Answer:
Check the explanation
Explanation:
DR Cash
DR Loss on sale of receivables
DR Receivable from factor
CR Accounts receivable
Debit Credit
1 Cash 58500 =65000*(1-10%)
Loss on sale of receivables 2200
Receivable from factor 3800 =5500-(65000*2%)
Accounts receivable 60000
Answer:
d $3,330
Explanation:
The firm's operating cash flow is computed as;
Sales - Costs - Depreciation expense = EBIT
EBIT = $19,800 - $10,900 - $2,100
= $6,800
EBT = EBIT - Interest expense
EBT = $6,800 - $1,250
EBT = $5,550
Firm's tax rate = 40% × $5,550= $2,220
Operating cash flow = $5,550 - $2,220
Operating cash flow = $3,330
With fixed incomes, because they will find that the money that they have, when inflation occurs, won't be as worth as much before. The people with rising incomes will rise along with the inflation rates, so they will not feel the effect.