Which statement best illustrates the relationship between three different

The current sections of Birmingham Inc.â€™s balance sheets at December 31, 2019 and 2020, are presented here. Birminghamâ€™s net

jekas [21]

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense 25,000

amortization expense 10,000

gain on disposal <u> (7,000) </u>

Adjusted Income 221,000

Change in Working Capital:

Increase in A/R (27,000)

Decreasein Inv 17,000

Increase in Prepaid (5,000)

Increase Accrued /P 11,000

Decreasein A/P (6,000)

Change In Working Capital (10,000)

From Operating Activities 211,000

Investing

Sale of Equipment 47,000

Financing

Bonds Issued 60,000

Cash Flow 318,000

Beginning Cash 99,000

Cash Flow 318,000

Ending Cash 417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

6 0

3 years ago

There are 2 methods of accounting for uncollectible receivables: Direct Write-Off and Allowance methods. Describe and compare th

Kruka [31]

The direct write off does not report about the bad debt and does not use the allowance where as the allowance method uses the allowance for doubtful accounts because it provides an estimate for the same.

<u>Explanation:</u>

The allowance method speaks to the accumulation and accrual basis of bookkeeping and is the acknowledged technique to record uncollectible records for monetary bookkeeping purposes. The direct write off method is utilized just when we choose a client won't pay.

The allowance method utilizes the stipend for doubtful records to catch amassed assessments of awful obligations. The direct write-off method does not report bad debt estimates; therefore, it does not use the allowance for doubtful accounts when reporting bad debts.

3 0

3 years ago

Read 2 more answers

Consider a single factor APT. Portfolio A has a beta of 2.0 and an expected return of 19%. Portfolio B has a beta of 1.0 and an

Aleksandr-060686 [28]

Answer:

Invest 50% in portfolio A and the rest 50% in risk-free asset to create Portfolio D, we will have the same systematic risk as that of Portfolio B.

The expected return of Portfolio D = 11%

Portfolio D and Portfolio B have the same beta of 1.0. But, portfolio D has a higher return of 11% as compared to the expected return of Portfolio B of 8%.

Buy Portfolio D, and sell Portfolio B.

Explanation:

A risk free asset is referred to an asset that provides a virtually guaranteed return and no possibility of loss.

Risk-free asset has a beta of 0.

Portfolio D Beta = Wa × Portfolio A Beta + Wb × Risk-free asset beta

1.0 = Wa * 2.0 + Wb * 0

Wa = 1.0/2.0

Wa = 0.50

If we invest 50% in portfolio A and the rest 50% in risk-free asset to create Portfolio D, we will have the same systematic risk as that of Portfolio B.

The expected return of Portfolio D = 0.50 × 0.19 + 0.50 ×0.03

The expected return of Portfolio D = 0.11

The expected return of Portfolio D = 11%

Portfolio D and Portfolio B have the same beta of 1.0. But, portfolio D has a higher return of 11% as compared to the expected return of Portfolio B of 8%.

Buy Portfolio D, and sell Portfolio B.

7 0

3 years ago

Communication barriers are the different factors that disrupt messages. There are a variety of different strategies that can be

vladimir1956 [14]

Answer:

Explanation below

Explanation:

Language Barriers - both language and linguistic abilities can serve as barriers to communications between people. When people communicate using the same language, terminologies used in the message can form as barrier in the communication. It is best to use the language that can be rightly understood by the receiver.

Psychological Barriers – The psychological mind of the person receiving the message could serve as a barrier to communication. When people experience certain stress and personal issues, it could preoccupy their minds and that may make them not to be receptive to messages as expected. Stress management could help alleviate the challenges around this psychological barrier issues.

Physiological Barriers simply have to do with the receiver’s physical state. If the person is not hearing well maybe due to background noise, then the entire messages may not be grasped by the receiver. It is best to ensure there are no background noises.

Physical Barriers include the geographical distances between both the sender and the receiver of the message. Modern technologies have been used to reduce the impact of physical barriers.

Attitudinal Barriers are the behaviors or perceptions that hinder people from communicating effectively. Such barriers can come up as a result of personality conflicts between the people or resistance to change. It would be ideal if both parties that are communicating try to overcome their attitudinal barriers before they can communicate. Better enlightenment can be used here effectively to correct issues.

7 0

3 years ago

On May 26, 2015, Jamal purchased machinery for $30,000 to be used in his business. He did not elect to expense the equipment und

Kruka [31]

Answer:

$1340

Explanation:

= 30,000 * 8.93% * 1/2

= 2679 * 1/2

= 1339.5

= $1340

3 0

3 years ago