Answer:
a. $337,000
Explanation:
Calculation to determine How much cash was provided by operating activities
Using this formula
Cash provided by Operating activities=Net income+Depreciation+Account receivable+Inventories decreased -Prepaid expenses+Accounts payable increased
Let plug in the formula
Cash provided by Operating activities=$240,000 + $50,000 + $10,000 + $30,000 - $1,000 + $8,000
Cash provided by Operating activities=$337,000
Therefore the cash provided by operating activities was $337,000
Answer:
Balance = $1,650
Explanation:
As Norma company has paid 4 months rent in advance, therefore at the end of June, norma company will record its 1-month expense as follows
Adjusting entry at the end of June would be
DEBIT CREDIT
Entry
Rent Expense $550
Prepaid Rent $550
The balance on Norma's prepaid expense would be
Prepaid Rent = $2200
Rent Expense = ($550)
Balance = $1,650
Answer:
Times interest earned (TIE) = 7.4 times
Explanation:
The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,
Times Interest Earned (TIE) = EBIT / Total Interest expense
Where,
- EBIT is the earnings of the company before interest and tax
To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:
EBIT = Net income + tax + interest expense
EBIT = 240000 + 80000 + 50000
EBIT = $370000
Times interest earned (TIE) = 370000 / 50000
Times interest earned (TIE) = 7.4 times
Answer: $10,800
Explanation:
In the above scenario it is worthy of note that the company is the one that pays for Federal and State Unemployment tax.
That means that the employees pay for Federal income tax withheld at $4,000, Social security at 6% and Medicare at 1.5%.
Calculating salaries payable therefore would be,
= 16,000 - 4,000 - (16,000 * 6%) - (16,000 * 1.5%)
= $10,800
Salaries Payable would be recorded at $10,800.
