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liq [111]
3 years ago
12

Bravo Company began operations at the beginning of 20X6 with a $10,000 cash investment by stockholders. During 20X6, Bravo Compa

ny had revenue on account of $5,000; of this amount $2,000 was collected during 20X6 and $3,000 was an outstanding r incurred $3,000 of operating expenses during 20X6; of this amount $1,000 was unpaid at year end. During 20X6, $1,000 cash was disbursed as dividends. The only other transaction during 20X6 was the purchase of $5,000 of equipment for cash near the end of the year. How much was Bravo Company's 20x6 net income? le at year-end. Bravo Company 1b Beginning stockholders' equity was $120,000. Ending stockholders' equity was $195,000. Additional issuances of capital stock during the year amounted to he yeur amounied io $12000 How amuch income ar he year?
Business
1 answer:
aniked [119]3 years ago
3 0

Answer:

There are two unrelated sub-question in this question.

First question from start to the question: "How much was Bravo Company's 20x6 net income? le at year-end": The answer is $2,000.

Second question start from the end of the first question to the end. The question is: How much income for the year?": The answer is: $63,000.

Explanation:

* First question: Assume Bravo Company applies accrual accounting, we have: Bravo Company's 20x6 net income = Revenue for 20x6 - Expenses for 20x6 ( ignore cash flow because accrual accounting recorded revenues/expenses when they are earned/incurred rather than cash is collected/paid) = 5,000 - 3,000 = $2,000.

* Second question: We have income for the year = Ending Balance of equity - Beginning balance of equity - Additional issuance of equity ( as there is no information on dividend distribution or opening balance of retained earnings) = 195,000 - 120,000 - 12,000 = $63,000.  

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A company has a net cash inflow from operating activities of $793,000, a net cash outflow of $58,000 from investing activities a
IRINA_888 [86]

Answer:

Incorrect Statement about the Statement of Cash Flows:

c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.

Explanation:

Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.

Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections.  The operating activities section show the cash flows from the normal business of the enterprise.  The investing activities section shows the acquisition and disposal of investments made by the company in cash.  While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.

4 0
3 years ago
McCann Co. has identified an investment project with the following cash flows.
Ugo [173]

Answer:

The present value at 11% is $3,902.13,$3,479.85  at 16% and $2,615.57  at 30%

Explanation:

The present value formula is given as :

PV=FV/(1+r)^n

Where FV is the future value of cash flows such as the ones given in the question

r is the rate of return at 11%,16% and 30%

n is the applicable time horizon relevant to each of the cash flow.

Find attached spreadsheet for detailed calculations.

Download xlsx
7 0
3 years ago
Read 2 more answers
What is a subsidy wedge? the combined reduction in consumer surplus and producer surplus that results from a subsidy the amount
solmaris [256]

Answer:

the difference between the price that sellers receive and the price that buyers pay, resulting from a subsidy government cheese.

Explanation:

In Economics, subsidy can be defined as the amount of money or benefits such as tax reduction given by the government to sellers in order to sustain production and enable the buy to continuously purchase the product.

A subsidy wedge can be defined as the difference between the price that sellers receive and the price that buyers pay, resulting from a subsidy government cheese.

8 0
3 years ago
Three weeks ago, you purchased a July 45 put option on RPJ stock at an option price of $3.20. The market price of RPJ stock thre
Anton [14]

Answer:

$25

Explanation:

We can calculate intrinsic value by intrinsic formula

Formula : intrinsic Value = (purchased price- current price) x 100

intrinsic Value = (45-44.75) x 100

intrinsic  Value =  $25

5 0
3 years ago
Sheridan Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is avai
il63 [147K]

Answer:

Closing inventory - $10,160

Costs of goods sold - $9,600

Explanation:

Under the LIFO Method, the cost of good sold equals to

= April 23 units × cost per unit + Remaining units × cost per unit

= 300 units × $22 + 150 units × $20

= $6,600 + $3,000

= $9,600

Since the firm has sold 450 units, so out of which 300 units sold at a price of $22 and the remaining 150 units sold at a price of $20

The ending inventory equals to

= Remaining units × cost per unit + April 1 × cost per unit

= 270 units × $20 + 280 units × $17

= $5,400 + $4,760

= $10,160

Since on April 23, the 420 units were purchase, out of which 150 units are transferred to the cost of good sold and the remaining units 270 units at $20 is transferred to the ending inventory

8 0
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