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schepotkina [342]
3 years ago
10

M2-28. Computing and Comparing Income and Cash Flow MeasuresPenno Corporation recorded service revenues of $200,000 in 2020, of

which $170,000 were on credit and $30,000 were for cash. Moreover, of the $170,000 credit sales for 2020, Penno collected $20,000 cash on those receivables before year‑end 2020. The company also paid $25,000 cash for 2020 wages. Its employees also earned another $15,000 in wages for 2020, which were not yet paid at year‑end 2020. (a) Compute the company’s net income for 2020; and (b) how much net cash inflow or outflow did the company generate in 2020? Explain why Penno’s net income and net cash flow differ.
Business
1 answer:
Zina [86]3 years ago
7 0

Answer:

Explanation:

M2-28. Computing and Comparing Income and Cash Flow MeasuresPenno Corporation recorded service revenues of $200,000 in 2020, of which $170,000 were on credit and $30,000 were for cash. Moreover, of the $170,000 credit sales for 2020, Penno collected $20,000 cash on those receivables before year‑end 2020. The company also paid $25,000 cash for 2020 wages. Its employees also earned another $15,000 in wages for 2020, which were not yet paid at year‑end 2020. (a) Compute the company’s net income for 2020; and (b) how much net cash inflow or outflow did the company generate in 2020? Explain why Penno’s net income and net cash flow differ.

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An examination of the reasons given by people willing to accept the risks of entrepreneurship indicates that: A)the desire to ea
Mariana [72]

Answer:

B)many people become entrepreneurs because they do not enjoy working for someone else.

Explanation:

The examination of the reasons provided by the people who wants to accept the entrepreneurship risk as here most of the people become entrepreneurs but at the same time they dont enjoy working for someone else as they wabt to work for themselves not for someone else

Therefore as per the given situation, the option b is correct

6 0
3 years ago
james​ Lawson's Bed and​ Breakfast, in a small historic Mississippi​ town, must decide how to subdivide​ (remodel) the large old
balu736 [363]

Answer:

The numbers are missing, so I looked for a similar question (see attached image).

  • the expected value for option A (modernize everything) = (0.5 x $90,000) + (0.5 x $25,000) = $57,500
  • the expected value for option B (modernize only second floor) = (0.4 x $80,000) + (0.6 x $70,000) = $74,000
  • the expected value for option C (do nothing) = (0.3 x $60,000) + (0.7 x $33,000) = $41,100

The option with the highest expected value is option B (modernize only second floor).

8 0
4 years ago
In year 1, X Company recognized an impairment loss on the trade name for its beverage product, reducing the carrying value from
ziro4ka [17]

Answer:

The value of the intangible will remain at $350,000

Explanation:

The reason is that the International Accounting Standard IAS-36 says that once the impairment is recognized for the intangible assets it can not be reversed which means that the amount reported would be $350,000. The reason is that it is very rare that the asset gain its value and specially those which are intangible assets. Most of the management in the 1990s-2000 tried to recognize a gain on impairment which was unjustifiable to increase their profits for the period so the standard specifically didn't permitted gain on a previously impaired asset.

6 0
4 years ago
Explain in detail the Modigliani (life‐cycle) theory of consumption. Contrast it with the Keynesian theory of consumption.
nalin [4]

Answer:

y

Explanation:

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6 0
4 years ago
At an activity level of 9,300 machine-hours in a month, Curt Corporation's total variable production engineering cost is $766,32
rewona [7]

Answer:

$102.3 per machine hour

Explanation:

We can compute the total production engineering cost per hour by using the following equation;

Cost per machine hour = (Fixed cost + Variable cost) / Total machine hours

But first, we need to calculate variable cost at 9,600 hours;

= $766,320 × 9,600hr / 9,300hr

= $791,040

Now, cost per machine hour

= $191,040 + $791,040 / 9,600hr

= $982,040 / 9,600hr

= $102.3 per machine hour

5 0
3 years ago
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