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4 years ago

The income statement disclosed the following items for 2016:

Business

1 answer:

-Dominant- [34]4 years ago

6 0

Answer:

$527,610

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is presented below:

Cash flow from Operating activities

Net income $508,000

Adjustment made:

Add : Depreciation expense $57,600

Less: Gain on disposal of equipment -$33,600

Less: Increase in accounts receivable -$8,960

Add: Decrease in inventory $5,120

Less: Decrease in accounts payable -$6,080

Add: Increase in income tax payable $1,410

Add: Increase in dividend payable $2,200

Add: Increase in prepaid insurance $1,920

Net Cash flow from Operating activities $527,610

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Answer:

The correct answer is: Cost-Plus Pricing Strategy.

Explanation:

To begin with, a ''Cost-Plus'' is the name that a pricing strategy receives in the field of marketing and business that mainly focuses on the pricing of a product by the cost of it plus a certain porcentage of benefit, considering this last one as the benefit margin. Moreover, this type of pricing strategy is one of the most common ones in the field, typically the businesses use this type of pricing strategy due to the fact that it is easy to establish and it does not consider complex terms.

Secondly, in this case where the manager notices such a difference in the prices of the two cans is due to the fact that the manufacturer put less commodities and less effort in the can of 16-ounce rather than in the other can of 32-ounce where there is more soup and therefore there is more cost in that can, establishing that a higher price must put in that one.

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4 years ago

The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. The closer w

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Answer:

The correct answer is False.

Explanation:

The amortization operation consists of regularly distributing the repayment of the principal (C0), together with the interest accrued throughout the life of the loan. The periodic payments made by the borrower are therefore intended to reimburse, extinguish or amortize the initial capital. This justifies the name of the depreciation transaction and the depreciation terms that are usually assigned to these payments.

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3 years ago

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That recreation was viewed by society

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3 years ago

Managers of Wendy's fast-food restaurants keep track of prices at competitors such as McDonald's, Burger King, and Arby's, knowi

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Answer:

It will affect Wendy's fast- food sales negatively.

Explanation:

Especially if the competitors have larger market share than Wendy's Fast-food. There will be a switch in consumers from Wendy's Fast-food to it's competitor, therefore reducing its sales and invariably reducing it's profit.

Therefore, Wendy's fast-food should be in tune with price fluctuation of it's competitors especially if it is a price decrease.

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3 years ago

A groundskeeper must buy bags of fertilizer. Each bag treats $10000$ square feet of ground and costs $\$27$. The groundskeeper c

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Answer:

$162

Explanation:

As we know that

1 square feet = 0.1 square yard

which means

10,000 square feet = 0.1 × 10,000

= 1,000 square yards

And, the given cost is $27

So, the cost for 6,000 square yards would be

= (6,000 square yards × $27) ÷ (1,000 square yard)

= ($162,000) ÷ (1,000 square yard)

= $162

We applied the unitary method for above calculation.

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3 years ago