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san4es73 [151]
3 years ago
11

Assume that the Charleston Inc. uses the indirect method to depict cash flows. Indicate where, if at all, an inventory increase

would be classified on the statement of cash flows.
Business
1 answer:
Marianna [84]3 years ago
7 0

Answer:

Operating activities

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

So, it would be classified in the operating section of the cash flow statement

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midshipmen Company borrows $17,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest
irina [24]

Answer:

                                        Debit                            Credit

July 2021

Cash                                 17,500

Loan payable                                                        17,500

June 30, 2022

Loan Payable                   17,500

Interest payable                 2,100

Cash                                                                     19,600

Adjusting Entry's

                                         Debit                                Credit

Interest expense               1050

Interest Payable                                                            1050

Explanation:

Interest for the year = 0.12*17500=2100

Interest expense 2021= 6/12*2100= 1050

6 0
3 years ago
Read 2 more answers
ABC Services reported the following transactions for September, 2013. A) The owner opened the business with a capital contributi
NemiM [27]

Answer:

ABC Services

The total liabilities at the end of September, 2013

= $9,000

Explanation:

a) Data and Calculations:

Capital contribution = $23,500

Equipment = $11,500

Cash payment for equipment = $2,500

Note payable on equipment = $9,000

Insurance expense paid = $1,350

Utility expense paid = $980

Rent paid = $2,000

Sales = $12,000

Cash Sales = $7,200 (60% of $12,000)

Credit Sales = $4,800 (40% of $12,000)

Office furniture paid = $9,700

Therefore, total liabilities at the end of September, 2013 = $9,000.  This represents the note payable for the office equipment purchased in B.

8 0
2 years ago
Presented below are two independent situations.
rewona [7]

Answer: a)Interest expense for Year 2020=$46, 977.50 b) see explanation column

Explanation:

a) Amount of Note payable =  $550,000

Present Value  factor for 3 years at 12%

= PV = 1/(1+r) ^n  

1/ (1+ 12%)^3 =(0.892857143)^ 3 =  0.71178

Present value of Note for land at 2020 = $550,000  x  0.71176 = $391, 479

.136

Interest expense for Year 2020= $391, 479.136  x  12%= $46, 977.50

b) Face value of note = $5,000,000

Present value factor for 4 years at 10 % =

= PV = 1/(1+r) ^n  

1/ (1+ 10%)^4 =(0.909090909)^ 4 =  0.68301345

Present value of the note = $5,000,000 x 0.68301345= $3,415,067.28

Discount on note payable =$5,000,000 -$3,415,067.28 =$1,584,932.72

Journal to record amount of interest to report for 2020

Date   Account                        Debit                      Credit

Jan 2020   Cash                  $5,000,000

Discount on notes payable                             $1,584,932.72  

Notes payable                         $5,000,000

interest revenue                                              $1,584,932.72

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Produce??

Fresh meat?
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3 years ago
How is marketing a service different than for a product?
satela [25.4K]
The marketing of services differs from product marketing because of the four fundamental differences involved in services: services are intangible, inseparable, heterogeneous, and perishable
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3 years ago
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