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4 years ago

Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows:

Business

1 answer:

viva [34]4 years ago

5 0

Answer:

$81,100

Explanation:

The computation of the net cash flow from operating activities are as follows

Cash flow from operating activities

Adjusted net income $74,900

Add or less adjustments made

Less: Increased in account receivable -$5,600 ($32,400 - $26,800)

Add: Increase in account payable $5,200 ($29,800 - $24,600)

Add: Increase in dividend payable $1,000 ($17,000 - $16,000)

Add: Decrease in inventory $5,600 ($45,400 - $51,000)

Net cash flow provided by operating activities $81,100

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Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The stock is

shutvik [7]

Answer:

Option c. is correct

Explanation:

A stock is an investment that denotes an ownership share in a company. Purchasing a company’s stock means purchasing a small piece of that company that denotes a share.

In the given question, if the company goes ahead with the stock issue that would not affect total assets: the interest rate Taggart pays, EBIT, or the tax rate then the tax bill will increase.

4 0

4 years ago

Piper Corp. is operating at 70% of capacity and is currently purchasing a part used in its manufacturing operations for $24 per

Sauron [17]

Answer:

$30,000 increase

Explanation:

Piper Corp is operating at 70% capacity, and so we can produce the unit in-house at no increase to fixed cost we are already incurring. So we assume fixed cost for the extra production is zero

Without fixed cost the unit can be produced at $26, so cost of producing the units needed= 26*15,000= $390,000

To buy the product we need $24 per unit, so the cost of buying the needed units is= 24* 15,000= $360,000

The differential cost of making the part rather than purchasing it = Cost of inhouse production- Cost of Buying= 390,000- 360,000= $30,000

3 0

3 years ago

Below are amounts (in millions) from three companies' annual reports. beginning accounts receivable ending accounts receivable n

marishachu [46]

Answer: Figures are not in millions ('000)

Explanation:

Formula

Receivable turnover ratio(RTR)= Net credit sales/Average account receivable

Where average account receivable((AAR)

AAR=opening receivable+closing receivable/2

Average collection period=365/Receivable turnover ratio

WALCO

Average receivable=1785+2732/2

AAR=4517/2

AAR=$2258.5

Turnover ratio=319427/2258.5

Receivable turnover ratio=141.43 times

ACP=365/141.43

Average collection period=2.58 days

TARMART

Average receivable=6016+6544/2

AAR=12560/2

AAR=$6280

Turnover ratio=64878/6280

Receivable turnover ratio=10.33 times

ACP=365/10.33

Average collection period=35.34 days

COSTGET

Average receivable=599+635/2

AAR=1234/2

AAR=617

Turnover ratio=65963/617

Receivable turnover ratio=106.87 times

ACP=365/106.87

Average collection period=3.42 days

Average collection period is the number of days it takes for credit sales to be paid.

5 0

3 years ago

Ralph was considering hiring George to work in his grocery store as a shelf stocker. In order to ensure that George is a citizen

aliya0001 [1]

Answer:

I-9 Employment Eligibility Verification form

Explanation:

Based on the information provided within the question it can be said that Ralph should ask George to complete the I-9 Employment Eligibility Verification form. This is a form that is used in order to make sure that the individual is legally authorized to work as a paid employee within the United States of America. Which is what Ralph needs to veirfy George's identity and authorization to work.

5 0

3 years ago

On January 1, 2018, Jordan Inc. acquired 30% of Nico Corp. Jordan used the equity method to account for the investment. On Janua

-BARSIC- [3]

Answer:

Use rerospective valuation and then begin to use Fair value valuation of the investment account from 2019 and beyond

Explanation:

First, it should be noted that Jordan will make use of different methods to account for change in its account.

A first method will apply to a retrospective adjustment method to make relevant changes in the investment account

The second step is to now use the fair-value method for his account from 2019 and beyond.

The idea of using a retrospective method is to engage or apply a new accounting pricnciple as though it has always been applied, using the retrospective method will assist Jordan to compare teh year 2018 where it had significant influence over the opeations of Nico to 2019 and future years when it begins to use the fair-value method of investment valuation.

7 0

3 years ago