Answer:
As such, the effect on the elements of the financial statements are
Cash increases by $1,045 and receivable decreases by $1100 resulting in a net decrease in assets by $55.
Expense in the statement of other income increase by $55, thereby resulting in a decrease in owner's equity by the same amount.
Explanation:
This type of transaction is called factoring of receivables. When receivable are factored, the company sells the receivable to another and incurs a charge.
This is usually done to ease liquidity pressures.
The entries required on factoring
Debit Cash
Debit Factoring/interest expense
Credit Account receivable
The Factoring charge
= 5% * $1,100
= $55
Amount of cash received
= $1,100 - $55
= $1,045 (posted to cash)
Answer:
10000 before inflation, 10833 after inflation
Explanation:
P = 500000
1 = 10%
Interest calculated = 500000x0.1
= $50000
20%x50000 = $10000
Rate of inflation = (130-120)/120 = 0.833
0.833x100%
= 8.333%
What has to be paid to government
= 10000+(8.333*10000)
= 10833
Before inflation, you owe $10000
After inflation you owe $10833
Answer:
Explanation:
Net Income 490776
Add back depreciation 37752
Add back amortization 4719
Deduct gain on asset disposal (6292)
Increase in receivable (26500)
Decrease in payable (13075)
Increase in inventory (26775)
Increase in salary payable ( 2100)
Cash flow 458,505
The non cash expenses which are depreciation and the amortization cost are added back and non cash income like gain on the disposal of asset deducted to arrive at the net cash flow.
Answer:
B. Cable Television
Explanation:
I'm pretty sure its right sorry if its not
Answer:
The correct answer is option A.
Explanation:
The constant returns to scale refer to the situation when a proportionate change in the input causes an equal proportionate change in the output level.
In this situation, the average total cost which is the ratio of the total cost of production and quantity of output produced remains the same.
The average total cost curve is a horizontal line when the firm experiences constant returns to scale.