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Reil [10]
3 years ago
10

Assume the perpetual inventory method is used. The company purchased $12,500 of merchandise on account under terms 2/10, n/30. T

he company returned $1,200 of merchandise to the supplier before payment was made. The liability was paid within the discount period. All of the merchandise purchased was sold for $18,800 cash. What is the net cash flow from operating activities as a result of the four transactions
Business
1 answer:
Natali5045456 [20]3 years ago
4 0

Answer:

Net cashflow from operating activities =$7,726

Explanation:

The net cash flow from operating activities would be the sales revenue  less  net purchases.

<em>The net purchases  = total purchases - less the purchases returns</em>

12,500 - 1,200 =11300

<em>The amount due on the purchases less discount</em>

The term 2/10, n/30 implies that the company would get a discount of 2% should it pay within 10 days other it would pay the gross amount due at later date   but on or before the 30th day.

Payment due less discount = 98%× 11300  = 11,074

Net cashflow from operating activities = Net sales - purchases

                                                              =18,800 - 11,074  = 7,726

Net cashflow from operating activities =7,726

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On December 31, Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting e
DerKrebs [107]

Answer:

1. Debit Utilities Expense $215; credit Accounts Payable $215.

Explanation:

The adjusting entry is as follows

On December 31

Utilities Expense A/c Dr $215

       To Accounts Payable A/c $215

(Being the accrued utilities expense is recorded)

Since the utility is an expense so it would be debited to the utility expense and the payment is not made till yet that would become a liability so we credited the account payable

8 0
3 years ago
Meili's employer distributes checks at the end of each quarter, representing an equitable portion of 5 percent of the company's
Goryan [66]

Answer:

profit sharing

Explanation:

profit-sharing plan can be regarded as retirement plan which is designed to let an employee to have a share in the profits of a firm. In this particular plan some percentage of the profit made by the company,firm can be received by the employee using the quarterly or annual earnings of the employee as the basis.

6 0
2 years ago
Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mo
HACTEHA [7]

Answer:

Variable cost = $6,550

Explanation:

Variable cost is the cost incurred during the production process that changes with quantity of goods produced. For example labor, machine operating cost, and raw materials.

The other type of cost is variable cost that does not change with volume of production, but rather remains constant. For example rent, tax, and so on.

In the given instance the costs that are variable are cost of labor, cost of electricity to run printing presses, and cost of ink for paper.

Monthly mortgage and property tax are fixed cost that must be paid regardless of production volume.

variable cost = $5,500 + $800 + $250

Variable cost = $6,550

3 0
3 years ago
Mary-Jo owns a theater. She purchased a new computer to run the accounting software and lighting for the theater. The computer c
Ratling [72]

Answer:

The depreciation for 2020 is $233.33

Explanation:

Under the MACRS, computer useful life is 5 years.

The depreciation rate for every year, applying double declining method is: 100% / 5 = 20%. So, depreciation expenses for first year of the computer is calculated as: Cost of the computer x 20% = = 2,000 x 20% = $400.

As the computer is purchased in May, the year 2020 would only account for 7 month out of the first year of depreciation. Thus 2020 depreciation expenses = First year depreciation x 7/12 = 400 x 7/12 = $233.33

8 0
2 years ago
Alpha company anticipated unit sales of widgets are January, 5,000; February, 4,000; and March 8,000. Alpha consistently maintai
alexdok [17]

Answer:

1. 4,200 units

2.7,200 units

Explanation:

<u>Prepare the Production Budget for January and February</u>

                                                               January                   February

Budgeted Sales                                       5,000                       4,000

<em>Add </em>Budgeted Closing Stock                 3,200                       6,400

Total Production Needed                       8,200                      10,400

<em>Less</em> Budgeted Opening Stock             (4,000)                     (3,200)

Budgeted Production                             4,200                        7,200

Budgeted Opening Stock for January comes from 80% of closing inventory from December !

5 0
3 years ago
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