Trading of goods because people came back for more
It is reported as foot notes in cashflow statement or in the notes of financial statements.
When an income statement is converted to cash flows from operational operations, noncash items like as depreciation and nonoperating profits and losses are not included. Non-cash investing and financing entails making an investment or purchase using financial instruments other than cash.
The Generally Accepted Accounting Principles (GAAP) are a collection of generally observed financial reporting accounting standards and regulations. The four main constraints of GAAP are objectivity, the materiality, the consistency, and the prudence.
Companies are required by both IFRS and US GAAP to declare any substantial non-cash investment and financing operations, either as a footnote at the bottom of the statement of the cash flows or in notes to the financial statements.
Therefore, the answer is the bottom of the statement of the cash flows or in the notes to financial statements.
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Answer:
It the company buys the units, the effect on income will be an $8,000 decrease.
Explanation:
Giving the following information:
Production costs:
Direct materials= $13.2
Direct labor= 20.8
Variable manufacturing overhead= 3.00
Avoidable fixed manufacturing overhead= 4.5
Unitary cost= $41.5
Outside supplier offer= 10,000 units for $42,3 each
We need to calculate the relevant total cost of each option.
Make in-house:
Total relevant cost= 10,000*41.5= $415,000
Buy:
Total relevant cost= 10,000*42.3= $423,000
It the company buys the units, the effect on income will be an $8,000 decrease.
Answer:
The annuity is worth $5,000 today
Explanation:
We solve using the growing perpetuity formula for present value:
r = 0.06
g = 0.02
C = $200
$200/(0.06-0.02) = 200/.04 = $5,000
