1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ki77a [65]
3 years ago
8

A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained

earnings are net income and cash dividends paid. New equipment is acquired for $67,600 cash. Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit. 1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Business
1 answer:
netineya [11]3 years ago
4 0

Answer:

                               Ikiban Inc.

                     Statement of Cash flows

               For the Year Ended June 30, 2017

Cash flow from operating activities:

Net income                                                               $117,510

Adjustments to net income:

  • Depreciation expense $67,600
  • Decrease in inventory $27,200
  • Decrease in prepaid expenses $1,900
  • Increase in accounts receivable ($18,500)
  • Gain from sale of equipment ($3,000)
  • Decrease in accounts payable ($9,500)
  • Decrease in wages payable ($9,900)
  • Decrease in taxes payable ($2,800)          <u>   $53,000</u>

Net cash flow from operating activities                 $170,510

Cash flow from investing activities:

Purchase of new equipment                                 ($67,600)

Disposal of old equipment                                   <u>   $13,500</u>

Net cash flow from investing activities                 ($54,100)

Cash flow from financing activities:

Issuance of common stock                                   $69,000

Retirement of note payable                                 ($30,000)

Distributed dividends                                           <u>($106,310)</u>

Net cash flow from financing activities                 ($67,310)

Net cash increase                                                   $49,100

<u>Cash balance June 30, 2016                                 $53,000</u>

Cash balance June 30, 2017                                 $102,100

You might be interested in
Yeager Corporation has used regression analysis to perform price elasticity analysis. In doing so management regressed the quant
Olegator [25]

Answer:

b). 72.458 %

a). 24, 213

Explanation:

1). The second option i.e. 72.458% correctly measures the variance percentage brought in the dependent variable(regressed the quantity demanded) by manipulating the independent variable(price elasticity). The first option is wrong as it shows R multiple which is rather the coefficient. The third and the last options are incorrect as they display the intercept employed to determine the quantity and the key error of calculating the standard deviation.

2). The predicted quantity demanded would be 24,213 if the price is fixed at $7.00.

It can be calculated using the formula;

Quantity demanded = Intercept + (Adjusted R squared * Price coefficient)

∵ Quantity Demanded = 56,400.50 + (7 X -4,598.2)

= 24,213

7 0
3 years ago
While preparing a bank reconciliation, a bank service charge was discovered. This adjustment would be recorded with a?
Sedaia [141]

While preparing a bank reconciliation, a bank service charge was discovered. This adjustment would be recorded with a Credit to cash, debit to bank fees expense.

Bank Reconciliation is an important manner in accounting wherein agencies healthy their bank statements with the transactions which can be recorded in their preferred ledger. making ready a financial institution reconciliation statement facilitates businesses to put off viable errors in transactions or bookkeeping.

There are 5 principal kinds of bank reconciliation: financial institution reconciliation, consumer reconciliation, dealer reconciliation, inter-company reconciliation, and business-unique reconciliation.

In bookkeeping, a financial institution reconciliation is a procedure by using which the financial institution account balance in an entity’s books of account is reconciled to the balance said by using the monetary organization inside the maximum latest bank declaration. Any distinction between the 2 figures needs to be examined and, if appropriate, rectified.

Learn more about bank reconciliation here brainly.com/question/15525383

#SPJ4

7 0
1 year ago
The negative effect of innovative ride-sharing services, such as Uber and Lyft, on traditional taxi cab companies is an example
blsea [12.9K]

Creative destruction; People have always used taxis to go around town, but now services like uber, lyft, etc. are replacing them, creating a creative destruction as the negative effect of innovative ride-sharing services.

What is creative destruction?

The process of continuous product and process innovation in which new production units replace outmoded ones is known as "creative destruction." Major areas of macroeconomic performance are affected by this restructuring process, including long-term growth, economic volatility, structural change, and the operation of factor markets. Nearly the long term, the creative destruction process is responsible for over 50% of productivity increase. Recessions cost more than upturns do when restructuring declines as it does at business cycle frequency. Inhibitors to the creative destruction process include have negative macroeconomic effects both immediately and in the future.

Learn more about creative destruction here:

brainly.com/question/26352018

#SPJ4

3 0
2 years ago
The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing t
Alex787 [66]

Answer:

Option B Depreciation expense

Explanation:

The allocation of cost of the plant and equipment for the period being used is the concept of depreciation and is a period cost because when the asset is purchased its value decreases gradually with time which means some of the machinery value would be deminish during the year depending upon the technological factors, life of the equipment, etc. So the period cost will arise regardless of that we either use the asset or not which is the definition of period cost which in this case is depreciation cost and the allocation of cost of plant and equipment over its useful life is also depreciation cost.

8 0
3 years ago
Communicating with people you know or meet to share information or advice about a job defines _____.
Advocard [28]
The answer is career fair.
4 0
3 years ago
Read 2 more answers
Other questions:
  • A company’s shipping division (an investment center) has sales of $2,560,000, net income of $844,800, and average invested asset
    11·1 answer
  • Consider the following accounting terms and definitions:
    13·1 answer
  • If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase:
    9·1 answer
  • Joseph buys a Hummer for $59,000, financing it with a five-year 7.60% APR loan paid monthly. He decides to pay an extra $50 per
    14·1 answer
  • Edith works for Fast Trades, Inc., a brokerage that facilitates frequent, quick securities transactions for investors. Edith ste
    6·1 answer
  • What does the term primary, secondary and tertiary mean in business?
    14·2 answers
  • You are hired by the Chair of the Federal Reserve to manage the trading desk at the New York Fed and the Chair tells you that he
    13·1 answer
  • Ayayai Corp. redeemed $158,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of the bonds at the redemptio
    7·1 answer
  • To succeed in today's competitive marketplace, companies need to be customer centered. Each company must divide up the total mar
    12·1 answer
  • Insolvency occurs when liabilities far exceed available assets.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!