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3 years ago

Companies that show profits on the income statement will always show positive cash flows from operating activities.

Business

1 answer:

vladimir2022 [97]3 years ago

3 0

Answer:

B. False.

Explanation:

Firstly, explaining a cash flow statement will be explained or tells us how much cash from the business is entering and leaving your business. This is been explained better with the aid of a balance sheets and also income statements; these are practically three most important financial statements that helps effectively in accounts of business management in a small business accounting and making sure you have enough cash to keep operating.

Using a template or probably an excel spreadsheet, the income statement and cash flow statements are been well understood and at this it is totally false to say that companies that show profits on the income statement will always show positive cash flows from operating activities.

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Job-Order Costing and Decision Making [LO2-1, LO2-2, LO2-3]

Anastaziya [24]

Answer:

a. $21 per machine hours

b. $4,855

Explanation:

a. The computation of the plantwide predetermined overhead rate is shown below:

Plantwide predetermined overhead rate is

= Variable overhead cost rate per machine hour + Fixed overhead cost rate per machine hour

= $2 + (fixed manufacturing overhead cost ÷ Estimated machine hours)

= $2 + ($4,275,000 ÷ 225,000 machine hours)

= $2 + $19

= $21 per machine hour

b. Now the total manufacturing cost assigned is

Particulars Amount

Direct material $1,702

Direct labor $1,221

Variable manufacturing overhead $168

(84 × $2)

Total variable cost $3,091

Add:

Fixed manufacturing overhead

(84 × $21) $1,764

Total manufacturing cost assigned

to Job P90 $4,855

7 0

2 years ago

As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in use

alexgriva [62]

Answer:

Depreciation

Explanation:

Depreciation is the systematic allocation of estimated cost to an asset. Methods include straight line, sum of the year digits, double declining etc. The entries for recognizing this cost are;

Debit depreciation expense

Credit Accumulated depreciation

Hence to account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called depreciation.

6 0

2 years ago

A common theme in the Asian culture is the emphasis on harmony and collectivism, as a result, the ________ form of decision maki

scoray [572]

Answer:

committee

Explanation:

The process in which a whole collection is involved in making the best and most rational decision is called committee decision making.

These committees should decide jointly about the best strategic arrangement, and the whole process should be done in agreement, unity, and harmony. Members should have the spirit of collectivism, should respect other people's decision and all share their input regarding the decision.

8 0

3 years ago

Winston Clinic is evaluating a project that costs $52, 125 and has expected net cash inflows of $12,000 per year for eight years

kvv77 [185]

Answer:

Payback period (years): 4.23 years

NPV: $6,685

IRR: 16%

MIRR: 14%

The project is financially acceptable because IRR and MIRR is greater than cost of capital

Explanation:

Payback period is calculating the number of year when cash inflow can cover cash outflow (regardless the present value of cash inflow).

As we can easily estimate, cash inflow in 5 year can cover the investment.

Then payback period = 4 years + 12000/52,125 = 4.23 years

We can use excel to calculate NPV, IRR, MIRR in the formula as below

Net present value of project: NPV=(discounting rate, cash outflow, cash inflow) = (12%, -52125,12000,12000......,12000) = $6,685

Internal rate of return: IRR= (cash outflow, cash inflow) = ( -52125,12000,12000,......,12000) = 16%

Modified internal rate of return: MIRR = (cash outflow, cash inflow, IRR, cost of capital) = (-52125,12000,12000......,12000,16%,12%) = 14%

Please see attachment for more details.

Download xlsx

5 0

2 years ago

2. Three years ago, Shawheen deposited $5,000 in a savings account. Today, the account is worth

AnnyKZ [126]

The amount of money Shawheen deposited in his savings account increased in value because of the interest rate his account earns.

The initial deposit might have a higher purchasing power because of inflation.

When money is deposited in a savings account, the amount of money earns interest.

The value of the interest rate can be determined using this formula: interest earned / (time x amount deposited)

Interest earned = $$5,306.04 - $5,000 = $306.04

Interest rate = $306.04 / (3 x $5000) = 2.04%

Inflation is the persistent rise in the general price levels. Inflation reduces the purchasing power of money.

To learn more about inflation, please check: brainly.com/question/18072639

4 0

2 years ago