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sdas [7]
3 years ago
9

Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respec

tively. In addition, during the year equipment was purchased for $50,000 cash, accounts payable increased by $50,000, and net income was $180,000. Based upon this activity, the cash flows from operating activities to be reported on the statement of cash flows is Select one: a. $145,000. b. $165,000. c. $ 95,000. d. $195,000. e. $215,000.
Business
2 answers:
Allushta [10]3 years ago
7 0

Answer: The answer is e. $215,000.

Explanation: Based on the information provided in the question, see the cash flows statement below:

XYZ Cash Flows Statement

Net income                                                         $180,000

Increase in account receivable                           (15,000)

Increase in accounts payable                              50,000

Cash flows from operating activities             $215,000

  • Note that the purchase of equipment of $50,000 cash would not be considered under cash flows from operating activities but would rather be considered under cash flows from investing activities.
  • Increase in accounts receivable means outflow of cash while increase in accounts payable means non-payment of debt, that is, inflow of cash.
Luden [163]3 years ago
6 0

Answer:

e. $215,000.

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

Increase in assets other than cash is an outflow, while the increase in liability is an inflow of cash.

The cash flows from operating activities to be reported on the statement of cash flows is

= -$15,000 + $50,000 +$180,000

= $215,000

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EB10.
Mrrafil [7]

Answer:

                                                                        Debit                   Credit

Work in process inventory                            $15,000

Manufacturing overhead clearing account                              $15,000                                    

Explanation:

First determine the amount of applied overhead which can be calculated as follows

Applied overhead=Rate per machine hour*number of hours

Applied overhead=$5*3,000=$15,000

The journal entry for the applied overhead shall be made as follow

                                                                        Debit                   Credit

Work in process inventory                            $15,000

Manufacturing overheads clearing account                              $15,000                                    

8 0
3 years ago
A firm expects to sell 25,500 units of its product at $16 per unit. pretax income is predicted to be $60,500. if the variable co
aksik [14]

A firm expects to sell 25,500 units of its product at $16 per unit. pretax income is predicted to be $60,500. If variable costs are $8 per unit, total fixed costs must be $143,500.

Fixed costs are costs that stay constant no matter changes in production volume, implying that irrespective of whether output rises or decreases, total fixed costs remain constant within the relevant range.

Rent, labor, depreciation, insurance, and other fixed costs per unit fluctuate over the relevant range, on the contrary.

Given,

Selling price = $16

Variable cost per unit = $8

Units sold = 25,500

Pretax income = $60,500

Contribution Margin = (Selling Price Per Unit - Variable Cost Per Unit) * Units Sold

Substituting the provided information into the above calculation yields,

Contribution margin = ($16 - $8) * 25,500 units                                

= $204,000

Formula:

Pretax Income = Contribution Margin - Fixed Costs

This symbolizes,

Fixed Costs = Contribution Margin - Pretax Income

Substituting the provided information into the above calculation yields,

Fixed Costs = $204,000 - $60,500                

= $143,500

Hence, the answer is $143,500.

Learn more about fixed cost:

brainly.com/question/14366141

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6 0
2 years ago
Why net profit will be higher if increases average prices to customers?​
vampirchik [111]

Answer:

Higher prices with same sales quantity will mean greater profit.

Explanation:

Let's hold some variables constant. If a business sells books, and they take the prices up, if they sell the same quantity (at higher prices) this would increase revenues. Higher revenues, less the same cost structure (variable and fixed costs) will lead to a greater profit generation. Of course in the real world, price elasticity of demand comes in play when prices are changed. If prices go up, typically sales quantity will decrease and there may be a net effect in revenue and hence profit. In the simple case where prices go up and sales quantity is unaffected, net profit will rise.

6 0
3 years ago
Which of the following would a joiner typically not use?<br><br> saw<br> glue<br> wood<br> screws
n200080 [17]
Glue is the answer I believe
6 0
3 years ago
Read 2 more answers
suppose an economy is hit with a positive oil price shock in one period that raises the level of oil prices permanently. if adap
Tasya [4]

The economy is hit with a positive oil price shock in one period that raises the level of oil prices permanently. if adaptive expectations hold, this wil shift the AS curve up initially and then shift the AS curve back to original position in the following period.

<h3>What is the AS curve?</h3>

The aggregate supply curve describes the amount of real GDP that  the economy supplies at different price levels. The reasoning used to construct the aggregate supply curve is different from the reasoning used to construct the supply curves of individual goods and services. The supply curve for a single good is constructed under the assumption that the prices of production inputs remain unchanged. If the price of good X rises, the unit cost for sellers to supply good X does not change,  so sellers are willing to supply more of good X - so the supply curve for good X shifts upward. However, the aggregate supply curve is determined based on the price level. An increase in the price level increases the price  producers receive for their output and thus increases production.

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4 0
1 year ago
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