All categories

3 years ago

Portions of the financial statements for Peach Computer are provided below.

Business

1 answer:

jonny [76]3 years ago

3 0

Answer:

$128,100

Explanation:

Cash flows from operating activities

Net income $91,000

Adjustment to reconcile

net income to net cash

from operations

Depreciation expenses $47,000

Changes in working

capital

Decrease in accounts re. $4,200

Increase in inventory ($18,500)

Decrease in prepaid rent $1,700

Decrease in income tax payable ($3,800)

Increase in accounts payable $6,500

Net cash flow from $128,100

operating activities.

You might be interested in

On January 1, 2018, Olympic Insurance Company granted 30,000 stock options to certain executives. The options are exercisable no

Artyom0805 [142]

Answer:

Option D. $50,000.

Explanation:

We can solve it by two methods:

Method 1: Conceptually

The 30,000 stock options has vested period of 3 years, which means 10,000 stock options a year. Furthermore, according to accrual concept application in the employee benefits international standard on accounting, the increase in liability for compensating other party for its services is increase in expense. Here, increase in expense is the option fair value which is $5. So the Compensation expense is:

Compensation expense = $5 per stock option * 10,000 Stock Options per year

= $50,000 for the first year 2018

Method 2: Formula Method

As we know that:

Compensation expense for 2018 = Total compensation / Vested period

Here

Total compensation = $5 stock option * 30,000 options

Vested period is 3 years

By putting values, we have:

Compensation expense = (30,000 × $5)/3 years

Compensation expense = $50,000

Don't Forget to rate my answer.

4 0

3 years ago

While setting up their corporation, ming and jie implement a system of governing their organization so that the interests of cor

Dmitriy789 [7]

Corporate government <span />

8 0

3 years ago

Concord Corporation had net sales of $2,409,400 and interest revenue of $38,100 during 2020. Expenses for 2020 were cost of good

andriy [413]

Answer:

Explanation:

In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

The calculation is shown below:

= Net Sales + interest revenue- cost of good sold - administrative expense - selling expenses - interest expense - income tax expense

where,

Income tax expense = (Net Sales + interest revenue- cost of good sold - administrative expense - selling expenses - interest expense) × income tax rate

= ($2,409,400 + $38,100 - $1,463,800 - $222,000 - $286,700 - $48,900) × 30%

= $426,100 × 30%

= $127,830

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

4 0

3 years ago

Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the o

Ede4ka [16]

Solution :

We know that the exchange takes place when the FMV receive is equal to the FMV given up.

Where the FMV = fair market value

The commercial substance means the future cash flows exchange.

The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.

The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :

Transaction Debit ($) Credit ($)

Asset(new) 11,000

Accumulated depreciation(old) 9,000

Asset (old) 28,000

Cash 2000

The journal entries for Delaware Corp. when the exchange lacks the commercial substance.

Transaction Debit ($) Credit ($)

Asset(new) 16,000

Accumulated depreciation (old) 10,000

Loss 2500

Assets (old) 28,000

7 0

2 years ago

When companies recruit people to promote products to friends and other contacts in exchange for free samples or other rewards,

barxatty [35]

Answer:

The answer is: Referral marketing

Explanation:

Referral marketing is like word of mouth marketing, but with a reward.

We are all social creatures, some more than others, and we like to tell our friends about things that might be considered interesting, new, good, etc (a little gossip). We also know by now that advertisement is usually not 100% accurate, so we don´t fully trust it. When one of our friends tells us that they tried product X and it was great, we do trust them and probably will end up buying product X.

4 0

3 years ago