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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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sesenic [268]

Only in special circumstances or on a temporary basis may survival pricing be used.

<h3>How does pricing policy impact an organization's ability to survive?</h3>

Many operations of the firm's activities are directly correlated with a product's price. Demand will be impacted by a price decision, which in turn will have an impact on the firm's income. Similar to this, a profitable company tends to draw in more new funding.

<h3>How price impacts revenue?</h3>

Your pricing approach will have an impact on the profit margin you make on each unit sold; assuming you don't lose sales, charging more will result in a higher profit margin. In contrast, higher pricing that result in lower sales volumes might reduce or even erase your profits because your overhead costs per unit rise as you sell fewer units.

<h3>What is ROI and how is it impacted by pricing?</h3>

ROI is to quantify the relationship between an investment's return and cost. ROI is calculated by dividing the benefit (or return) of an investment by its cost. A percentage or ratio is used to represent the outcome.

<h3>How market share is impacted by pricing?</h3>

Customers' interest and loyalty can be attracted by offering lower and more alluring prices. The vital sales that increase market share could increase as a result. In addition to providing promotions, coupons, freebies, and other benefits to customers, a business can consider discounts on the actual cost of the goods.

<h3>How do prices impact cash flow?</h3>

One of the key aspects of a company's performance that directly affects cash flow is pricing. If you overcharge for your services, your cash flow will suffer along with your profit margin. If you price things too expensive, you run the danger of pricing potential clients out who either can't or won't pay.

<h3>How do prices impact the status quo?</h3>

The more that higher prices denote higher quality, the less sensitive consumers become to price. Competition pricing, also referred to as status quo pricing, is either keeping current prices (status quo) or basing prices on those of rival businesses.

<h3>How does product quality relate to price?</h3>

Small pricing adjustments translate into huge quality changes when prices are low. Small price changes correspond to smaller quality changes when prices are higher. But in every situation, more expensive goods are of superior quality.

Learn more about survival pricing: brainly.com/question/18498033

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3 0
10 months ago
Felton Co. sells major household appliance service contracts for cash. The service contracts are for a 1-year, 2-year, or 3-year
tia_tia [17]

Answer:

Unearned Service Contracts Revenue = $330,000

Explanation:

Unearned Service Contracts Revenue refers to the expected revenue from a contracts been carried and has yet been paid.

Unearned Service Contracts Revenue for 2010 = $100,000, for 2011 = $160,000 and for 2012 = $70,000

Unearned Service Contracts Revenue = $100,000 + $160,000 + $70,000

Unearned Service Contracts Revenue = $330,000

7 0
3 years ago
Asking that all sources of income be revealed on a credit application is prohibited by the ecoa.
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That is true. Good luck on your future endeavors. 
7 0
3 years ago
Three attraction places found in SA ​
tatuchka [14]

Answer:

The Garden Route

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5 0
2 years ago
Sufficient Dwelling Coverage? Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for
Shtirlitz [24]

Answer:

a. $17,978

b. $300,000

Explanation:

Conditions

  • The  cotton country of lancaster, california has owned his home for ten years
  • purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy
  • the replacement cost of the home is now $300,000

a.    hence,

the proportion of the house insured = \frac{InsuranceAmount}{PriceOfThe Home} \times 100%

                                                             = \frac{160000}{178000}\times 100

                                                             =   89.89%

Percentage amount covered by the policy

= proportion of the house insured = 89.89%

Amount covered by the policy in dollars

= $20,000 × 89.89%

= $17,978

b

Amount of insurance on the home that cotton should now carry to be fully reimbursed for a fire loss  = current value of the home

= $ 300,000

5 0
3 years ago
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