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
erma4kov [3.2K]
3 years ago
13

Leather Shop earned net income of $ 71,000 after deducting depreciation of $ 5,000 and all other expenses. Current assets decrea

sed by $ 4 comma 000​, and current liabilities increased by $ 9,000. How much was Leather Shops cash provided by operating activities​ (indirect method)?
Business
1 answer:
Thepotemich [5.8K]3 years ago
7 0

Answer:

$89,000

Explanation:

Given that,

Net Income = $71,000

Depreciation = $5,000

Increase in Current Liabilities = $9,000

Decrease in Current Assets = $4,000

Net Cash from Operating Activities:

= Net Income + Depreciation + Increase in Current Liabilities + Decrease in Current Assets

= $71,000 + $5,000 + $9,000 + $4,000

= $89,000

Therefore, the Leather Shops cash provided by operating activities​ (indirect method) is $89,000.

You might be interested in
Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 6 percent, and T-bills are currently yielding 4.9 per
kobusy [5.1K]

Answer:

The best estimate of the company’s cost of equity is 12%

Explanation:

Estimate of the company’s cost of equity = (Required Return as per Capital Asset Pricing Model + Cost of Equity) / 2

Required Return as per Capital Asset Pricing Model = Risk Free rate + Market Risk Premium * Beta

= 4.9 % + ( 6% * 1.2)

= 0.049 + 0.06 * 1.2

= 0.049 + 0.072

= 0.1210

= 12.10%

Cost of Equity = (Expected Dividend/Price) + Growth Rate

= [( $ 1.30 * 1.08) / $ 36] + 8%

= 0.039 + 0.08

= 0.1190

= 11.90%

The best estimate of the company’s cost of equity = (12.10 % + 11.90 % )/ 2

=  24% / 2

= 12%

Hence, the best estimate of the company’s cost of equity is 12%

6 0
3 years ago
Retained earnings is a. The positive cash flows of a company. b. The net worth of a company. c. The owners' equity that has accu
umka2103 [35]

Answer:

The correct answer is letter "C": The owners' equity that has accumulated as a result of profitable operations.

Explanation:

Retained Earnings are the part of the company's net profits it does not pay out as dividends to shareholders. The company retains the money and reinvests it in the company, or uses it to pay off a part of its debt. To see how much profits a corporation has kept, look under the Shareholder's equity in the Balance Sheet.

3 0
3 years ago
Carpet Woes. Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Ca
ella [17]

Answer: The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.

Explanation:

Based on the information given in the question, we should note that the court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.

We should note that under a predominant purpose test, it will apply when the transaction involved is Mena for goods sales and not for the service sales.

4 0
2 years ago
Before setting your prices, it's wise to
Dima020 [189]

"research industry standards" is the answer i believe

4 0
3 years ago
Read 2 more answers
. A business cycle is the a. period of time in which expansion and contraction of economic activity are equal. b. period of time
Mama L [17]

Answer:

c. recurring growth and decline in real GDP.

Explanation:

A business cycle is also called a economic cycle or trade cycle, and it is the fluctuation of GDP up and down along its long term growth trend. A business cycle consists of a period of boom and contraction in sequence.

It shows rise and fall in production of goods and services within a country including output from businesses, individuals, households, nonprofits, and government.

There are 4 stages that make up the business cycle that is peak, recession , trough, and expansion.

3 0
3 years ago
Other questions:
  • Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $170 in cash from a
    12·1 answer
  • __________is a technique to group tasks among workstations so that each workstation has—in the ideal case—the same amount of wor
    9·1 answer
  • If trade between nations is prohibited, a. nations will be unable to specialize in what they are good at and therefore end up co
    5·1 answer
  • Hypothetical Country has $120 in currency, $280 in reserves, and $900 in deposits. There are no excess reserves. Use this inform
    10·1 answer
  • which people represents shareholders within the corporate structure? A. Workers B. presidents C. department heads D. the board o
    7·1 answer
  • Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage
    11·1 answer
  • Describe how McDonald's goods and services were in high demand by incorporating the ideas of needs and wants .
    14·2 answers
  • Pestel analysis for security industry in uk
    6·1 answer
  • Once the adjusting entries are posted, the adjusted trial balance is prepared to a. verify that the debits and credits are in ba
    6·1 answer
  • Without having a plan in place, managers may focus only on _____ instead of keeping a long-range view and anticipating new oppor
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!