Answer:
When prepaid insurance (or any other prepaid expense) is adjusted at year end in order to record accrued expenses, financial statements are affected in the following way:
- income statement: costs increase, decreasing profits
- balance sheet: assets and equity decrease
- cash flow statement: cash from operating activities increases
- owners' equity: decreases
Answer:
B. $29,000
Explanation:
The cashflow from operating activities is calculated as below:
Cashflow from operating activities = Net income + Depreciation - Working capital investment
= Net income + Depreciation - (Change in inventories + Change in account receivables - Change in account payables)
Putting all the number together, we have:
123,000 = Net income + 38,000 - [(-27,000) + 31,000 - 48,000 - 12,000),
Solve the equation we get Net income = 29,000.
The Northern Hemisphere will be in summer with it is tilted towards the sun, and the Southern Hemisphere will be in winter because it is tilted away.
This is easy to remember because when one hemisphere is closer to the sun, it will be warmer.
Answer:
Inelastic
Explanation:
In the given question,the cost to produce the toothpaste has increased, which led to the increase in the price of the toothpaste significantly. But there is no change in the demand of the toothpaste.
Hence, this product is inelastic.
In the inelastic demand, the demand of the product does not change with any variation in the price of the product.
