1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lara31 [8.8K]
3 years ago
6

Net income of Mansfield Company was $47,000. The accounting records reveal depreciation expense of $82,000 as well as increases

in prepaid rent, salaries payable, and income taxes payable of $62,000, $25,000, and $22,000, respectively. Prepare the cash flows from operating activities section of Mansfield's statement of cash flows using the indirect method.
Business
1 answer:
Helen [10]3 years ago
4 0

Answer:

Cash flows from operating activities

Net Income                                              $47,000

Add: Non cash Expense Adjustments:

Depreciation                                            $82,000

Change in Working Capital:

Prepaid rent                            ($62,000)

Salaries payable                      $25,000

Income taxes payable             <u>$22,000</u>

Less: Net Change in WC                         <u>$15,000</u>

Net Operating Cash flow                        <u>$114,000</u>

Explanation:

Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.

Depreciation is a non cash expense deducted in the calculation of Net income.

Increase in Liability will provide the cash and increase in assets will use the cash. So, the increase in prepaid expense is classified as increase in Assets and Increase in the Salaries payable and Taxes payable are classified as the increase in liability.

You might be interested in
The narrowest definition of the money supply (M1) includes:
fenix001 [56]

Answer:

c. cash, checking account balances, and travelers' checks.

Explanation:

Money Supply is the concept that means the amount of the liquid financial products and total currency in the market or economy. It is regulated the macro-economically by the monetary policy. So, there are types of measures of money supply or stock:

-M0: narrowly, it means the hard currency in circulation

-MB: it equals M0+ the hard currency which are not technically in circulation and in bank reserves.

-M1: it is the most common one and equals M0 plus checking accounts plus travelers’ checks and other checkable deposits.

-M2: covers M1 and saving accounts and CDs.

-M3: it surrounds the larger deposits.

-MZM: finally, this indicates the money market deposits.

That’s why we could notice that M1 narrowly means the cash, checking account and travelers’ checks.

5 0
3 years ago
When a company is able to expand its operations by exporting globally, it can often achieve greater economies of scale which res
gogolik [260]

When a business is able to grow by exporting its products around the world, it can frequently attain larger economies of scale, which leads to reduced unit costs.

A company's production unit cost often goes down as it grows. This reduction is the result of economies of scale. By employing the least expensive production techniques, profits will be maximized.

Consumers' prices are lowered as a result of lower cost-per-unit, which increases their real wages overall and makes it easier for them to locate affordable goods.

Businesses from one country offer their goods and services to clients or consumers in another country through the exporting process.

When a company produces more goods at a larger scale while paying less money on average per unit of output, this is a phenomenon known as economies of scale.

Learn more about economies of scale here:

brainly.com/question/23633985

#SPJ4

8 0
1 year ago
Inthe 1920's, the value of the German mark fell dramatically. in June 1922, a U.S. dollar could buy 320 marks; by December of th
muminat

Answer:

The answer is C: Hyperinflation

Explanation:

Hyperinflation is high and accelerating form of inflation. It results in quick decline of the local currency`s real value. It also leads to increased prices of all goods and consumables

From the data,

In June 1922, 1 german Mark was equal to 0.003125 USD (1/320)

Whereas in December, 1922, the same german Mark was equal to 0.000125 USD. (1/8000)

5 0
3 years ago
What is double entries for debit note received
ivanzaharov [21]
The double entry<span> system of accounting or bookkeeping means that every business transaction will involve two accounts</span>
7 0
3 years ago
The dollar is said to appreciate against the euro if the exchange rate falls. choose one:
alexgriva [62]

For equipment purchased from the United States, European businesses will pay less in euros.

<h3>What would happen if the US dollar increased in value relative to the euro?</h3>

The dollar now "buys" more euros if the exchange rate between the two currencies rises to $1 for 0.94€. As a result, purchasing European items is now more affordable. As U.S.-made goods are now more expensive, U.S. exports would decrease while imports from nations that use the euro would increase.

<h3>What causes the value of the US dollar to rise?</h3>

An increase in the value of one currency in comparison to another is known as currency appreciation. For a variety of factors, including governmental policies, interest rates, trade balances, and business cycles, currencies appreciate against one another.

learn more about dollar is said to appreciate against the euro here brainly.com/question/13825174

#SPJ4

4 0
2 years ago
Other questions:
  • A newspaper advertisement for Cashmere Closet states "This Saturday 9 a.m., 1 Red Cashmere Scarf, worth $299.95… $10.00 First Co
    5·1 answer
  • The lack of women and minorities in senior management positions can be explained by
    10·1 answer
  • Labor unions arose largely in response to the _____. goal of many firms to hire and retain the most highly skilled workers dange
    13·2 answers
  • When the price of a good rises, consumers tend to purchase less of it and buy a relatively less expensive good. This behavior cr
    13·1 answer
  • (b) The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2020. Opposite
    8·2 answers
  • If a person invests in the stock market through a firm that pools funds from a large number of people and buys and professionall
    9·1 answer
  • What does Thomson mean by "freedom of action"?
    15·1 answer
  • A buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counter
    10·1 answer
  • Calculate how many hours his non-salary employees will take to create a large order of 1,000 shoes. What kind of budget would Jo
    7·1 answer
  • On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $4,500, terms 4/10, n/30. On June 20, SH returns to
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!