1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Williford Enterprises has purchased common stock from several companies and has classified them as long-term investments. If the
Tomtit [17]

The way they will record the dividends if they use the fair value method vs. the equity method is A. They will report dividends as income under the fair value method but as a reduction in the investment under the equity method.

<h3>What is a Stock?</h3>

This refers to the shares of a company that denotes a certain ownership percentage for each buyer of the stock.

Hence, we can see that Williford Enterprises has purchased common stock from several companies and has classified them as long-term investments and option A best shows how they would record the dividends.

Read more about the fair value method here:

brainly.com/question/17370892

#SPJ1

5 0
2 years ago
A man buys a racehorse for ​$20 comma 00020,000 and enters it in two races. He plans to sell the horse​ afterward, hoping to mak
Step2247 [10]

Answer:

<h2>A man buys a racehorse for $20,000 and enters it in two races. He plans to sell the horse afterward, hoping to make a profit. If the horse wins both races, its value will jump to $100,000. If it wins one of the races, it will be worth <em>$50,000.</em></h2>

Explanation:

7 0
3 years ago
a semiannual interest of 3.5%. Any money he invests would have to be left in the fund for at least five years if he wanted to wi
Lemur [1.5K]

Answer:

Results are below.

Explanation:

Giving the following information:

The semiannual interest of 3.5%.

A) We need to calculate the nominal interest rate:

Nominal interest rate= 0.035/2= 0.0175

B) Real interest rate:

Real interest rate= (1.0175^2) - 1= 0.03531

It compounds interest twice a year. Therefore, is higher

C) Investment= $8,000

We will use the following formula:

FV= PV*(1+i)^n

n= 10

i= 0.175

PV= 8,000

FV= 8,000*(1.0175^10)

FV= $9,515.56

8 0
3 years ago
2. What are the importance of vocation and business?​
Alik [6]

Answer:

A major part of your life is your vocation. This is your career or even your business. Fulfillment in your vocation can contribute to leading a satisfying and successful life. Factors involved in having a satisfying vocation are that you should have a purpose, help others and be concerned about future generations

5 0
2 years ago
if the change in reserves in the banking system is $40 million, and the required reserve ratio is 10 percent, then the change in
mote1985 [20]

Answer:

True

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • One of the steps the U.S. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm
    9·1 answer
  • To effectively run a business, it is necessary to:
    9·1 answer
  • Dividends are:Multiple Choicepayable at the discretion of a firm's president.treated as a tax-deductible expense of the issuing
    5·1 answer
  • A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is Select one
    12·1 answer
  • Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end of May, the general ledger checking
    14·1 answer
  • The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):
    13·1 answer
  • CodeDesk Inc matches programmers with freelance jobs. It has 35 employees who staff its online chat room. It receives, on averag
    7·1 answer
  • total quality management. B : enterprise resource planning. C : a balanced scorecard. D : corporate social responsibility.
    14·1 answer
  • two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $235,000, variable expenses of $132,600,
    7·2 answers
  • A firm has an inventory period of 94.2 days, an accounts payable period of 40.4 days, and an accounts receivable turnover rate o
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!