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2 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]2 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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The Rogers Corporation has a gross profit of $746,000 and $305,000 in depreciation expense. The Evans Corporation also has $746,

allochka39001 [22]

Answer:

Net cash flow for The Rogers Corporation: $435,200

Net cash flow for The Evans Corporation: $332,400

Explanation:

For The Rogers Corporation:

Income before tax = $746,000 - $305,000 - $224,000 = $217,000

Tax = $217,000 x 40% = $86,800

Net income afer tax = $217,000 - $86,800 = $130,200

Net cash flow = Gross profit - Selling and administrative expense - Tax = $746,000 - $224,000 - $86,800 = $435,200

For The Evans Corporation

Income before tax = $746,000 - $48,000 - $224,000 = $474,000

Tax = $474,000 x 40% = $189,600

Net income afer tax = $474,000 - $189,600 = $284,400

Net cash flow = $746,000 - $224,000 - $189,600 = $332,400

5 0

3 years ago

Research and then discuss the two types of equity found on the balance sheet that contribute to total stockholder’s equity for t

marshall27 [118]

The equity on the balance sheet that contribute to total stockholder’s equity for the corporation are:

stockholders' equity
owner's equity

<h3>What is a total stockholder’s equity?</h3>

The total stockholders' equity means the total value of assets that remains in a business after all the total liabilities have been settled.

However, the stockholders' equity is the most important for rewarding stockholder investment because it is the basis at which a dividend for the stockholder will be calculated.

Read more about stockholder equity

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7 0

2 years ago

Are the following statements true or false? The difference between savings and investments is that savings is money set aside fo

grigory [225]

Answer:

That statement is true.

Explanation:

Basically, You put your money in saving if you intended to use that money for future consumption. You put your money in investment if you intended to make financial gain out of it.

For example,

Let's say that you want to buy a laptop that cost $700. You only able to spend $350 per month since you have to consider other more important payment such as rent or food. So you set aside $350 for two month and purchase the laptop at the end of the second month. This is an example of saving.

In another case let's say that you put that $350 in Bonds rather than purchasing laptop. You Let that bond mature and take a 3% interest as profit. Two month later, the value of your money is increased. This is an example of an investment.

8 0

3 years ago

Read 2 more answers

Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inv

AURORKA [14]

Answer & Explanation:

a.- Revenues: Increase for 3.2 millions

It will be recognize for the entire order, as it was deliveried entirely within the accounting period.

b.- Earnings: Increase for 1.5 millions

The earnings for the business will be the net between the revenues and expenses.

3.2 revenues - 1.7 expenses = 1.5 earnings

c.- Receivables: Increase for 1.8 millions

It will increase for the unpaid portion ofthe order.

d.- Inventory Decrease for 1.7 millions

It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.

e.- Cash: Increase for 1.4 millions

It will increase for the amount received from the customer. As it was no payment from the business in the transaction.

5 0

3 years ago

The phase of the Technology Product Development Cycle that describes key technology that has been integrated into many products

Serga [27]

I believe the correct answer from the choices listed above is option B. The phase of the Technology Product Development Cycle that describes key technology that has been integrated into many products is the mature phase. Hope this answers the question.

4 0

3 years ago

Read 2 more answers