Answer:
The correct answer is d) A deduction from net income in determining cash flows from operating activities.
Explanation:
To get net cash flow using the indirect method we must make adjustments to the net income.
It depends on the account if it is added or subtracted to net income.
In this case, an increase in available-for-sale securities due to an increase in their fair value should be reported as a deduction from net income.
Accomplished, Achieved, Active in, Awarded, Assisted, Broadened, Built, Chaired, Championed, Completed, Delegated, Distinguished, Enacted, Enhanced, Facilitated, Formulated, Graduated, Granted, Handled, Helped, Implemented, Improved, Increased, Initiated, Joined, Kept, Led, Licensed, Managed, Mastered, Navigated, Netted, Obtained, Outlined, Performed, Placed, Qualified, Received, Recorded, Secured, Served, Taught, Trained, Understudied, Undertook, Verified, Volunteered, Widened, Worked.
Hope these help!!!
Answer:
Break-even point = 110 lawns & Break-even sales point = $8,800
Explanation:
Total fixed costs = Depreciation + Advertising + Insurance
Total fixed costs = 1,400 + 200 + 3,680
Total fixed costs = $5280/month
Total variable cost per unit = Weed + Direct labor + Fuel
Total variable cost per unit = 13 + 16 + 3
Total variable cost per unit = $32/lawn
Contribution margin ratio = (Sales per unit - variable cost per unit) / sales per unit
Contribution margin ratio = (80 - 32) / 80
Contribution margin ratio = 0.6
Contribution margin ratio = 60%
Break-even sales = Fixed costs / contribution margin ratio
Break-even sales = $5280 / 60%
Break-even sales = $8800
Break-even sales units = Break-even sales / sales per unit
Break-even sales units = 8800 / 80
Break-even sales units = 110 lawns
Break-even point = 110 lawns & Break-even sales point = $8,800
