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kap26 [50]
3 years ago
9

Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transa

ctions would have upon cash and net income. The first transaction has been completed as an example.
Cash Net Income
A. Purchased $100 of supplies for cash. –$100 $0
B. Recorded an adjusting entry to record
use of $30 of the above supplies.
C. Made sales of $1,250, all on account. 1297 1164
D. Received $850 from customers in payment
of their accounts. 865 299
E. Purchased equipment for cash, $2,600. 2528 2229
F. Recorded depreciation of building for period
used, $650. 610 2839
Business
1 answer:
Jlenok [28]3 years ago
3 0

Answer:

                                                                  Item  cash      Net income  

a  Purchase of Supplies of cash                 -$100                   -

b  Adjusting entry for use of supplies            -                     -$30

c  Made sales on account                               -                   $1,250

                                             Or

   Made sales on account                               -                   $1,297

d Received cash from customer on acct     $850                  -

                                           Or

   Received cash from customer on acct     $865                  -

e  Purchased equipment for cash               -$2,600              -

                                            Or

   Purchased equipment for cash               -$2,528                -

f   Depreciation of building to be recorded      -                  -$650

                                         Or

   Depreciation of building to be recorded       -                 -$610

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A situation in which some resources are NOT fully utilized is represented in a
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The production would be a my a point inside the curve. The curve shows the possibility of producing with all possible materials so inside the curve is representative of one or more of the resources not being used to its full capacity.
6 0
3 years ago
g An investment bank agrees to underwrite an issue of 5 million shares of stock for Longard Corp. (1). If the investment bank un
Genrish500 [490]

Answer:

Longard Corp.

The money that Longard Corp. receives is:

= $75 million.

Explanation:

a) Data and Calculations:

Number of shares issued = 5 million

Investment bank underwriter pays per share to Longard Corp = $15

Stock price to the public = $20 per share

Total amount received from the underwriter = $75 million ($15 * 5 million)

b) The calculations show that the investment bank will eventually receive $100 million ($20 * 5 million) from the public offer.  It then charges $5 per share (representing a total underwriting fee of $25 million).  This is why it remits only $75 million to Longard Corp.

6 0
3 years ago
Look at the following picture and think about the organizational structure. Your task is to advise someone on how that organizat
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Answer:

top down management

Explanation:

This organizational structure seen in the picture is a representation of top down management. In this structure, the individual at the top of the hierarchy has the most power and full command. Instructions are passed down the chain of command. For example, the CEO is in charge of the company and gives orders to the Managers (Production and Marketing). These managers follow that order and decide what orders to give the individual's under their supervision in the chain of command. These individuals are represented by the connecting lines in the diagram to the Managers. Once these individuals (Foremen and Sales Officer's) receive their orders, they create and relay their own orders down to the Workers and Salespeople.

4 0
3 years ago
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisio
abruzzese [7]

Answer:

Please check the info below

Explanation:

1. For Osaka

Margin =  Net Operating Income / Sales *100

= $ 792000 / $9900000 *100

= 8.00%

Turnover = Sales / Average Operating Assets * 100

= $ 9900000 / $ 2475000 * 100

= 4.00%

ROI =  Margin * Turnover

= 8% *4 %

= 32.00%

Hence the correct answer is 32.00%

For Yokohama :

Margin =  Net Operating Income / Sales *100

= $ 2900000 / $ 29000000*100

= 10.00%

Turnover = Sales / Average Operating Assets * 100

= $ 29000000 / $ 14500000* 100

= 2.00%

ROI =  Margin * Turnover

= 10% *2 %

= 20.00%

Hence the correct answer is 20.00%

2. The correct answer is  

Osaka = $ 371,250

Yokohama = $ 435,000

3. The correct answer is No

This is because since Osaka has a higher ROI, Yokohama’s greater amount of residual income is not an indication that it is better managed

4 0
3 years ago
Risoner Company plans to purchase a machine with the following conditions: Purchase price = $300,000. The down payment = 10% of
ser-zykov [4K]

Answer:

$62,160

Explanation:

Given:

Purchase price = $300,000

Down payment = 10% of purchase price = 0.1 × $300,000 = $30,000

Thus,

the cumulative amount to be financed = $300,000 - $30,000 = $270,000

The present value of an annuity of $1 per year for 8 years at 16% = $4.3436

Now,

Annual payment

= ( Cumulative Amount financed ) / ( Cumulative PV factor at 16% for 8 years)

= $270,000 / 4.3436

= $62,160.42

≈ $62,160

8 0
4 years ago
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