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Vaselesa [24]
3 years ago
6

Classifying items on the statement of cash flows Cash flow items must be categorized into one of four categories. Identify each

item as operating (O), investing (), financing (F), or non-cash (N). a. Cash purchase of merchandise inventory b. Cash payment of c. Cash receipt from the collection of long-term notes receivable d. Cash payment for income taxes e. Purchase of equipment in exchange for notes payable f. Cash receipt from the sale of land g. Cash received from borrowing money h. Cash receipt for interest income i. Cash receipt from the issuance of common stock j. Cash payment of salaries dividends
Business
1 answer:
valentina_108 [34]3 years ago
5 0

Answer:

Explanation:

There are three types of activities in the cash flow statement which are described below:  

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income  and it also records the cash receipts and cash payment transactions

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

The categorization is shown below:

a. Cash purchase of merchandise inventory - operating activity

b. Cash payment of dividend - financing activity

c. Cash receipt from the collection of long-term notes receivable - investing activity

d. Cash payment for income taxes - operating activity

e. Purchase of equipment in exchange for notes payable - non cash activity

f. Cash receipt from the sale of land - investing activity

g. Cash received from borrowing money  - financing activity

h. Cash receipt for interest income - operating activity

i. Cash receipt from the issuance of common stock - financing activity

j. Cash payment of salaries dividends - operating activity

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Consider a perfectly competitive market in which all firms have the same costs. Choose the statement that is incorrect.
Furkat [3]

Answer:

B. The market demand is perfectly elastic at the market price. °

Explanation:

As we know that in the case of perfect competitive market there is a big number of sellers and buyers who sells same kind of product, there is no entry and exit barriers also the firm is a price taker

In addition to this, the market price and output would be measured by the supply and demand force. The profit maximizing output for every firm would considered the market price with the prescribed output and at the time when firm is shutdown so the market price would below the average variable cost

So the option b is incorrect

3 0
2 years ago
Craigmont company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead cos
Ivanshal [37]
Conversion cost is defined as the sum of direct labor costs and manufacturing overhead costs. It is the manufacturing cost needed to convert raw materials to a product. From the information given above, the conversion cost is the summation of direct material costs, direct labor costs and factory overhead costs. 
$3000,000 + 7,000,000 + 5,000,000 = 15,000,000
Therefore, the conversion cost is $15,000,000.
3 0
3 years ago
What are the 4 targeting strategies a company can use to select a target market? Explain each one.
Maslowich
Undifferentiated Marketing, Multi-Segment Targeting, Focus Targeting, and Customized Marketing.

Hope this helps!
5 0
3 years ago
Using the 4 Cs, we consider a variety of costs associated with the purchase of a product. Cost in the Four Cs model is similar t
Dimas [21]

Answer:

marketing

Explanation:

Marketing may be defined as the business or the action of promoting as well as selling products or the services, which includes a market research and the advertising. It is the activity, the organization undertakes to foster promote by buying or by selling a product or a service in the market.

The 4Cs that is used in the concept of marketing is Convenience, Communication, Consumer solution, Cost. They are quite similar to the 4P model of marketing i.e. Place, Promotion, Product, Price. These models are used in marketing to enhance the 'marketing mix'.

4 0
3 years ago
Read 2 more answers
Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisio
anygoal [31]

Answer:

Effect on income= -$49,500

They lost the positive contribution margin increased by the fixed costs. Veronica is wrong.

Explanation:

Giving the following information:

Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,500.

Percy Division

Sales= $100,000

Cost of goods sold= 76,000

Gross profit= 24,000

Operating expenses= 49,500

Net income= (25,500)

In the Percy Division, the cost of goods sold is $59,000 variable and $17,000 fixed, and operating expenses are $29,000 variable and $20,500 fixed.

None of the Percy Division's fixed costs are avoidable.

Effect on income= -contribution margin - fixed costs

Effect on income= -(100,000 - 88,000) - 37,500= -$49,500

They lost the positive contribution margin increased by the fixed costs.

4 0
3 years ago
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