Lucia Ltd. reported net income of $135,000 for the year ended December 31, 2016. January 1 balances in accounts receivable and a
1 answer:
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Answer:
1. True, 2. True, 3. True, 4. False, 5. False, 6. True, 7. True, 8. True, 9. False, 10. False, 11. False, 12. False
Explanation:
1. The variable manufacturing cost will remain same as cost behavior patterns remain unchanged.
2. Total fixed cost increases as level of production increases.
10000 units: 10050 units
Variable cost= (70x10000) x40%=$280000 (70x10050)x40%=$281400
Fixed Cost-= 700000-280000= $420000 703500-281400=$422100
3. Increase in level of production will cause the total manufacturing cost to increase.
4. At 10000 units, = 42/unit
10050 units, = $42/unit
5. The total variable manufacturing cost will be greater than last month
At 10000 = (70x10000) x 40% = $280000
At 10050 = (70x10050) x 40% = $281400
6. At 10000 = 70 x 10000 = $700000
At 10050 = 70 x 10050= $703500
7. Cost behavior remain unchanged
70 x 40% = $28
8. Total manufacturing cost = total manufacturing variable + total manufacturing fixed cost
703500 = 281400 - Fixed cost
Fixed cost = $ 422100
9. Total manufacturing cost = 70 x 10050 = $703500
10. = $42/ unit
11. Increase in level of production will increase total manufacturing variable cost
(70x10000) x 40% = 280000
(70x10050) x 40% = 2814000
12. Cost behavior pattern unchanged
= $70
Answer:
IKIBAN INC.
Statement of cash flow using indirect method for
the year ended June 30, 2019
Particulars Amount $
Cash flow from operating activities
Net Income 145,510
<em>Adjustments to reconcile net income to net</em>
<em>cash provided by operating activities </em>
<u>Adjustment for non cash effects</u>
Depreciation 81,600
Gain on sale of equipment -4,300
<u>Change in operating assets & liabilities</u>
Increase in accounts receivable -25,500
Decrease in inventory 34,200
Decrease in prepaid expenses 3,300
Decrease in accounts payable -16,500
Decrease in wages payable -11,300
Decrease in income taxes payable <u>-2,700 </u>
Net cash flow from operating activities (A) 204,310
Cash Flow from Investing activities
New equipment purchased -80,600
Equipment sold <u>12,300</u>
Net cash Flow from Investing activities (B) -68,300
Cash Flow from Financing activities
Cash dividends paid -162,310
($31,000 + $145,510 - $14,200)
Common stock issued 83,000
Notes payable paid <u>-30,000</u>
Net cash Flow from Financing activities (C) -109,310
Net Change in cash = A+B+C $26,700
($204,310 - $68,300 - $109,310)
Beginning cash balance <u>$67,000</u>
Closing cash balance <u> $93,700</u>
