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3 years ago

Determining Net Cash Flow from Operating Activities

Business

1 answer:

ivolga24 [154]3 years ago

5 0

Answer:

$67,150

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $12,750

Adjustment made:

Add : Depreciation expense $32,600

Add: Decrease in accounts receivable $21,500

Less: Increase in inventory -$18,300

Add: Increase in accounts payable $19,800

Less: Decrease in interest payable -$1,200

Total of Adjustments $54,400

Net Cash flow from Operating activities $67,150

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Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shar

kifflom [539]

Answer: Option (a) is correct.

Explanation:

Given that,

Dividend in 2016 = $20,000

Preferred Shares = 400

Par Value of Preferred Stock = 400 × 10 = $4000

Rate of Dividend of Preferred Stock = 5%

(a) Dividend to preferred Shareholders:

= Par Value of Preferred Stock × Rate of Dividend

= $4000 × 5%

= $200

(b) Dividend to Common Shareholders:

= Total Dividend - Dividend to Preferred Shareholders

= $20,000 - $200

= $19,800

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3 years ago

Which of the following is a mutually exclusive cost pool used in activity-based cost accounting? a. All of the answers are corre

VikaD [51]

Answer:

The correct answer is A: All of the answer are correct

Explanation:

ABC defines production as consisting of a variety of activities, and it assigns costs to those activities. An activity cost pool is an aggregate of all the costs associated with performing a particular business task, such as making a particular product. By pooling all costs incurred in a particular task, it is simpler to get an accurate estimate of the cost of that task.

Cost pool is created for those costs more closely aligned with the production of goods or services. It is very common to have separate cost pools for each product line. If production batches are of greatly varying lengths, then it has to consider creating cost pools at the batch level, so that it can adequately assign costs based on batch size.

To conclude, the creation of a cost pool and the subsequent assignment of costs will vary according to the length of production and the possibility to discriminate and assign costs.

4 0

3 years ago

Paradise Corp. has determined a standard labor cost per unit of $10.20 (1 hour × $10.20 per hour). Last month, Paradise incurred

bezimeni [28]

Answer:

Direct Labor Rate Variance = $825 favorable

Direct Labor Efficiency Variance = $510 favorable

Total Direct Labor Spending Variance = $1,335 favorable

Explanation:

The computations are shown below:

Direct Labor Rate Variance

= (Standard rate - Actual rate) × Actual hours

= ($10.20 - $16,005 ÷ 1,650 labor hours) × 1,650 direct labor hours

= ($10.20 - $9.7) × 1,650 direct labor hours

= $825 favorable

Direct Labor Efficiency Variance

= (Standard Hours allowed - Actual hours) × Standard rate

= (1,700 units × 1 hour - 1,650 hours) × $10.20

= (1,700 hours - 1,650 hours) × $10.20

= $510 favorable

Total Direct Labor Spending Variance

= Standard cost - actual cost

= 1,700 hours × $10.20 - $16,005

= $17,340 - $16,005

= $1,335 favorable

3 0

3 years ago

During 2020, Stellar Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Stellar for a

Ber [7]

Answer:

What is the amount of gross profit realized during 2020?

(460 x $33.30) + (230 x $29.60) + (276 x $18.50) = $27,232

What is the amount of inventory of unsold straight chairs on December 31, 2020?

[(920 - 460) x $56.70] + [(690 - 230) x $50.40] + [(1,610 - 276) x $31.50] = $26,082 + $23,184 + $42,021 = $91,287

Explanation:

lump sum cost of chairs = $137,655

Type Chairs Selling Price Each Total

Lounge chairs 920 $90 $82,800

Armchairs 690 $80 $55,20

<u>Straight chairs 1,610 $50 $80,500</u>

total 3,220 $218,500

if we allocate costs based on resale, then each chair should cost:

Lounge chairs $90 x ($137,655 / $218,500) = $56.70

Armchairs $80 x ($137,655 / $218,500) = $50.40

Straight chairs $50 x ($137,655 / $218,500) = $31.50

contribution margin per chair:

Lounge chairs $90 - $56.70 = $33.30

Armchairs $80 - $50.40 = $29.60

Straight chairs $50 - $31.50 = $18.50

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3 years ago

Lists jobs that are hiring now for 16+ at the bell air mall

valentina_108 [34]

Idk sorry wish I did tho

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3 years ago