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levacccp [35]
4 years ago
9

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

Business
1 answer:
Anni [7]4 years ago
4 0

Answer and Explanation:

The preparation of cash flows, using the indirect method is shown below:-

Cash flow from operating activities

Net income $141,680

Adjustment made

Add: Depreciation $14,790

Add: Loss on sale of

investment $10,200

Current operating Assets  and liabilities change

Less: Increase in accounts  receivable -$19,040

Less: Increase in inventories -$8,670

Add: Increase in accounts  payable $11,560

Add: Accrued accounts payable  increased $3,740

Net cash flow from operating activities $154,260

Net cash flow from Investing activities

Investment sale $91,800

Less: Equipment purchased -$80,580

Less: Land purchased -$295,800

Net cash flow from investing activities -$284,580

Cash flow from financing activities

Common stock issued $250,000

Less: Paid Dividend -$96,900

Cash flow from financing activities $153,100

Net increase or decrease in cash $22,780

Add: Beginning cash balance $47,940

Ending cash balance $70,720

Working note

Dividend paid = Dividend declared - Increase in Dividend payable

= $102,000 - $5,100

= $96,900

Loss on sale of investment = Sale of investment of amount realized - Investment cost

= $91,800 - $102,000

= -$10,200

The positive amount represents the cash inflow and the negative amount represents the outflow of cash

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Answer:

B. IT'S SHOWN AS A DEBIT MEMO

Explanation:

A bank creates a debit memo when it charges a company a fee on its bank statement, thereby reducing the balance in the company's checking account. Thus, if a bank account has a balance of $1,000 and the bank charges a service fee of $50 with a debit memo, the account then has a remaining balance of $950. Examples of charges that can cause debit memorandums are bank service charges, bounced (not sufficient funds) check fees, charges for the printing of check stock, and rental fees for the use of remote deposit capture scanners and software

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4 years ago
Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with a
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Answer:

Profit will reduce by $28,000

Explanation:

The impact on profit that would result from dropping Conway is shown below:-

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Sales revenue      $1,024,000     $185,000       -      $1,209,000

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Less

Variable expenses  $892,000      $45,000         -      $937,000

                                 ($1,115,000 × 80%)

Contribution margin$132,000   $140,000 $ -    $272,000

Less:

Direct fixed expenses

Depreciation          $50,000        $15,000        $10,000  $75,000

Salaries                $95,000        $85,000            $ -       $180,000

Segment margin   ($13,000)     $40,000    ($10,000)  $17,000

Existing Profit                                                                    $45,000

Profit will reduce by                                                        $28,000

6 0
3 years ago
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ivolga24 [154]

True cause lowest paid would be the one who does the easiest job thus giving you the answer true

7 0
3 years ago
I have question with it can you help me please??​
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Answer:

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Total cost for the year=$5,800

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3 years ago
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