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4 years ago

Which of the following cash flows should be included in the investing Section of the statement of cash

Business

1 answer:

Ber [7]4 years ago

6 0

Answer:

Cash flow items to be included in the investing section of the statement of cash flows under US GAAP

1. Cash received in sale of Equipment

2. Purchase of a piece of land

3. Sale proceeds from debt investments

Explanation:

Cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.

Some examples of investment activity from the company’s perspective would include:

Cash outflow from the purchase of an asset (land, building, equipment, etc.).

Cash inflow from the sale of an asset.

Cash outflow from the acquisition of another company.

Cash inflow resulting from a merger.

Cash inflow resulting dividends paid on stock owned in another company.

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During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,

bulgar [2K]

Answer:

Western Creations Company

1. Income Statements for July and August, under absorption costing:

July August

Sales Revenue $4,320,000.00 $4,320,000.00

Cost of goods sold 3,240,000.00 2,649,600.00

Gross profit $1,080,000.00 $1,670,400.00

Total selling & admin. exp. $169,000.00 $169,000.00

Net Income $911,000.00 $1,501,400.00

2. Income Statements for July and August, using variable costing:

July August

Sales Revenue $4,320,000.00 $4,320,000.00

Variable cost of goods sold 3,081,600.00 2,491,200.00

Contribution margin $1,238,400.00 $1,828,800.00

Fixed expenses:

Total fixed costs 345,000.00 345,000.00

Net income $893,400.00 $1,483,800.00

3a. The reason for the differences in the amount of the income from operations in in (1) and (2) for July is the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

3b. The reason for the differences in the amount of the income from operations in (1) and (2) for August is also the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

Explanation:

a) Data and Calculations:

Number of hats produced = 80,000

Number of hats sold = 72,000

Ending inventory = 8,000

1 Sales $4,320,000.00

2 Manufacturing costs: July August

3 Direct materials $1,600,000.00 $1,280,000.00

4 Direct labor 1,440,000.00 1,152,000.00

5 Variable manufacturing cost 240,000.00 192,000.00

6 Fixed manufacturing cost 320,000.00 320,000.00

Total manufacturing costs $3,600,000.00 $2,944,000.00

Under absorption costing:

Unit cost = $45 ($3,600,000/80,000) $36.80 ($2,944,000/80,000)

Cost of goods sold = $3,240,000 ($45*72,000) $2,649,600 (36.8*72,000)

Ending Inventory = 360,000 ($45*8,000) 294,400 ($36.8*8,000)

7 Selling and administrative expenses:

8 Variable $144,000.00 $144,000.00

9 Fixed 25,000.00 25,000.00

Total selling & admin. exp. $169,000.00 $169,000.00

Under variable costing:

2 Manufacturing costs:

3 Direct materials $1,600,000.00 $1,280,000.00

4 Direct labor 1,440,000.00 1,152,000.00

5 Variable manufacturing cost 240,000.00 192,000.00

8 Variable selling & admin cost 144,000.00 144,000.00

Total variable costs = $3,424,000.00 $2,768,000.00

Unit variable cost = $42.80 ($3,424,000/80,000) $34.60

Cost of goods sold = $3,081,600 ($42.80 * 72,000) $2,491,200

Ending Inventory = 342,400 ($42.80 * 8,000) 276,800

6 Fixed manufacturing cost $320,000.00 $320,000.00

9 Fixed selling & admin. cost 25,000.00 25,000.00

Total fixed costs = $345,000.00 $345,000.00

7 0

3 years ago

During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows:

const2013 [10]

The unit product cost under variable costing is computed as follows:

Direct materials $ 4

Direct labor 7

Variable manufacturing overhead 1

Variable costing unit product cost $12

With this figure, the variable costing income statements can be prepared:

Year 1 Year 2

Unit sales 40,000 units 50,000 units

Sales $1,000,000 $1,250,000

Variable expenses:

The variable cost of goods sold

($12 per unit) 480,000 600,000

Variable selling and administrative

expenses ( $2 per unit) 80,000 100,000

Total variable expenses 560,000 700,000

Contribution margin 440,000 550,000

Fixed expenses:

Fixed manufacturing overhead 270,000 270,000

Fixed selling and administrative 130,000 130,000

expenses

Total fixed expenses 400,000 400,000

Net operating income $40,000 $150,000.

An annual record is a record that public organizations must provide annually to shareholders that describes their operations and economic situations. a report that gives unique information approximately what a corporation has completed and how successful it has been.

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7 0

1 year ago

What do capital controls prevent?

ch4aika [34]

Answer:

What do capital controls prevent?

Speculators from rushing into and out of a country's market and

disrupting its economy.

Explanation:

Capital control entails when a body that regulates money in a country controls the cash inflow and outflow

6 0

3 years ago

Read 2 more answers

The following information is for MTC Harry Company:

neonofarm [45]

Answer:

Results are below.

Explanation:

First, we need to calculate the total manufacturing costs:

total manufacturing costs= Raw materials used in production as direct materials + Direct labor costs + (Manufacturing overhead (actual) - Under-applied manufacturing overhead)

total manufacturing costs= 95,000 + 100,000 + (250,000 - 25,000)

total manufacturing costs= $420,000

Now, the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 130,000 + 420,000 - 145,000

cost of goods manufactured= $405,000

Finally, the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 65,000 + 405,000 - 80,000

COGS= $390,000

3 0

3 years ago

When ships carrying imported goods arrive at U.S. ports, customs officers are responsible for inspecting the goods and determini

azamat

I think The answer is b

3 0

3 years ago