Answer:
B) $114,000
Explanation:
To calculate the operating cash flows using the top down approach we can use the following equation:
operating cash flow = increase in total sales - increase in total expenses - increase in taxes paid
operating cash flow = $975,000 - $848,000 - ($154,000 - $141,000) = $975,000 - $848,000 - $13,000 = $114,000
I didn't include depreciation since it is normally included to calculate the increase in taxes but taxes were already given.
Answer:
Asset Account is decreased.
Liability Account is also decreased.
No effects on Capital Stock.
No effects on Retained Earnings.
Explanation:
Asset Account is decreased by $5000 because Cash is paid for the purchases made on account last month.
Liability Account is decreased by $5000 because accounts payable for the purchases made In the last month is now paid.
This transaction will have no effects on Capital Stock Account and Retained Earnings Account.
Answer: The price of the basket of goods falls in the U.S. and rises in Taiwan.
Explanation: Exchange rate is the price of a given currency when bought with another another,it is also known as the value of a currency when compared with others such as the United States Dollar. Various factors have been understood to be the cause of the rise and fall of Currency. This will include the value of a country's export and its balance of trade etc
When the price of the basket of goods falls in the United States and rises in Taiwan it will certainly cause the U.S. real exchange rate with TAIWAN to fall.
Answer:
<u>EQUITY AND LIABILITIES</u>
<u>EQUITY</u>
Retained earnings $ 41,563
Preferred stock $ 8,485
Common stock - Issued $ 8,743
Treasury stock $ 2,450
Share Premium $ 52,878
Total Equity $114,119
Explanation:
The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.
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