Answer:
$84,500
Explanation:
Data provided as per the question
Net income = $85,000
Depreciation expenses = $1,500
Accounts receivables = $3,000
Increase in accounts payable = $1,000
The computation of amount of cash provided by operating activities is given below:-
Amount of cash provided by operating activities = Net Income + Depreciation expenses - Accounts receivables + Increase in accounts payable
= $85,000 + $1,500 - $3,000 + $1,000
= $84,500
Therefore, for computing the Amount of cash provided by operating activities we simply applied the above formula.
Answer: 4. Demand will shift inwards, lower rates and decreasing lending.
Explanation:
People demand loanable funds for spending on consumption and investment. If there is a recession, people will buy less goods and companies will invest less as well.
This will reduce the demand that people and companies have for loanable funds. The demand will therefore shift inwards to the left and lead to lower rates and decreased lending.
Answer:
$328,000
Explanation:
As we all know that:
Ending Equity = Opening Equity + Share Issues + Net Income – Net Loss – Dividends Paid
Here,
Opening Equity is $293,000
Money raised through Shares Issuance was $24,000
Net Income would be $69,000
Dividends paid were $58,000
There were no losses as their is Profit for the year (Net Income).
By putting values, we have:
Ending Equity = $293,000 + $24,000 + $69,000 - $58,000
= $328,000
The AAA payed farmers to reduce their production in order to raise prices.
Answer:
As the $3,000 is unrecaptured losses, it will be carried forward to this year and would be set off against the current year's capital gains.
Explanation:
The previous year unrecaptured loss of $3000 will carried forward and would be set off against the capital gains of $12,000. The gain for the year can be calculated as under:
Capital Gain for the year = Gain Before unrecaptured losses - Carried Forward Losses
By putting values, we have:
Capital Gain for the year = $12,000 - $3,000 = $9,000
The resultant $9,000 would be the capital gain for the year.
