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Arturiano [62]
3 years ago
5

Harris Supply has sales of Sales of $230, Cost of Goods Sold of $78, Depreciation of $40 and Interest Expense of $12. If their t

ax rate is 35%, what is the net income and operating cash flow?
Business
1 answer:
kupik [55]3 years ago
8 0

Answer:

cash provided by operating activities 105

Explanation:

We will use the indirect method.

First, we calculate the net income.

sales                    230

COGS                   (78)

depreciation        (40)

interest expense  (12)

EBT                       100

tax rate 35%

tax expense          (35)

net income             65

Now, we adjust the income by removing the non-monetary term

cash flow from operating activities:

net income                     65

adjustment to net income

non-monetary term

depreciation expense    40 (A)

adjusted net income           105

cash provided by operating activities 105

<u>Notes:</u>

(A) The depreciation expense is an acconting metric, it is used in accounting it does not represent a cash outflow, so it is removed from their effect on net income

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Answer:

At the end of one accounting period result in cash receipts in a future period.

Explanation:

Accrued revenues is money owed by customers for goods bought or services purchased.

Accrued revenue is recorded as an asset on the balance sheet as receivables.

For example, if a customer buys a dress and is yet to pay for the dress. the amount the customer is supposed to pay is recorded as an accrued revenue at the end of the accounting period

Unearned revenue is money received by a company for services that are yet to be rendered.

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b. it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.

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This is generally what the federal reserve does, and they try to stop both deflation and inflation

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A business must decide whether to open a new office in China. If it opens the
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How many major OEMs manufacture Class 8 trucks<br> for the North American market?
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You are the newly appointed sales manager of the Rock Computer Tablets Company and have been charged with the task of increasing
OverLord2011 [107]

Answer:

The correct answer is:

increase prices (B)      

Explanation:

Price elasticity of demand (PED) is the measure of how the quantity of goods demanded change, as the selling of the good change. Mathematically, it is represented as the percentage change in the quantity of good demanded divided by the percentage change in the price of the good.

Price elasticity of demand can be; greater than one, less than one, equal to one, zero, or infinite.

If price elasticity of demand is less than one, it is said to be elastic, meaning that the demand for a product is sensitive to the change in price, and an increase in price will cause a reduction in revenue by the seller, while a reduction in price results to an increase in the quantity demanded, hence increasing revenue. For example, an increase in the price of chicken, may cause consumers to go for turkey instead, leading to a reduction in the demand for chicken.

A price elasticity of demand of less than one is termed inelastic, and an increase in the price of the product does not cause a significant drop in the quantity of the goods demanded, and this is the case seen in our example, so increasing the price of the good will increase the revenue.

When PED is equal to one, it is said to be unit elastic, and it means that the quantity demanded varies proportionately with change in price. For example if the price of a product increases by 50%, and 50% of its regular buyers switch to another brand.

A price elasticity of demand of zero is said to be perfectly inelastic, and it means that the demand for a good does not change at all, irrespective of the change in price.

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