Answer:
$165
Explanation
The net cash flows from financing activities is the difference between the cash inflows received from finance providers and cash outflows paid to them as shown below:
Net cash flow from financing activities=proceeds from preferred stock+proceeds from subordinated bonds-cash paid for common stock retirement-cash dividends-cash paid to retire notes
Net cash flow from financing activities=$210+$270-$150-$75-$90=$165
Answer:
Jones may decide that the equity method would not be appropriate to account for the investment when Jones Company does not have significant influences over the management/operation of Sandridge Company.
Although an investors holding from 25% of investee is very much likely to have significant influences on the investee, this may not be true all over the times. For Jones, to prove that it does not have significant influences over Sandridge, there may be some following evidences:
+ Jones and Sandridge sign an agreement that Jones surrenders significant rights as a shareholder;
+ There is/are investor(s)/group(s) of investors who has more voting right than Jones and whose visionary/mission for Sandridge is opposite to Jones's.
+ Sandridge tries to reject Jones' influences on its management by seeking lawsuit or by successfully prevent representatives from Jones on its Board of Directors.
Explanation:
Answer:
Gross profit = $790000
Explanation:
Suppose:
Sales = 1000000
Cost of goods sold = 200000
Actual overhead = 100000
Direct labor used = 15000 hours
Predetermined rate = $ 6 per hour
Computation of gross profit:
Sales = 1000000
less:<u> Cost of goods sold</u> =200000
Add: under applied overhead (w#1) = <u>10000</u>
(<u>210000</u>)
Gross profit 790000
(w#1) Applied overhead = Actual labour hours * predetermined rate
= 15000 * 6 = $90000.
Actual overhead = <u>100000</u>
Under applied overhead 10000
Answer:
Conservatism
b. Disclosure Principle
c. consistency principle
d. Materiality Concept
Explanation:
The materiality principle states that accounting principles can be violated only if the amount been considered is small enough that the financial statements will not be misleading
Conservatism states that when uncertainty exists and there is doubt between reasonable alternatives for recording an item, pick the least less favourable outcome.
The disclosure principle states that a company should provide all the necessary information so that users of financial information can make informed decisions regarding the company.
The consistency principle states a firm should use the same accounting principles from period to period.