1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.  

You might be interested in
Which of the following would make it easier to maintain an effective collusive agreement in a cartel?
GalinKa [24]

Answer:

A decrease in the elasticity of demand for the cartel's product.

Explanation:

The cartel is under the control of companies operating in the same area. This is undesirable. It is concluded between businesses and these contracts prevent competition. Such arrangements are also prevented by governments, which aims to promote competition among governments across the country. This type of arrangement creates unity and demonstrates business behavior in activities that prevent other competitors from entering the sector.

Adverse effects on consumers include:

1) Higher prices - cartel members can raise prices, which reduces the demand elasticity of any member.

2)  Lack of Transparency - Members may agree to hide prices or hide information such as hidden charges in credit card transactions.

3) Limited production - Members may agree to limit market production, such as OPEC and oil quotas.

4) Build Market - Cartel members can collectively divide a market into regions or regions and not compete in each other's territory.

4 0
3 years ago
Cusic Industries had the following operating results for 2019: sales = $34,621; cost of goods sold = $24,359; depreciation expen
Stolb23 [73]

Answer:

a. $1,132.50

b. $9,884.50

c. $10,586

d.1 $2,725

d.2 - $4,363.50

Explanation:

a. The computation of the net income is shown below:

= Sales - cost of good sold - depreciation expense - interest expense - income tax expense

= $34,621 - $24,359 - $6,027 - $2,275 - 377.50

= $1,132.50

The income tax expense

= ($34,621 - $24,359 - $6,027 - $2,275) × 25%

= $377.50

b. The operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,

EBIT =  Sales - cost of good sold - depreciation expense

       =  $34,621 - $24,359 - $6,027

       =  $4,235

And all other items would remain same

Now put these values to the above formula

So, the value would equal to

= $4,235 + $6,027- $377.50

= $9,884.50

c. Computation of the cash flow from assets for 2019 is shown below:

= Operating cash flow - net capital spending - changes in working capital

where, net capital capital = ending fixed assets - beginning fixed assets + depreciation

= $24,529 -  $19,970 + $6,027

= $10,586

Changes in working capital = (ending balance of current assets - ending balance of  current liabilities) - (beginning balance of current assets - beginning balance of  current liabilities)

= ($8,702 - $4,700) - ($7,075 - $4,010)

= $4,002 - $3,065

= $937

Now put these values to the above formula  

So, the value would equal to

= $9,884.50 - $10,586 - $937

= - $1,638.50

d.1 The computation of the cash flow to creditors is shown below:

= Interest expense - ending balance of long term debt + beginning balance of long term debt

= $2,725 - 0 + 0

= $2,725

d.2 The computation of the cash flow to stockholder is shown below:

= Cash flow from asset - cash flow to creditors

=  - $1,638.50 -  $2,725

= - $4,363.50

6 0
3 years ago
Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase
lutik1710 [3]

Answer:

Yes, sales have increased as a result of the advertising campaign.

Explanation:

Find attached the explanation.

Note: I had to convert the explanation into both jpeg and files (both contains the same answer) when the answer box kept on rejecting my answer claiming it contains swear words when it does not.

3 0
3 years ago
You plan to retire at age​ 65, and you want to have enough money in your savings account to withdraw​ $54,000 every year for 20
leonid [27]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

3 0
3 years ago
Economists generally argue that:
djverab [1.8K]

Answer: A. costs of moderate inflation are nearly zero whereas high inflation is quite costly.

Explanation:

Economists generally believe that moderate inflation is actually good for the economy as prices need to increase in a healthy manner overtime in order to drive consumption. This means that to them, the cost of moderate inflation is nearly zero.

This is a sharp contrast to high inflation which most economists generally believe to be costly as it reduces the savings of people as well as their real wages and welfare.

8 0
2 years ago
Other questions:
  • Trevor Williams’ bank calculates interest daily. At an APR of 3%, how much simple interest does $2,000 earn in twelve days?
    9·2 answers
  • You currently own a portfolio valued at $52,000 that has a beta of 1.16. you have another $10,000 to invest and would like to in
    11·1 answer
  • A limited liability corporation's (LLC) equity is reported similar to that of a a.trust. b.regular corporation. c.partnership. d
    13·1 answer
  • The purpose of having a minimum wage is to _____. a. Educate workers about what they could be making b. Guarantee that workers a
    10·2 answers
  • Organizations are often divided into units or departments. Which of these is NOT a common way to organize a company?
    13·1 answer
  • In July, Harry's shoes sold 8 pairs of purple crocs for $75 each. On the first day of August, he lowered the price of purple cro
    7·1 answer
  • Fill in the blanks.
    13·1 answer
  • Alan, an accountant in a law firm, is summarizing his company’s expenses and revenue in the form of an income statement. However
    14·2 answers
  • Money that you owe the Internal Revenue Service because you did not pay enough in over the year is known as a ________________.
    15·1 answer
  • the product life cycle (plc) defines the life of a product in four basic stages, which include .
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!