Answer:
B. $29,000
Explanation:
The cashflow from operating activities is calculated as below:
Cashflow from operating activities = Net income + Depreciation - Working capital investment
= Net income + Depreciation - (Change in inventories + Change in account receivables - Change in account payables)
Putting all the number together, we have:
123,000 = Net income + 38,000 - [(-27,000) + 31,000 - 48,000 - 12,000),
Solve the equation we get Net income = 29,000.
I believe the answer is: When setting up the business
When setting up the businesses, each partners would has to sign the documents signifying the percentage of ownership that they have in the business and how the profit is split every year of operation. This document is legally binding, meaning that the partners would not be able to get out from their rights and obligation without facing legal consequences.
Answer:
The right choice is Option c (110.0%).
Explanation:
⇒
On estimating the values, we get
⇒ =
⇒ =
Note: percent = %
Answer:
See below
Explanation:
Chesner Co.
Bank reconciliation statement
a.
Cash balance according to bank statement
$20,300
Add:
Deposit in transit on July 31
$7,200
Deduct:
Outstanding checks
($3,585)
Balance
$3,615
Adjusted balance
$23,915
Cash balance according to company's record
$11,100
Add:
Error in recording check no
1056 as $950 instead of $590
$360
Note for $12,000 collected by bank including interest
$12,480
Deduct:
Bank service charge
($25)
Balance
$12,815
Adjusted balance
$23,915
b. The amount that should be reported as cash if a balance sheet were prepared for Chesner Co. on July 31, 2016 is $23,915
Given:
Marginal propensity to consume (MPC) = 0.8
Equilibrium real output = $500 billion
Full-employment output = $540 billion
Find:
Change in government spending ΔG = ?
Computation:
Change in output ΔY = Full-employment output - Equilibrium real output
Change in output ΔY = $540 billion - $500 billion
Change in output ΔY = $40 billion
Change in output ΔY = [1 / (1 - MPC)] × ΔG
$40 billion = [1 / (1 - 0.8)] × ΔG
$40 billion = [1 / (0.2)] × ΔG
$40 billion = [5] × ΔG
ΔG = $40 billion / 5
ΔG = $8 billion
Change in government spending ΔG = $8 billion.