Answer: Three items will appear being;
2. Sale of delivery truck at book value
5. Sale of a debt security held as an available-for-sale investment
6. Collection of loan receivable.
Explanation:
The Investment Section of the Cash Flow Statement contains activities related to investment such as the buying or selling of fixed assets and the buying or selling of other company stocks or bonds.
Out of the above therefore, there are 3 activities that would fall under this section of the Cash Flow Statement.
They are;
2. Sale of delivery truck at book value.
- This refers to the sale of a Fixed asset and as such it goes to the investment section.
5. Sale of a debt security held as an available-for-sale investment.
- As a debt security of another firm that was considered available for sale, this goes to the Investment Section as well.
6. Collection of loan receivable.
- Finally, collection of loan receivable means that the company loaned money to another company making it an investment related cash inflow as it is a long term Investment income source.
Answer:
Inbound logistics
Explanation:
Inbound logistics is the process of obtaining raw materials, and other goods and services, to the firm, while outbound logistics is the process of delivering the final goods and services from the firm to the customers.
In this case, the retail company is engaging in inbound logistics because it is procuring the raw materials from local farmers. Once these materials reach the firm, it can transform them into the agricultural produce and consumer produce that it sells.
Answer:
Revenue that has been earned by the end of December is $ 140,000
Explanation:
When entity uses the accrual method of accounting, the transaction is recorded as and when it occurs.
The subscription revenue received relates to services to be rendered over 12 months. Therefore the Revenue is recognised as magazines are issued over - time.
<em>From the first issue June to end of December , there exists 7 issues of magazines.</em>
Revenue to be recognised = $240,000 × 7/12
= $ 140,000
Both but fixed goes first so a is correct
Answer:
Amount deposit = $118,411.4 (Approx.)
Explanation:
Given:
Future amount = $150,000
Rate of interest = 6% compounds semiannual
Number of year = 4 year
Find:
Amount deposit
Computation:
Compounds semiannual
So,
Rate of interest = 6% / 2 = 0.03
Time taken = 4 x 2 = 8 times
So,
A = P[1+r]ⁿ
150,000 = p[1+0.03]⁸
150,000 = p[1.03]⁸
150,000 = p[1.26677]
p = 150,000 / 1.26677
p = 118,411.393
Amount deposit = $118,411.4 (Approx.)
