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Harman [31]
3 years ago
6

8A. Benton ​Island, Inc. began 2018 with cash of $ 70 comma 000. During the​ year, Benton Island earned revenue of $ 180 comma 0

00 and collected $ 80 comma 000 from customers. Expenses for the year totaled $ 159 comma 000​, of which Benton Island paid $ 85 comma 000 in cash to suppliers and $ 50 comma 000 in cash to employees. The company received $ 1 comma 800 cash for interest revenue and paid $ 11 comma 000 for income taxes. Benton Island also paid $ 30 comma 000 to purchase equipment and a cash dividend of $ 12 comma 000 to its stockholders during 2018. Prepare the​ company's operating activities section of the statement of cash flows for the year ended December​ 31, 2018. Use the direct method. ​(Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the​ statement, leave the box​ empty; do not select a label or enter a​ zero.)
Business
1 answer:
adoni [48]3 years ago
7 0

Answer:

Benton Island, Inc.

Operating Activities Section of the Statement of Cash Flows for the year ended December 31, 2018 (using the direct method):

Cash from customers              $80,000

Cash to Suppliers                      -85,000

Cash to Employees                   -50,000

Income Taxes                              -11,000

Net Cash flow from Operating -66,000

Explanation:

1. The operating activities section shows inflows and outflows of cash resulting from a company's key operating activities.  Operating activities are different from the investing and financing activities of a firm.  The investing activities section shows the investments in assets and other entities made by the company, while the financing activities section shows how the company is funded and the repayments made to fund providers in principal and interest.

2.  The operating activities section can be prepared using two methods: the direct and the indirect methods.  The direct method starts by identifying the cash receipts and payments from operating activities.  The indirect method starts with the operating income and makes adjustments for non-cash flows, like Depreciation.

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3 0
3 years ago
Kuong Inc. sold a commercial office building used in the corporate business for $1.5 million. Kuong purchased the building in 20
mars1129 [50]

Answer: $107,600 ordinary gain and $530,400 Section 1231 gain

Explanation:

Section 1231 property is when a business property that's either real or depreciable is held for more than one year. It should be noted that section 1231 gain which arises when the property is sold will be taxed at lower capital gains tax rate which is versus the ordinary income rate.

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The correct option is C.

7 0
2 years ago
If the cost of goods sold is more than the cost of goods manufactured, then
ivann1987 [24]

Answer:

C. Finished Goods Inventory has decreased.

Explanation:

Cost of goods manufactured (COGM) increases when finished goods inventory is <em>produced</em>, while cost of goods sold (COGS) increases when finished goods inventory is <em>sold</em>. If COGS has been increasing faster than COGM has been increasing, the company has been selling more goods than it has been producing. Therefore, it must have sold goods from its surplus of finished goods inventory. Thus, finished goods inventory has decreased.

8 0
3 years ago
John Williams, manager of Phoenix Entertainment, wants to compute the variable overhead efficiency variance for the year. He has
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Answer:

2nd option is correct.

Explanation:

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Efficiency variance

                                      = (10125-9000) * 30

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2nd option is correct.

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6 0
3 years ago
What is the smallest dollar civil penalty that will be assessed for a single act of misrepresentation?
V125BC [204]

Answer:

The smallest dollar civil penalty that will be assessed for a single act of misrepresentation is $200.

The  correct answer is A

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The civil penalty imposed on a single act of misrepresentation ranges between $200 and $10,000. Thus, the smallest dollar penalty is $200.

8 0
2 years ago
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