Answer:
d. $44,700
Explanation:
The preparation of the Cash Flows from Operating Activities - Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $40,000
Add : Depreciation expense $8,000
Less: Decrease in accounts payable -$1,800
Add: Decrease in merchandise inventory $2,500
Less: Increase in accounts receivable -$4,000
Net cash flows from operating activities $44,700
The long term liabilities and the common stock is not relevant. Hence, ignored it
Answer:
amortised loan
Explanation:
Letitia borrowed money from the bank, and according to the loan regulations, she has to pay an equal amount for the rest of two years, which shows that it is a type of amortised loan. In amortised loan customers pay back the loan in stages, and they pay that according to the criteria of the bank.
Answer:
Total direct materials cost variance is $66,000 and it is favorable.
Explanation:
Actual cost = Actual Quantity × Actual Price
= 300,000 × $1.78
= $534,000
Actual cost with selling price = Actual Quantity × Selling Price
= 300,000 × $2.00
= $600,000
The total direct materials cost variance is computed as:
Total direct materials cost variance = Actual cost with selling price - Actual Cost
= $600,000 - $534,000
= $66,000
It is favorable.
Working Note:
Actual Price per lbs = $534,000 / 300,000
= $1.78
The answer to the question above is "brand names cause consumers to be more sensitive to product differences" based on the result of Roberto's taste test. In the blind test, Roberto did not feel the unsavory flavor from the generic store-coke and he prefers that generic store-coke. This test proves that Roberto's taste is distracted by the brand.
