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The correct answer is option D
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it depends what it is for
Answer:
b) $1,950,000
Explanation:
Value of gift cards redeemed with those whose date of redemption has passed, will both have the amount to revenue out of $2,000,000 of the gift cards sold.
Total gift card revenue to be recognized in 2016 = $1,800,000 + $150,000
Total gift card revenue to be recognized in 2016 = $1,950,000
Answer: B. $892.1 million
Explanation:
The Revenue was $939,393 million
When calculating how much cash was generated any increase to the Accounts Receivables is removed from the revenue because it signifies that more sales were made on credit and so have not given the business cash yet.
Any increase in Deferred Revenue must be added because this is Cash that has been given to the business but for accrual purposes cannot be recognized yet. Bottomline however, the Cash has been received.
Increase in Receivables = 309,196 - 221,504
= $87,692 million
Increase in Deferred Revenue= 374,730 - 334,358
= $40,372 million
The Cash generated is therefore;
= 939,393 - 87,692 + 40,372
= $892,073
= $892.1 million
I have attached the Financial Statements of Acme Corporation.