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yuradex [85]
3 years ago
5

Consider the same scenario as in the previous question: On March 31, 2015, Cars, Inc. owes Preston Devices, one of its suppliers

, $25,000 for previous purchases. During April 2015, Preston sells Cars devices with a sales price of $10,000 and a cost to Preston of $8,000. During April, Cars pays Preston $12,000 against the amount owed to Preston. If Preston had no other sales and records no other collections from customers during the month of April, the operating section of Preston's indirect method statement of cash flows for April will show the following de-accrual adjustments to net income:
a. Subtract change in accounts receivable; add change in inventory.b. Add change in accounts receivable; subtract change in inventoryc. Add change in accounts receivable; add change in inventory.d. Subtract change in accounts receivable; subtract change in inventory.
Business
1 answer:
zubka84 [21]3 years ago
6 0

Answer:

Explanation:

On March 31, 2015, Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previous purchases. During April 2015, Preston sells Cars devices with a sales price of $10,000 and a cost to Preston of $8,000. During April, Cars pays Preston $12,000 against the amount owed to Preston.

Decrease in Accounts Receivable = 12000-10000 = $2000

Decrease in Inventory = $8000

Decrease in Accounts Receivable and decrease in inventory are added to net income under indirect method statement of cash flows

<h3>Therefore the answer is </h3><h3>Add change in accounts receivable; add change in inventory.</h3>
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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Island Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $375,000 and budgeted machine-hours were 12,500. Actual factory overhead was $387,920 and actual machine-hours were 13,150.

A) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 375,000/12,500= $30 per machine hour

B) Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

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Faith Busby and Jeremy Beatty started the B&amp;B partnership on January 1, Year 1. The business acquired $44,000 cash from Busb
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If Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year. The income statement, capital statement, balance sheet, and statement of cash flows for B&B’s 2016 fiscal year are:

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a. Income Statement

Income Statement for the year ended December 31, 2016  

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b. Capital statement

Capital Statement for the year ended December 31, 2016  

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Add:- Net Income $9,440 $14,160

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[$66,000/($44,000+$66,000)×$23,600=$14,160]

Ending Capital Balance $51,440 $77,660

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Balance Sheet As of December 31, 2016  

Assets  

Cash $129,100

($51,440+$77,660)

Total Assets  $129,100

Liabilities  

Equity  

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Beatty $77,660  

Total Liabilities and Equity  $129,100

d. Cash Flow Statement

Cash Flow Statement  for the year ended December 31, 2016

Cash Flows from Operating Activities:  

Revenue from Operations      $42,000  

Operating Expenses           ($18,400)  

Net Cash flow from operating activities $23,600

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Net Cash flow from Investing activities  $0

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Withdrawal by Partners ($4,500)

($2,000+$2,500)

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Net cash change   $129,100

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Opening cash balance  $0

Ending Cash Balance  $129,100

Learn more here:

brainly.com/question/16751431

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