Answer:
The cash flow from operating activities was $7,000.
Explanation:
Ending Cash Balance
= Opening Cash Balance + Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash Flow from Financing Activities
$24,000 = $47,000 + Cash Flow from Operating Activities - $250,000 + $220,000
Cash Flow from Operating Activities = $24,000 - $47,000 + $250,000 - $220,000
= $7,000
Therefore, The cash flow from operating activities was $7,000.
Answer:
Debit to Interest expenditure and bond premium.
Explanation:
Based on the information the Appropriate journal entry to record this would include a CREDIT TO CASH for the amount of the interest checks written and DEBIT(S) to INTEREST EXPENDITURE AND BOND PREMIUM reason been that we were told the ANNUAL INTEREST PAYMENT on the company its outstanding was the amount of $20 million of 6 percent bonds, which were ISSUED AT A PREMIUM.
Debit to Interest expenditure and bond premium $1.2 million
($20 million*6%)
Cr Cash $1.2 million
Answer:
Otter Enterprises will be taxed differently depending on what type of business it is. If it is a partnership, LLP, LLC or S corporation, then it is a pass through business, which means it is not taxed directly, instead its owners are taxed directly. If it is a C corporation, then it has to pay corporate taxes and the owners pay income taxes.
- Partnership, LLP and LLC: net operating profit = $320,000 - $210,000 = $110,000 + long term capital gains $15,000. Ellie and Linda must each pay income taxes for $55,000 and capital gains taxes for $7,500.
- S corporation: The S corporation will pay employer taxes on the $50,000 distributed to Ellie and Linda (owner-employee relationship), and then Ellie and Linda must pay income taxes for the remaining net income and capital gains taxes for the capital gains (similar to a partnership).
- C corporation: must pay corporate taxes on its net profits + capital gains, and then Ellie and Linda must pay income taxes for any dividends received. The retained earnings account (what is left after taxes and dividends) is not taxed until dividends are distributed.
Answer:
c. The management of Ace should consider the effect of slow moving inventory on its liquidity.
Explanation:
Liquidity is an important measure of a company's financial health, its calculation determines how well the company can pay off your short-term debts. Inventory has a great impact on liquidity and it depends on how easily the company can sell it. As ACE is having trouble selling its products, it means that it takes a long time to sell its inventory, which does not help its liquidity since its inventory can not be easily be transformed into cash without losing its value, and that's why this company management must consider moving inventory on its liquidity, in order to increase its current ratio, that means its ability to pay current, or short-term, liabilities (debt and payables) with its current, or short-term, assets (cash, inventory, and receivables).
If this company
