Answer:
B) $114,000
Explanation:
To calculate the operating cash flows using the top down approach we can use the following equation:
operating cash flow = increase in total sales - increase in total expenses - increase in taxes paid
operating cash flow = $975,000 - $848,000 - ($154,000 - $141,000) = $975,000 - $848,000 - $13,000 = $114,000
I didn't include depreciation since it is normally included to calculate the increase in taxes but taxes were already given.
Answer:
<u>Closing Entries Dated 31, 2016</u>
Dr. Cr.
Closing Income Accounts
Service revenue $186,100
Interest revenue $90,300
Income Summary $276,400
Closing Expense Accounts
Income Summary $153,400
Supplies Expense $96,900
Advertising expenses $18,200
Salaries and wages $21,000
Income tax expense $17,300
Closing Income Summary Account
Income Summary $123,000
Retained Earning $123,000
Closing Dividend Account
Retained Earning $7,800
Dividend $7,800
Explanation:
All the Income and Expenses accounts are closed to Income summary account. The net balance of income summary account is transferred to retained earning account. The dividend balance is also transferred to retained earning account to close it. Ultimately all the balances are netted off in retained earning account.
I have no clue but maybe because the influencer is more popular
Answer:
a) 5.45%
b) 6.98%
Explanation:
We are given the following information in the question:
Mean, μ = 0.8%
Standard Deviation, σ = 2%
We are given that the distribution of profit is a bell shaped distribution that is a normal distribution.
Formula:
a) We have to find the value of x such that the probability is 0.99
P(X < x)
Calculation the value from standard normal z table, we have,
Thus, 5.45% of assets does the company need to be 99% sure that it will have a positive equity at the end of the year.
b) We have to find the value of x such that the probability is 0.999
P(X < x)
Calculation the value from standard normal z table, we have,
Thus, 6.98% of assets does the company need to be 99% sure that it will have a positive equity at the end of the year.
