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JulijaS [17]
3 years ago
12

Net income reported on the income statement for the current year was $350,000. Depreciation recorded on plant assets was $26,000

. Accounts receivable and inventories increased by $3,000 and $5,000 respectively. Prepaid expenses and accounts payable decreased by $2,500 and $13,000 respectively. Using the indirect method, how much would be reported as net cash flow from operating activities on the statement of cash flows
Business
1 answer:
Sonbull [250]3 years ago
6 0

Answer:

$357,500

Explanation:

Cash flow from operating activities on the statement of cash flows:

= Net income + Depreciation Expense - Increase in accounts receivable - Increase in inventory + Decrease in prepaid expense - Decrease in accounts payable

= $350,000 + $26,000 - $3,000 - $5,000 + $2,500 - $13,000

= $357,500

Therefore, the net cash flow from operating activities is $357,500.

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2. An A firm has sales of $10 million, variable costs of $4 million, fixed expenses of $1.5 million, interest costs of $2 millio
tankabanditka [31]

Answer:

A) DOL = 1.33 times; DFL = 1.80 times; and DCL = 2.4 times

B) Next years expected Earnings before interest and tax = $5.5 million; and Net years expected net income = $2.45 million

C) Next years expected Earnings before interest and tax = $2.5 million; and Net years expected net income = $0.35 million

Explanation:

Note: This platform did allow the explanation to be saved here as it was claiming it contains swearwords. Please, see the attached pdf file for the full answer and explanation.

Download pdf
6 0
2 years ago
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from t
son4ous [18]

Answer:

Explanation:

1).

Fixed overhead rate = Budgeted fixed overhead / Budgeted direct labor hours = $585,280 / 496000 = $1.18 per hour

Standard hour per unit = 496000 / 124000 = 4 hours per unit

Standard hours for actual production = 119300 * 4 = 477200 hours

Budgeted fixed overhead = $585,280

Actual fixed overhead = $555,750

Fixed overhead applied = SH * Standard rate of fixed overhead = 477200 * $1.18 = $563,096

Fixed overhead spending variance = Budgeted fixed overhead - Actual fixed overhead

= $585,280 - $555,750 = $29,530 F

Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead

= $563,096  - $585,280 = $22,184 U

2).

Standard rate of variable overhead = ($813,440 - $585,280) / 496000 = $0.46 per hour

Actual rate of variable overhead = $260,700 / 494000 = $0.5277327935 per hour

Variable overhead spending variance = (SR - AR) * AH = ($0.46 - $0.5277327935) * 494000 = $33,460 U

Variable overhead efficiency variance = (SH - AH) * SR = (477200 - 494000) * $0.46 = $7,728 U

4 0
3 years ago
Maple Farms, Inc. v. City School District of Elmira. Read the summary of the court opinion. Could something like this bankrupt a
tester [92]

The correct answers to these open questions are the following.

Maple Farms, Inc. v. City School District of Elmira.

Could something like this bankrupt a company?

Yes, it can, if the proper forecast were not done taking into consideration all of the possible variables at medium and long-range.

Do you agree with the decision?

It was a tough decision because the court declared in its decision that the performance was not impracticable, as Maple Farm Inc indicated when decided to break the contract.

In strict theory, I agree with the court's decision because the explanation was that an "impractical" occurred when an event happened totally unexpected. And in this case, Mapple Farm Inc could have taken extra provisions knowing that milk had a 10% increase the last year and had the chance of more increases in the present year.

That is how a company can avoid this type of situation. Taking better provisions, contemplating all kinds of variables, knowing that in the future, something unexpected can happen and could be prevented with the proper forecast.

8 0
2 years ago
Leonardo, who is married but files separately, earns $90,000 of taxable income. He also has $8,750 in city of Tulsa bonds. His w
UkoKoshka [18]

Answer: 17.56%

Explanation:

Given that,

Leonardo taxable income = $90,000

Tulsa bonds = $8,750

Theresa taxable income = $50,000

Computation of Leonardo's Tax:

According to the tax rate schedule,

Total Tax = Tax + 24% of taxable income over $82,500

                = $14,089.50 + 24% × $7,500

                = $14,089.50 + $1,800

                = $15,889.5

Computation of Theresa's Tax:

According to the tax rate schedule,

Total Tax = Tax + 22% of taxable income over $38,700

                = $4453.50 + 22% × $11,300

                = $4453.50 + $2,486

                = $6939.5

Total tax on Leonardo's income and Theresa's income:

= $15,889.5 + $6939.5

= $22,829

Effective tax rate = \frac{Total\ Tax}{Total\ Taxable\ Income}\times100

                              = \frac{22,829}{130,000}\times100

                              = 17.56%

5 0
3 years ago
How does financial manager involes operating decision<br>​
daser333 [38]

Answer:

they use financial statements and other information prepared by accountants to make financial decision and are focused on the cash flows, the inflows and outflows of cash.

Explanation:

7 0
2 years ago
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