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ra1l [238]
3 years ago
10

SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,554,000 Cost of goods sold 761,460 Gross profit 792,540 Oper

ating expenses Salaries expense $ 212,898 Depreciation expense 37,296 Rent expense 41,958 Amortization expenses—Patents 4,662 Utilities expense 17,094 313,908 478,632 Gain on sale of equipment 6,216 Net income $ 484,848 Accounts receivable $ 36,750 increase Accounts payable $ 13,850 decrease Inventory 24,550 increase Salaries payable 2,900 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Business
1 answer:
Lemur [1.5K]3 years ago
7 0

Answer and Explanation:

The preparation of operating activities is given below:-

Statement of Cash Flows

Cash flows from operating activities

Net income                                                 $484,848

Adjustments to reconcile net income to net cash

Income statement items that is not affecting cash  

Depreciation expense                               $37,296

Amortization expense - Patents                $4,662

Less: Gain on sale of equipment                ($6,216)

Changes in current operating assets and liabilities

Less: Increase in accounts receivable       ($36,750)

Less: Increase in inventory                          ($24,550)

Less: Decrease in accounts payable          ($13,850)

Less: Decrease in salaries payable             ($2,900)

Net cash provided by operating activities $442,540

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Ira Lisetskai [31]
A withholding you might see on your pay stub can include a retirement savings or a health insurance payment. 
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3 years ago
A mining company owns two mines, each of which produces three grades (high, medium, and low) of ore. The company has a contract
sashaice [31]

Answer:

They should operate Mine 1 for 1 hour and Mine 2 for 3 hours to meet the contractual obligations and minimize cost.

Explanation:

The formulation of the linear programming is:

Objective function:

C=200M_1+160M_2

Restrictions:

- High-grade ore: 6M_1+2M_2\geq12

- Medium-grade ore: 2M_1+2M_2\geq8

- Low-grade ore: 4M_1+12M_2\geq24

- No negative hours: M_1,M_2\geq0

We start graphing the restrictions in a M1-M2 plane.

In the figure attached, we have the feasible region, where all the restrictions are validated, and the four points of intersection of 2 restrictions.

In one of this four points lies the minimum cost.

Graphically, we can graph the cost function over this feasible region, with different cost levels. When the line cost intersects one of the four points with the lowest level of cost, this is the optimum combination.

(NOTE: it is best to start with a low guessing of the cost and going up until it reaches one point in the feasible region).

The solution is for the point (M1=1, M2=3), with a cost of C=$680.

The cost function graph is attached.

7 0
3 years ago
Buzz Lightyear has been offered an investment in which he expects to receive payments of $4,000 at the end of each of the next 1
LenaWriter [7]

Answer:

IRR= 21.86%

Explanation:

Giving the following information:

Initial investment (PV)= $10,000

Cash flows (PMT)= $4,000 per year

Number or years (n)= 4

<u>It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.</u>

Function: CMPD

n= 4

I%= SOLVE = 21.86%

PV= 10,000

PMT= -4,000

IRR= 21.86%

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3 years ago
What are 2 types of goods/services that lends themselves well to non-price competition?
Luden [163]
<h2>Answer:Non-price competition typically involves promotional expenditures (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs.</h2>

Explanation:

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3 years ago
E3-27 (book/static) The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants to
vazorg [7]

Answer:

Explanation:

1.

Contribution Margin=Sales - variable cost =$8.75-$3.50=$5.25

Contribution Margin Ratio = Contribution Margin / Sales = $5.25/ $8.75=60%

Pre-Tax Net Income=Net Income/(1-tax rate)

$117,600/(1-0.36)=$183,750

Target Revenue =Fixed cost +Target Pre-Tax net Income/Contribution margin Ratio =($430,500+$183,750)/0.6=$1,023,750

2. Number of customers needed to Break Even

Fixed costs/Contribution margin per unit=$430,500/$5.25=82,000 Customers

Number of customers to earn 117,600 = (Fixed costs + 117,600)/5.25 = (430,500+117,600)/5.25 = 104,400

3.  

Sales (170,000*8.75)   1,487,500

Less: Cost of goods sold   (170,000*3.50)  -595,000

Contribution margin  892,500

Less: fixed costs  -430,500

Net Income before tax  462,000

Less: tax rate (462,000*36%)  - 166,320

Net Income after tax   295,680

3 0
2 years ago
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