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2 years ago

The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation

Business

1 answer:

dalvyx [7]2 years ago

5 0

Answer: B. reduces reported net income of the period but does not involve an outflow of cash for that period.

Explanation:

Depreciation is the wear and tear of an asset due to the use of the asset. When an asset is depreciated, such an asset is eventually sold at a scrap value.

The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation reduces reported net income of the period but does not involve an outflow of cash for that period.

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There is a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. T

dsp73

Answer:

$50,000 + $25x

Explanation:

Given that,

Fixed cost to start a production process = $50,000

Variable cost per unit = $25

Revenue per unit is projected to be $45

Therefore,

Let the number of units produced be x,

The total cost function is as follows:

Total cost = Fixed cost + Variable cost

= $50,000 + (Variable cost per unit × Number of units)

= $50,000 + $25x

4 0

2 years ago

Head-First Company plans to sell 5,100 bicycle helmets at $72 each in the coming year. Variable cost is 62% of the sales price;

bonufazy [111]

Answer:

the sales revenue that Head-First must make to earn operating income of $73,120 is $324,000

Explanation:

Hi, first we need to find the units to reach an operating income = $73,120

Price=72

Var Cost= 72*0.62=44.64

Fixed cost= 50,000

With that in mind, let´s formulate the equation

$OperIncome=X(72-44.64)-50,000$

Where:

X= units to sell

everything should look like this

$73,120=X(72-44.64)-50,000$

$\frac{123,120}{(72-44.64)} =X$

$X=4,500$

So, Head First has to sell 4,500 units in order to make that $73,120 operating income mark. Therefore, the sales revenue will be 4,500*$72=$324,000

To check the aswer, please relate to the MS excel spreadsheet attached to this answer.

Best of luck.

Download xlsx

4 0

2 years ago

Bonita and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 11400 units of ending work

ratelena [41]

Answer:

The equivalent units for conversion cost are 28080.

Explanation:

Firstly, we need to find our how much units are being sold

Units Sold= physical units - ending units

Units sold= 31500 - 11400 = 20100

Then we need to add units sold with percentage completion of ending units in order to find out equivalent units for conversion cost

Formula:

Equivalent units for conv. cost= units sold + (%completion of ending units)

Equivalent units for conv. cost= 20100 + ( 70% ×11400)

Equivalent units for conv. cost= 20100 + 7980

Equivalent units for conv. cost= 28080

8 0

2 years ago

The officer responsible for managing the firm's cash flows is the

Wewaii [24]

The officer responsible for managing the firm's cash flows is the <span>treasurer</span>.

8 0

2 years ago

everyday, pepsi products are delivered to grocery stores, gas stations, vending machines, and restaurants in the united states a

Elis [28]

Every day, Pepsi products are delivered to grocery stores, gas stations, vending machines, and restaurants in the united states and locations around the world. to accomplish this task, pepsi must have an expedient to get its products from its source to the consumer in the supply chain.

<h3>What is Pepsi?</h3>

PepsiCo produces the carbonated soft drink known as Pepsi.
Caleb Bradham first invented and introduced Brad's Drink in 1893. In 1898, it was renamed Pepsi-Cola, and in 1961, the name was abbreviated to Pepsi.
Caleb Bradham created Pepsi at his drugstore in New Bern, North Carolina, where it was first sold in 1893 under the name "Brad's Drink".

<h3>What stands for Pepsi?</h3>

In 1893, Caleb Bradham created the first Pepsi beverage at his drugstore in New Bern, North Carolina, and sold it under the name "Brad's Drink."
In 1898, the drink's name was changed to Pepsi Cola in honor of the recipe's inclusion of kola nuts and the digestive enzyme pepsin.

Learn more about Pepsi here:

brainly.com/question/13373374

#SPJ4

7 0

1 year ago