Answer:
$415,000
Explanation:
Following is the formula for cash flow:
<em>Ending Cash Balance = CFO + CFI + CFF + Beginning Cash Balance</em>
<em>CFO = Cash flow from operating activities</em>
<em>CFI = Cash flow from investing activities</em>
<em>CFF = Cash flow from financing activities</em>
We can easily rearrange the formula to find CFO
<em>Ending Cash Balance - CFI - CFF - Beginning Cash Balance = CFO </em>
<em>or </em>
<em>CFO = Ending Cash Balance - CFI - CFF - Beginning Cash Balance</em>
<u>Solution</u>
<em>CFO = $415,000</em>
Answer:
B. One year or the operating cycle, whichever is longer.
Explanation:
Current Assets are assets that can be converted into cash within a year or an operating cycle whichever is longer.
Current Assets are presented first on a balance sheet and arranged in order of liquidity.
Examples of current assets are cash ,
cash equivalents , short-term investments, accounts receivable and stock inventory.
I hope my answer helps you
Answer:
A. The amount of fixed overhead deferred in inventories is $60,000
Explanation:
Unit product cost
Year 1 Year 2
Direct materials $12 $12
Direct labor $5 $5
Variable manufacturing
overhead $5 $5
Fixed overhead
$48 $36
($432,000 ÷ 9,000) ($432,000 ÷ 12,000)
unit product cost $70 $58
Fixed overhead deferred (1,000 × $48) $48,000
Fixed overhead released -$48000
Fixed overhead deferred (3000 × $36) $108,000
Net $48,000 $60,000
The amount of fixed overhead deferred in inventories is $60,000
Answer:
a. Treasury stock cannot be shown as an asset because a company cannot buy itself.
b) Gain or loss on sale of treasury stock is not to be treated as income, it should be added or subtracted from share capital because it is a capital transaction.
c). Treasury stock is not an asset. Dividends received from treasury stock cannot be treated as income, it is only assets that generates income.
Explanation:
When corporations for some strategic reasons and the desire to maintain and stabilize the shareholders wealth decide to buy back some of its shares, that is what is known as treasury stock. It is also called reacquired stock
a. The treasury stock is like a corporation acquiring itself, so it cannot be shown as an asset, it is only a reclassification within the same balance sheet.
b. Gains or loss on sale of treasury stock is not an income transaction, it is a transaction that affects the share capital of the corporation and must be charged to the share capital not the income.
c. Since treasury stock is not an asset, dividend received on treasury stock is not to be treated as income, it is only assets that generates income. it should affect retained earnings.
