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3 years ago

Statement of Cash Flows—Indirect Method

Business

1 answer:

GaryK [48]3 years ago

8 0

Answer:

Statement of Cash Flows

Cash flow From Operating Activities

Net income $524,580

Adjustment for Non Cash Items :

Depreciation expense - buildings $51,660

Depreciation expense - machinery and equipment $22,680

Patent amortization $5,040

Adjustments for Changes in Working Capital Items :

Increase in Accounts receivable -$73,080

Decrease in Inventories $134,680

Increase in Prepaid expenses -$6,400

Decrease in Accounts payable -$89,600

Net Cash From Investing Activities $569,540

Cash flow From Investing Activities

Buildings -$579,600

Net Cash From Investing Activities -$579,600

Cash flow From Financing Activities

Mortgage Note $224,000

Dividends Paid -$123,480

Net Cash From Financing Activities $100,520

Movement during the year $82,320

Cash and Cash Equivalents at beginning of the year $360,920

Cash and Cash Equivalents at end of the year $443,240

Explanation:

For Determination of Dividends Paid, open a Dividends Paid Account as follows :

Debit:

Cash (Balancing figure) 123,480

Balance c/d 32,760

Totals 156,240

Credit

Balance b/d 25,200

Dividends Declared 131,040

Totals 156,240

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3 years ago

When the Federal government takes action to change taxes and spending to stimulate the economy such policy is:_________

vova2212 [387]

Answer:

c. Discretionary

Explanation:

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3 years ago

States request assistance from other states through interstate mutual aid and assistance agreements such as:

egoroff_w [7]

States request assistance from other states through interstate mutual aid and assistance agreements such as Emergency Management Assistance Compacts (EMACs)

Explanation:

EMAC, Emergency Management Assistance Compact-all aspects of mutual assistance compact which is at the core of the nation's program of mutual aid.

Since the 1950 Civil Defense and Disaster Treaty signed by the US, EMAC is the first treaty national disaster relief international. Convention. Convention. In 1996, 50 states have passed laws to become EMAC participants in their adoption and signing into statute, Columbia, Puerto Rico, Guam, US Virgin Islands and the Northern Mariana Islands.

A flexible and clear program allowing states to send personnel, supplies and resources to help in response and rehabilitation in other states provides assistance in Governor-declared emergencies or disaster areas.

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3 years ago

Information for Basic Factory, Inc., as if December 31 follows:

gavmur [86]

Answer:

Basic Factor, Inc.

Cost of Goods Manufactured statement for the year ended December 31:

Opening Raw Materials Inventory = $88,000

Direct Materials = $180,000

Total cost of raw materials available = $268,000

Less Closing Raw Materials Inventory = $68,000

Cost of raw materials used in production = $200,000

Opening goods in process inventory = $25,000

Cost of raw materials used in production = $200,000

Direct Labour = $88,000

Factory Supplies = $9,500

Total Direct Cost = $322,500

Less closing goods in process inventory = $29,800

Prime Cost = $292,700

add Fixed Factory Cost:

Depreciation of Equipment = $27,000

Factory Rent = $20,000

Factory Utilities = $16,000

Factory Insurance = $17,000

Cost of Manufactured Goods = $372,700

Explanation:

Cost of manufactured goods is the managerial accounting term used to describe the total cost incurred in producing goods. It includes not only the variable costs, but also the fixed costs of production.

A step-by-step method of preparing the statement of Cost of Manufactured Goods (COGM) yields the costs of raw materials available for production, the cost of raw materials used, the total direct cost, and the prime cost.

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3 years ago