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podryga [215]
2 years ago
15

Selected data taken from the accounting records of Laser Inc. for the current year ended December 31, are as follows: Balance, D

ecember 31 Balance, January 1 Accrued operating expenses $5,590 $6,110 Accounts payable (merchandise creditors) 41,730 46,020 Inventories 77,350 84,110 Prepaid expenses 3,250 3,900 During the current year, the cost of merchandise sold was $448,500, and the operating expenses other than depreciation were $78,000.
The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.

Required:

Determine the amount reported on the statement of cash flows for:

(1) Cash payments for merchandise; and

(2) Cash payments for operating expenses.
Business
1 answer:
Olin [163]2 years ago
5 0

Answer:

1. Cash payments for merchandise is $446,030

2.Cash payment for operating expense is $77,870

Explanation:

1. In order to calculate the Cash payments for Merchandise we would have to use the following formula:

   

Cash payments for Merchandise= cost of goods sold +decrease in accounts payable-decrease in inventory

Cash payments for Merchandise=$448,500+$4,290-$6,760  

Cash payment for Merchandise=$446,030

2. In order to calculate the Cash payments for operating expenses we would have to use the following formula:

Cash payment for operating expense=operating expense - decrease in prepaid expense +decrease in Accured

Cash payment for operating expense=$78,000 -$650+$520  

Cash payment for operating expense=$77,870

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Answer:

1. Was East Hill Home Healthcare Services organized as a sole proprietorship, a partnership, or a corporation?

East Hill Home Healthcare Services should be considered a closed corporation since there is a small number of stockholders and its shares are not traded in an open trade market.

2. During the current year, the records of the company were inadequate. You were asked to prepare the summary of the preceding transactions.

Since there is not enough room here, I used an excel spreadsheet.        

4. What amounts do you need? If some amount is missing, look at the attached PDF.

total assets = $870,000

total liabilities = $280,000

total equity = $590,000

current assets = $134,500

current liabilities = $100,000

5. Compute the current ratio for the current year

current ratio = current assets / current liabilities = $134,500 / $100,000 = 1.345

     

Download pdf
8 0
3 years ago
Brian invests $11,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for hi
Katena32 [7]

Answer:

The important thing to remember here is that the interest is compounded semi annually, which means twice a year. When the 1st interest is compounded, the second interest is calculated on that new amount.

(11,500 + (11,500×6%)) = $ 12,190

(12,190 + (12190×6%)) = $ 12921.40

Explanation:

4 0
3 years ago
One year ago, Stacey purchased 100 shares of KNF stock for $3,245. Today, she sold those shares for $35.00 per share. What is th
Nataly [62]

Answer:

7.86%

Explanation:

The computation of the capital gain yield on the investment is shown below:

As we know that

Capital gains yield is

= (Selling price per share × number of shares purchased) ÷ (Stock value) - 1

= $3,500 ÷ $3,245 - 1

= 0.07858

= 7.86%

We simply applied the above formula so that the capital gain yield could come and the same is to be considered

3 0
3 years ago
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 5
balu736 [363]

Explanation:

Since the cash flows are given in the question for the Investment A and the Investment B  

So, the present value could be find out by multiplying the each year cash inflows with its discounted factor i.e 9%

So that the present value could come

The discount factor should be computed by  

= 1 ÷ (1 + rate) ^ years

The attachment is shown below:

4 0
3 years ago
Self-imposed budgets typically are:
Pepsi [2]

Answer:

C. subject to review by higher levels of management in order to prevent the budgets from becoming too loose.

Explanation:

Self-imposed budgets typically are subject to review by higher levels of management in order to prevent the budgets from becoming too loose.

Self-imposed budget also known as the participative budget is a type of budget where individuals having responsibility for controlling costs, prepares their own budget estimates and present them to the top level of management for review.

3 0
3 years ago
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