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Lorico [155]
2 years ago
8

Suppose your company reports $210 of net income and $50 of cash dividends paid, and its comparative balance sheet indicates the

following. Beginning Ending Cash $ 45 $ 255 Accounts Receivable 125 225 Inventory 295 185 Total $ 465 $ 665 Salaries and Wages Payable $ 20 $ 100 Common Stock 150 110 Retained Earnings 295 455 Total $ 465 $ 665 Required: 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:
topjm [15]2 years ago
4 0

Answer:

The Operating Activities Section of the Statement of Cash Flows, using the indirect method:

Net Income                                $210

Changes in working capital:

Accounts Receivable                 -100

Inventory                                      110

Salaries & Wages Payable           80

Net cash flow from operating $300

Explanation:

In preparing the operating activities section of the Statement of Cash Flows, two methods are used.  The direct method and the indirect method.

The indirect method starts with the net income as the base and converts the income into cash flow through the use of adjustments.  The net income is first adjusted with non-cash items (such as depreciation expense) as well as non-operating gains and losses.  The direct method only takes the operating cash transactions into account to produce the cash flow from operations.  However, it is required that the direct method must provide a reconciliation of net income to the net cash provided by operations.

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My starbucks idea, which provides customers a location to post suggestions, is a type of g
8_murik_8 [283]
The answer is open innovation
In business terms, open innovation refers to using input and knowledge from outside the company in order to accelerate the innovation process in the company. By creating my starbucks idea, starbuck will able to collect a lot of data from its customers and create a plan that will win the favor of most of its customers
7 0
3 years ago
Acquired $60,000 cash from the issue of common stock. Received an $8,200 cash advance for services to be provided in the future.
emmainna [20.7K]

Answer:

<u>TRIAL BALANCE:</u>

                   Debit Credit

Cash            79600

AR                       7500

Supplies                  400

slaries expense 3100

op- expense        16100

supplies expense 1600

dividends        2000

Account Payable               3000

saalaries expense                3100

Unearned Revenue               5100

Common Stock             60000

Service revenue              39100

                       110300    110300

Explanation:

We have to record eahc time an accoutn is used and once we got all transactions we determiante the balance

Cash

Debit Credit

60000

8200

28500

        15100

        2000

<u>96700 17100</u>

<em>79600</em>

AR

Debit Credit

36000

<u>        28500</u>

7500

Supplies

Debit Credit

2000

<u>         1600</u>

 400

salaries expense op- expense supplies expense

Debit Credit    Debit Credit Debit Credit

3100        16100          1600

Account Payable

Debit Credit

       2000

       16100

15100

<u>15100  18100    </u>

        3000

Salaries Payable

Debit Credit

         3100

Unearned Revenue

Debit Credit

        8200

<u>3100               </u>

        5100

Common Stock

Debit Credit

       60000

Service revenue

Debit         Credit

      36000

<u>          3100   </u>

        39100

Then we construct the trial balance which all these account balance.

5 0
2 years ago
ABC common stock just paid a dividend of $2.50 per share. The ABC dividend is expected to grow 20% per year for two years, and t
Liula [17]

Answer and Explanation:

Given that the dividend will grow at 20% for two years and then a constant 6% at third year

1st year dividend at 20%= $3

Present value of the dividend for the first year=PV factor at 15%(from table) = $2.61

2nd year dividend at 20% = $3.60

Present value of the dividend for the second year = PV factor at 15%(from table) $2.72

3rd year dividend at 6% growth rate =

$42.40

Present value of the dividend for the third year = PV factor at 15% = $32.06

Current price of the stock =$2.61+$2.72+$32.06

=$37.39

6 0
3 years ago
The Classical Theory is based on the assumption that an economy has ______________ or, if nudged away, quickly returns to that c
Neporo4naja [7]

Answer:

c. full employment

Explanation:

The classical theory refers to a theory in which there is an existence of the full employment. The unemployment would be arise by including the legislation of the trade union and the legislation of the minimum wages in the market system i.e. free based.

Therefore according to the given situation, the option c is the correct and the same is to be considered

5 0
2 years ago
Marilyn County operates on a calendar year basis. It uses a Capital Projects Fund to account for major capital projects and a De
mr Goodwill [35]

Answer:

Marilyn County

1. Journal Entries:

1. January 1, 2013,

Debit Capital Projects Fund $1,000,000

Credit General Obligation Bonds Payable $1,000,000

To record the issuance of bonds, payable in 20 equal semiannual installments of $50,000 over a 10-year period commencing October 1, 2013, with interest of 4 percent per annum paid on the outstanding debt.

2. May 1,

Debit Capital Projects Fund $20,000

Credit General Fund $20,000

To fund the additional project costs.

3. July 1

Debit Construction of Community Center $1,020,000

Credit Capital Projects Fund $1,020,000.

To record the payment to the contractors for completed construction of Community Center with estimated 20 years useful life.

4. September 30, 2013

Debit Debt Service Fund $70,000

Credit General Fund $70,000

To transfer funds for debt service.

5. October 1:

Debit Bonds Payable $50,000

Debit Interest on Bonds Expense $20,000

Credit Debt Service Fund $70,000

To record the payment of the debt service with semi-annual interest.

2. Governmental activities column of the government- wide financial statements:

Capital assets $1,020,000

Reduction of Liabilities $950,000 ($1,000,000 - $50,000)

Payment of debt service and interest $70,000

3. December 31, 2013, government-wide statement of net position

Investment in capital assets, $1,020,000

Related debt                              (950,000)

Invested capital assets, net       $70,000

4. December 31, 2014, government-wide statement of net position

Investment in capital assets, $1,020,000

Related debt                              (850,000)

Invested capital assets, net      $170,000

Explanation:

a) Data and Analysis:

1. January 1, 2013, Capital Projects Fund $1,000,000 General Obligation Bonds Payable $1,000,000

2. May 1, Capital Projects Fund $20,000 General Fund $20,000

3. July 1 Construction Contract $1,020,000 Capital Projects Fund $1,020,000.

4. September 30, 2013 Debt Service Fund $70,000 General Fund $70,000  

5. October 1, Bonds Payable $50,000 Interest on Bonds Expense $20,000 ($1,000,000 * 4% * 6/12) Debt Service Fund $70,000

4 0
3 years ago
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