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Anuta_ua [19.1K]
3 years ago
13

7. The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet show

ed long-term debt of $2.21 million. The 2018 income statement showed an interest expense of $255,000. What was the firm's cash flow to creditors during 2018?
Business
1 answer:
irina1246 [14]3 years ago
6 0

Answer:

The firm's cash flow to creditors during 2018 was –$85,000

Explanation:

The firms cash flow to creditors would be calculating by substracting the interest expense of the firm to the long-term debt taken during the period.

Cash flow to creditors = Interest expense – Net new LTD borrowing

Cash flow to creditors = Interest expense – (LTDend – LTDbeg)

Cash flow to creditors = $255,000 – ($2,210,000 – 1,870,000)

Cash flow to creditors = –$85,000

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Accounts receivable $1,050,000Allowance (90,000)Cash realizable value $960,000During 2007 sales on account were $290,000 and col
Flauer [41]

Answer:

a. $ 34,000

Explanation:

The entry when the company wrote off uncollectible accounts:

Debit Allowance for Doubtful Accounts $16,000

Credit Uncollectible accounts $16,000

At the end of 2007, Allowance for Doubtful Accounts before adjusting trial balance: $90,000-$16,000 = $74,000

The company estimates bad debts based on outstanding receivable accounts. So, the amount of Bad debts expense for 2007 should be:

$108,000 - $74,000 = $34,000

The entry will be record:

Debit Bad debts expense $34,000

Credit Allowance for Doubtful Accounts $34,000

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3 years ago
This is what it said when I tried to put a lenny face as a question: Don't use such phrases here, not cool! It hurts our feeling
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Explanation:

3 0
3 years ago
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During fiscal year 2019, Magic Kingdom had sales of $2 million. Its cost of goods sold, selling and general administrative expen
guajiro [1.7K]

Answer:

$300,000  

Explanation:

The computation of the operating cash flow is shown below:

But before that EBIT should be determined

Sales $ 2,000,000.00  

Less : Cost of Goods Sold $1,200,000.00  

Gross Profit    $800,000.00  

Less:  selling and general administrative expenses $500,000.00  

Less: Depreciation expense $900,000.00  

EBIT i.e. Operating Income/(Loss) $(600,000.00)  

Tax at 21% $(126,000.00)

Since it is negative so the tax loss would not be determined  

Now Operating Cash flow

= EBIT × (1 -T) + Depreciation expense - Chane in Working Capital  

= EBIT + Depreciation expense

= -$600,000 + $900,000

= $300,000  

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Why are conflicts of interests a problem in business? (Select the best answer.)
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They can lead to unethical behavior.
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I have emerged as the team leader

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