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3 years ago

Presented below is the operating activities section of the statement of cash flows for Golden Consulting for 2016:

Business

1 answer:

dimaraw [331]3 years ago

6 0

Answer:

b. The indirect method

Explanation:

The Operating Activity Section Calculates the Net Cash flow from Operating Activities. It can be prepared in only two methods according to IAS 7.The methods are Indirect Method, Direct Method

Indirect Method Reconciles the Net Income for the Year to the Net Cash flow from Operating Activities after adjustments of Non- Cash flow Items, and Adjustments for Working Capital Movements.

Direct Method focuses on the Cash Inflows and Outflows related to the Operating activities to Calculate the Net Cash flow from Operating Activities.These Cash flows results from Receipts from Customers and Payments made to Suppliers and Employees

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Halverstein Company's outstanding stock consists of 9,450 shares of cumulative 5% preferred stock with a $10 par value and 4,050

Vsevolod [243]

Answer:

e. $6,000 preferred; $0 common.

Explanation:

The Preference Stock holders hold first preference during payment of dividends followed by the Common Stockholders.

Note also that Cumulative Preference Stock can have their dividends accumulated and paid in the latter years when funds become available.

Amount of Preference Stock dividend is fixed and calculated as follows:

9,450 shares × $10 × 5% = $ 4,725

2015

Cash dividends = $0

Preference Stock dividend Paid = $0

Preference Stock dividend Arrears = $ 4,725

No Common Stock Dividend

2016

Cash dividends = $6,000

Preference Stock dividend Paid = $6,000

Preference Stock dividend Arrears = $ 3,450

No Common Stock Dividend

4 0

3 years ago

Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 1,

Vesna [10]

Answer:

D. $33.47

Explanation:

The computation of overhead cost per skateboard using an activity-based costing system is shown below:-

Total Expected Activity

Activity pool cost Overheads Activity Rate

Setup cost $6,550 665 9.85

Engineering cost $16,000 1,120 14.29

maintenance cost $91,450 4,353 21.01

Activity pool cost Rate Driver Overhead cost

Setup cost 9.85 320 3,152

Engineering cost 14.29 630 9,002.7

maintenance cost 21.01 2,178 45,759.78

Total Overheads cost 57,914.48

Number of units 1,730

Overhead cost per unit $33.48

Therefore for computing the overhead cost per unit we simply divide the total overhead cost by number of units.

8 0

3 years ago

A company orders office supplies in June. Those supplies are received and used in July. The supplies are paid for in August. In

Leviafan [203]

Answer:

Expense must be recognized in July

Explanation:

The reason is that the expense must be recognized in the month in which the supplies are used because the accrual concept says that the expenses must be realized when they are incurred. Incurred means that the consideration received has been used. For example if I pay the telecommunication network in June to give 4G internet and the services are delivered in the month July then the expenses will be realized in the month in which the services were used and that is July for internet facilities. So in this case the supplies are used in the month of July which is in-accordance with the accrual concept.

8 0

3 years ago

Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100

Soloha48 [4]

Answer:

a. The variable costing operating income is less than absorption costing operating income.

b. The difference in variable costing and absorption costing operating income is:

= $739,200.

Explanation:

a) Data and Calculations:

Fixed manufacturing costs per unit = $44

Variable manufacturing costs per unit = $100

Production units = 67,200

Sales units = 50,400

Ending inventory = 16,800

Income Statements Variable Absorption

Costing Costing

Costs of goods sold: $5,040,000 $7,257,600

Fixed expenses 2,956,800

Total costs $7,996,800 $7,257,600 $739,200

b) The difference in variable costing and absorption costing operating income is because of the absorbed fixed costs in ending inventory, which is now carried forward to the next accounting period.

4 0

3 years ago

According to the _________ concept, a firm must (1) find out what customers want and provide it, (2) make sure everyone in the o

In-s [12.5K]

Answer: marketing

Explanation: In simple words, marketing refers to the set of activities that are performed by an organisation with the objective promoting the products that they are offering in the market.

It focuses on providing the customer those products that increases their level of satisfaction to the maximum level. It involves ascertaining the needs of customers and then making a suitable product.

Thus, from the above we can conclude that the correct option is C.

5 0

3 years ago