Answer:
Net Income 193,000
Non-monetary terms:
Depreciation expense 25,000
amortization expense 10,000
gain on disposal <u> (7,000) </u>
Adjusted Income 221,000
Change in Working Capital:
Increase in A/R (27,000)
Decreasein Inv 17,000
Increase in Prepaid (5,000)
Increase Accrued /P 11,000
Decreasein A/P (6,000)
Change In Working Capital (10,000)
From Operating Activities 211,000
Investing
Sale of Equipment 47,000
Financing
Bonds Issued 60,000
Cash Flow 318,000
Beginning Cash 99,000
Cash Flow 318,000
Ending Cash 417,000
Explanation:
We first remove the non.monetary concetps from the net income.
Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account
Increase in asset and decrease in liabilities represent cash outflow
while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)
E. Weather or not the buyer experiences
Answer:
1. Response time or Time Response
2. Product variety or variety of the products
3. Availability
4. The Customer experience
5.The Order visibility
6. Returnability
Explanation:
Below is the Explanation of the measures of customer service that are influenced by the structure of the distribution network.
We have 6 measures of customer service that are influenced by the structure of the distribution network and they are:
1.Response time can be defined as the time between when a customer places an order and when the customer receives the delivery.
2. Product variety can be seen as the number of different products that a customer wish and desires from the distribution network.
3. Availability can be defined as the probability or likelihood of a company or an organisation to have a product in stock when a customer order arrives or when a customer places an order.
4.Customer experience can be seen as the the ease that occur when a customer place and receive their order.
5. Order visibility can be defined as the ability of the customer to track their own order from the time of placement to delivery.
6.Returnability can be defined as the ease with which a customer return merchandise or product that they are unsatisfied with and the strength or the ability of the network to handle such returns.
Answer:
$35,143
Explanation:
Step 1 : Determine the value of Ending Inventory
Ending Inventory = $205,000 x 60 %
= $123,000
Step 2 : Determine the amount of unrealized profit in inventory
The Subsidiary (Carl Corporation) sold inventory to Parent (James Corporation).
James Corporation is the Parent of a Group since its owns more than 50% of voting rights of Carl Corporation
We use the gross profit percentage of the seller to determine the unrealized profit in inventory which is 40%.
Unrealized profit in inventory = 40/140 x $123,000
= $35,143
Conclusion :
The amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is $35,143.
Answer:
Net cash flow from operating activity $230,000
Explanation:
The computation of the cash flow from operating activities is shown below;
Cash flow from operating activities
Net Income $200,000
Adjustments made
Add: Depreciation expense $10,000
Add: Loss on sale of equipment $6,000
Add: Increase in Account payable $5000
Less: Increase in Account receivable ($7,000)
Add: Decrease in Merchandise Inventory $10,000
Add: Increase in salaries payable $6,000
Net cash flow from operating activity $230,000
