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ss7ja [257]
3 years ago
11

For the just completed year, Hanna Company had net income of $41,500. Balances in the companys current asset and current liabili

ty accounts at the beginning and end of the year were as follows:
December 31
End of Year Beginning of Year
Current assets:
Cash and cash equivalents $ 57,000 $ 78,000
Accounts receivable $ 162,000 $ 188,000
Inventory $ 442,000 $ 370,000
Prepaid expenses $ 11,500 $ 14,000
Current liabilities:
Accounts payable $ 370,000 $ 384,000
Accrued liabilities $ 8,500 $ 12,000
Income taxes payable $ 36,000 $ 27,000
The Accumulated Depreciation account had total credits of $48,000 during the year. Hanna Company did not record any gains or losses during the year.
Required: Use the indirect method to determine the net cash provided by (or used in) operating activities for the year.
Business
1 answer:
mylen [45]3 years ago
3 0

Answer:

$37,500

Explanation:

The computation of the net cash provided or used by operating activities are as follows

Cash flow from operating activities

Net income                          $41,500

Add: depreciation expenses $48,000

Add: Decrease in account receivable ($162,000 - $188,000) $26,000

Less: Increase in inventory ($442,000 - $370,000)  -$72,000

Add: Decrease in prepaid expenses ($11,500 - $14,000)  $2,500

Less: Decrease in account payable ($370,000 - $384,000) -$14,000

Less: Decrease in accrued liabilities ($8,500 - $12,000) -$3,500

Add: Increase in income tax payable ($36,000 - $27,000) $9,000

Cash flow provided by operating activities $37,500

The negative sign indicates the cash outflow and the positive sign indicated the cash inflow

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GenaCL600 [577]

The sale or transfer of goods ordinarily held for sale in course of business is governed by the  Uniform Commercial Code.

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7 0
1 year ago
On November 1, 2018, Master's Co. borrows $500,000 from its bank for five years at an annual interest rate of 10%. According to
romanna [79]

Answer:

b. Liabilities are understated by $4,167 accrued interest payable

Explanation:

7 0
2 years ago
Among the tax proposals regularly considered by Congress is an additional tax on distilled liquors. The tax would not apply to b
Lelu [443]

Answer:

Liquor consumers

Explanation:

Price elasticity measures the degree of responsiveness of quantity demanded to changes in price. Demand is elastic if a small change in price has a great effect on quantity demanded. The coefficient of elasticity is usually greater than 1.

Demand is inelastic if changes in price has little or no impact on the quantity demanded. Coefficient of elasticity is usually less than 1.

The elasticity of demand for liquor is -0.4 while the elasticity of supply for liquor is 3.5. Therefore the demand for liquor is inelastic while the supply of liquor is elastic.

If taxes are imposed on consumers, the quantity demanded wouldn't change or change a little.

If taxes are imposed on suppliers, the quantity supplied would fall more.

Therefore , the burden of tax can be passed on more to consumers.

I hope my answer helps you.

3 0
3 years ago
Sales is in Units of $1000.00 and Advertising is in Units of $100. what is the value of sales increase when we say it is increas
8_murik_8 [283]

Answer:

The value of sales increase when when advertising is increased by one unit is $123.3

Explanation:

The value of sales increase is obtained by differentiating the sales equation (Y) with respect to advertising (X)

Y = 45.9 + 123.3X

dY/dX = 123.3

Increase in sales when advertising is increased by one unit = $123.3

8 0
3 years ago
Everyday fresh is a retail outlet that sells its products at a discounted rate. it expands its product base to a new division th
otez555 [7]
This kind of reasoning is said to be DEDUCTIVE REASONING.
Deductive reasoning is the process of reasoning based on multiple premises that are generally believed to be true. Deductive reasoning usually moves from the general to the specific. For instance, in the question given above, Jason reasoned that if other products are sold at discounted prices, then the items that are newly available will also be sold at discounted prices. 
7 0
3 years ago
Read 2 more answers
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