The main feature of this lesson is the equation P(x) = R(x) - C(x). Other important equations to remember are as follows: The breakeven point is when revenue equals cost, or when the profit is zero. Maximum profit will occur when marginal revenue equals marginal cost, or when the marginal profit is zero.
Answer:
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Answer:
Cashflow from Operating Activities $
Net income 61,000
Add: items not involving movement of cash
Depreciation <u>76,000</u>
137,000
Changes in working capital:
Increase in prepaid rent (56,000)
Increase in accounts payable <u>11,000</u>
92,000
Less: Tax <u> 16,000</u>
Cashflow from operating activities <u> 76,000</u>
Explanation:
Cashflow from operaing activities using the indirect method equals net income plus depreciation minus increase in prepaid rent plus increase in accounts payable minus tax.
