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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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Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other s

GarryVolchara [31]

Answer:

These kind of fees that are deducted for advertising and other sales expenses directly from the fund rather than billing investors is known as 12 B-1 charges.

Explanation:

This is a fee assessed from a mutual fund to it's investors. The managers instead of charging or billing the investors, deduct certain amount directly from the fund itself. This is a type of annual marketing and distribution fee considered as operational expense and is included in a fund's expense ratio.

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2 years ago

For most companies, the web ______ the threat that new competitors will enter the market by ______ traditional barriers to entry

Andrei [34K]

Answer: b. Increases, decreasing

Explanation: For most companies, the web increases the threat that new competitors will enter the market by decreasing traditional barriers to entry. Traditional barriers to entry include

a. Economies of scale

b. Product differentiation

c. Capital requirements

d. Switching costs

e. Access to distribution channels

f. Cost disadvantages

g. Government policy

thus, by reducing some of these barriers to entry the Web increases the threat of new competition.

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3 years ago

Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not ro

____ [38]

Answer:

Interest= $90

Explanation:

Giving the following information:

Initial investment= $3,000

i= 3%

Number of periods= 1

First, we need to calculate the future value, using the following formula:

FV= PV*(1+i)^n

FV= 3,000*1.03= $3,090

Now, the interest earned:

Interest= 3,090 - 3,000

Interest= $90

8 0

3 years ago

Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of . The company u

Papessa [141]

Answer:

4.2 years

Explanation:

Here is the complete question

Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of $44,000. The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.

Required:

Compute Project A's payback period.

Payback = amount invested / cash flow

cash flow = net income + depreciation

depreciation = (cost of asset - salvage value) / useful life

(385,000 - 44,000) / 5 = 68,200

Cash flow = 68,200 + $ 23,100 = 91300

$ 385,000 / 91300 =4.2

6 0

3 years ago

The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:

Dvinal [7]

Answer:

1. $132,600

2. $7,700

3. $25,600

Explanation:

1. Calculation to determine Total current assets

First step is to calculate the Current liabilities using this formula

Current liabilities = salaries payable + accounts playable + accrued interest

Let plug in the formula

Current liabilities= 19000 + 58000 + 1000

Current liabilities= 78000

Now let calculate the Total current assets using this formula

Total current assets = current ratio * current liabilities

Let plug in the formula

Total current assets = 1.7* 78000

Total current assets = $132,600

Therefore Total current assets is $132,600

2. Calculation to determine Short-term investments

Using this formula

Short term investments = Current assets - [cash + accounts receivables + inventory]

Let plug in the formula

Short term investments = 132,600 - [6900 + 39,000 + 79,000]

Short term investments = $7,700

Therefore Short term investments will be $7,700

3. Calculation to determine the Retained earnings

Using this formula

Current assets + fixed assets = Current liabilities + Long term liabilities + paid in capital + retained earnings

Let plug in the

132,600 + 215,000 = 78,000 + 49,000 + 195,000 + Retained earnings

347,600 = 322,000 + retained earnings

Retained earnings = 347,600 - 322,000

Retained earnings = $25,600

Therefore Retained earnings will be $25,600

8 0

3 years ago