Answer:
d. Gain on sale of land
Explanation:
When using the indirect method in calculating net cash flow from operating activities, the net income is adjusted by the following items :
- Non-Cash flow items included in net income
- Changes in Working Capital items in net income.
From the choices given only gain from sale on land which is an income, has to be removed from net income to reach a cash flow figure.
Answer:
$118,860
Explanation:
Gross Margin:
= Revenue - Cost of Goods Sold
= $290,000 - $100,000
= $190,000
Profit before tax:
= Gross Margin - Salaries - Insurance payment - Interest
= $190,000 - $12,000 - $3,600 - $4,600
= $169,800
Insurance payment: Only half of 2-year payment of 7,200 is relevant for this year.
Net Income:
= Profit before tax - Tax at 30%
= $169,800 - (30% × $169,800)
= $169,800 - $50,940
= $118,860
Answer:
$671,300
Explanation:
Calculation to determine Jocasta's adjusted basis in the building.
Adjusted basis =[$750,000-($128,700 - $50,000)]
Adjusted basis=$750,000- $78,700
Adjusted basis = $671,300
Therefore Jocasta's adjusted basis in the building will be $671,300
Answer:
d. shareholder voting rights
Explanation:
Cumulative is characteristic of preferred stock, in that dividend not paid in a year is carried forward and to be paid in the future.
When the preferred stock is non-cumulative, the dividend not paid in a year is forfeited.
Preferred stock or debenture can be convertible into a known number of common stock in the future.
The characteristic of common stock is that it entitles its holders to vote on certain major decisions.
Answer:
D) none of the statements associated with this question are true.
Explanation: Sweezy oligopoly which is also described as a kicked demand model helps to show how prices can be stable without any form of secret agreement between the small number of large Organisations which dorminates in an olygopolistic market.
An olygopolistic market is a market that is filled with a small number of large scale business Organisations.