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Flura [38]
3 years ago
11

The current sections of Birmingham Inc.’s balance sheets at December 31, 2019 and 2020, are presented here. Birmingham’s net

income for 2020 was $193,000. The income statement included depreciation expense, $25,000, amortization expense, $10,000, and a gain on disposal of equipment, $7,000. The equipment was sold for $47,000. Birmingham also issued bonds for $60,000. 2020 2019Current assets Cash $417,000 $ 99,000 Accounts receivable 120,000 93,000Inventory 159,000 176,000Prepaid expenses 29,000 24,000Total current assets $725,000 $392,000 Current liabilities Accrued expenses payable $ 17,000 $ 6,000 Accounts payable 88,000 94,000Total current liabilities $105,000 $100,000 InstructionsPrepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2020 using the indirect method.
Business
1 answer:
jekas [21]3 years ago
6 0

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense    25,000

amortization expense       10,000

gain on disposal          <u>     (7,000)   </u>

Adjusted Income            221,000

Change in Working Capital:

Increase in A/R        (27,000)

Decreasein Inv          17,000

Increase in Prepaid   (5,000)

Increase Accrued /P   11,000

Decreasein A/P         (6,000)

Change In Working Capital     (10,000)

From Operating Activities    211,000

Investing

Sale of Equipment  47,000

Financing

Bonds Issued   60,000

Cash Flow              318,000

Beginning Cash   99,000

Cash Flow           318,000

Ending Cash        417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

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Tamarisk Corporation purchased a truck by issuing an $118,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rat
lianna [129]

Answer:

Dr. Truck                $80,869

CR. Note Payable $80,869

Explanation:

Note issued is a liability instrument. It is a promise of payment f principal amount and interest after a specific period of time. Zero interst interest bearing not does not offer any interest payment but it is issued at a discounted price . Present value of Note payable is the value that should be recognised as a cost of the truck.

Now calculate the present value of the Note.

PV of Zero coupon bond = FV / ( 1 + r )^n

Where

FV = FV maturity value of the note = $118,400

r = Interest rate = 10%

n=  numbers of period = 4 years

Placing Values in the formula

PV of Zero coupon bond = $118,400 / ( 1 + 10% )^4

PV of Zero coupon bond = $80,869

5 0
3 years ago
Korey is planning to open a comic book store near his home. after completing a population survey for 3,520 homes in a 5 mile rad
astraxan [27]

Kids in grade school have a maximum percentage of 32 reasons that Option (d) is the correct answer.

<h3>why are the grade-school-aged kids surveyed?</h3>

Korey did the market analysis section of his business plan after conducting a population survey of 3,520 homes within a 5-mile radius.

He discovered that younger children who read comic books as children are more likely to read them as adults, resulting in a current and future client base.

For more information about the market analysis survey, refer below

brainly.com/question/3886071

6 0
2 years ago
Read 2 more answers
Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?
poizon [28]
<span>A.) Jessica is low risk and will pay her outstanding balances on time.</span>
6 0
3 years ago
Read 2 more answers
"Bubba is a shrimp fisherman who used $2,000 from his personal savings account to buy a boat and equipment for his shrimp busine
Katyanochek1 [597]

Options:

A. $20

B. $200

C. $40

D. $400

Answer:C. $40

Explanation: Opportunity cost is a term used in Economics to describe the value of the next most profitable alternative of this an investor puts his or her resources into,in this case the opportunity cost for Bubba is the percentage of the interest which Bubba earned from the interest.

Opportunity cost for Bubba can be calculated as follows

(2%/100)* $2,000=$40.

Opportunity cost helps economists to ensure that resources are effectively put to use.

5 0
3 years ago
A client has been given atropine to cause mydriasis and cycloplegia. What is the expected outcome for this client?
Nady [450]

Answer:

dilation of the pupil and loss of accommodation

Explanation:

Mydriasis is the dilation of the pupil of the eye. The dilation causes vision to be blurry.

Cycloplegia on the other hand is the loss of accommodation of the pupil and it is caused by the paralysis of the cilliary muscle of the eye. This paralysis causes the eyes to lose its ability to focus on things nearby.

Looking at this two conditions from the administration of atropine, the expected outcome of the client is blurry vision and inability to focus or see things close by(farsightedness).

I hope this helps.

5 0
3 years ago
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