000/20 = 325,000

accum dep = (325000*2yrs)= $650,000

Explanation:

BELOW IS A COMPLETE QUESTION

Upstream Intercompany Building Transactions

Shiek Shoes sold an administrative building to its parent, Pearl Industries, on January 1, 2018, for $8,000,000. At the time of sale, the building was carried on Shiek’s books at original cost of $10,000,000, with $8,500,000 of accumulated depreciation. At the date of sale, the building had a remaining life of 20 years, and straight-line depreciation is appropriate. It is now December 31, 2020, the end of the accounting year, and you are preparing the working paper to consolidate the trial balances of Pearl and Shiek. Pearl still owns the building.

Required

a. Prepare the required eliminating entries for this intercompany building sale for the December 31, 2020, consolidation working paper.

Enter numerical answers using all zeros (do not abbreviate answers to millions or thousands).

b. What balances does Pearl report in its own trial balance for this building at December 31, 2020?

6 0

3 years ago

There are 4 households in a locality. The annual income of the first household $20,000, the annual income of the second househol

mihalych1998 [28]

Answer:

b) The progressive income tax system

Explanation:

The tax is compulsory contribution levied by the authority in a territory on goods, services, income and profit.

Proportional income tax :Income tax is said to be proportional where the same tax rate is paid by all irrespective of their income bracket.

A progressive income tax is that where the tax rate becomes higher for those income earners in the high income bracket. The tax rates on every dollar earned becomes higher with increase in income.

The regressive income tax is where a lower percentage is paid as tax as the income income increases. Lower rate is paid on additional dollar earned.

The scenario in the question falls under the concept of progressive income tax system

6 0

3 years ago

Read 2 more answers

Aharon exercises 10 stock options awarded several years ago. The following information pertains to the options: (1) each option

ira [324]

Answer: Cost to purchase the options on the exercise date = $1000

Explanation:

Given:

Stock options awarded = 10

Right to buy shares = 10

Exercise price = $10

We'll compute the cost as follow:

Cost to purchase the options on the exercise date = Stock options awarded × Right to buy shares × Exercise price

Cost to purchase the options on the exercise date = 10×10×10

Cost to purchase the options on the exercise date = $1000

Therefore, the correct option is (d)

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3 years ago

A study was done to determine the average commute time per week to and from class for an spc student attending a lecture class.

Blababa [14]

All SPC students who attend lecture classes

6 0

3 years ago