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lilavasa [31]
3 years ago
8

On October 1. Ebony Ernst organized Ernst Consulting, on October 3. the owner contributed $84,310 in assets in exchange for its

common stock to launch the business. On October 31. the company's records show the following items and amounts.
Cash 10,200
Accounts receivable 15,200
Office supplies 3550
Land 45990
Office equipment 18310
Accounts payable 8,740
Stock 84,310
Cash dividends 2340
Consulting revenue 15,200
Rent expense 3,910
Salaries expense 7,350
Telephone expense 790
Miscellaneous expenses 610

Also assume the following
a. The owners initial investment consists of $38320 cash and $45,990 in land in exchange for Its common stock
b. The company's S18.310 equipment purchase is paid in cash
c- The accounts payable balance of S8,740 consists of the S3.550 office supplies purchase and $5,190 in employee salaries yet to be paid
d. The company's rent. telephone. and miscellaneous expenses are paid in cash.
e. No cash has been collected on the $15.200 consulting fees earned

Required:
Using the above information prepare an October 31 statement of cash flows for Ernst Consulting (Cash outflows should be indicated by a minus sign.)
Business
1 answer:
LuckyWell [14K]3 years ago
3 0

Answer and Explanation:

The Preparation of the statement of cash flows is shown below:-

                                      <u>Ernst Consulting</u>

                                    <u>Statement of cash flows</u>

                                <u>For the year ended Oct 31</u>

<u>Particulars                                                     Amount</u>

Cash flow from operating activities

Cash paid for salaries                  -$2,160

($7,350 - $5,190)

Cash paid for rent                        -$3,910  

Paid cash for telephone

expense                                         -$790  

Paid cash for miscellaneous

expense                                        -$610  

Net cash flow from operating activities          -$7,470

Cash flow from investing activities

Purchase of equipment              -$18,310

Net cash flow from investing activities             -$18,310

Cash flow from financing activities

dividend paid                                 -$2340

Initial investment in Cash              $38,320  

Net cash flow from financing activities             $35,980

Net cash increase/decrease                                $10,200

Beginning Cash                                                      0

Ending Cash                                                           $10,200

Therefore we indicate the minus sign for cash outflow while the positive amount shows cash inflow.

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Answer:

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B) yes no yes

Explanation:

a) Data and Calculations:

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products                                                           X             Y              Z

Units produced                                              2,400      2,900       3,900

Per unit sales value at split-off                   $ 21.00   $ 24.00   $ 24.00

Added processing costs per unit                $ 3.00     $ 5.00     $ 5.00

Per unit sales value if processed further $ 25.00  $ 25.00    $ 30.00

Added profit after further processing        $ 1.00    ($4.00)      $ 1.00

Further processing of the products X, Y, and Z will yield further or added profit of $1.00 from products X and Z, but a loss of $4 from product Y.  Therefore, product Y should not be processed further, unless its cost structure is such that there is a more than $4 profit to be generated and its further processing is necessary for the other two to be sold, that is if the three products must be sold jointly.  In such a case, management could take further analysis to reduce the cost for consumers.

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Dallas Boot Corporation has been asked to submit a bid on supplying 1,000 pairs of military combat boots to the Armed Forces Tra
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Answer:

Dallas Boot Corporation

Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than:_________

= $20.

Explanation:

a) Data and Calculations:

Pairs of military combat boots on the bid = 1,000

Direct material                                     $8

Direct labor                                            6

Variable overhead                                3

Variable selling cost (commission)      3

Fixed overhead (allocated)                  2

Fixed selling and administrative cost  1

Total cost of production and sales $23

Less commission                                 3

Total cost per boot                         $20

b) The bidding price less sales commission will be a price that is greater than $20 per boot.  The extra amount per boot will cover the profit expected from the transaction.

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Presented below is information for Marin Company.
hram777 [196]

Answer:

Debit Accounts Receivable for $104,700; and Credit Sales Revenue for $104,700.

Debit Cash for $85,400; and Credit Accounts Receivable for $85,400.

Explanation:

The (summary) journal entries to record the items noted will look as follows:

<u>Particulars                                   Debit ($)             Credit ($)        </u>

Accounts Receivable                  104,700

Sales Revenue                                                         104,700

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Cash                                             85,400

Accounts Receivable                                               85,400

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Four degrees of competition
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Answer:

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Hope this helps :)

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Answer:

$444,000

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