Answer:
$4,200
Explanation:
Data provided in the question:
Cash dividend payments = $25,000.
Cash from selling of Long-term investments = $79,000.
Cash used for purchasing a building costing $198,000 = $19,800
Sale of equipment = $37,000
Long term note payable = $92,000 cash
Now,
The net cash from investing activities will be
= sale of long term investments - purchase of building + sale of equipment - purchase of investments
= $79,000 - $19,800 + $37,000 - $92000
= $4,200.
Answer:
<u>Total cash receipts = 123,000</u>
Explanation:
September cash receipts:
30% of september sales:
30% of 130,000 = 39,000
70% of August sales (previous month)
70% of 120,000 = 84,000
Total cash receipts = 123,000
Note: We are asked for september collection from sales:
30% of september is in cash, so are colected instantly.
Then the remaining, which are credit sales are canceled in the following month.
So the credit sales of August are collected in the following month, which is september. That's why it is included in the calculation.
July sales are colelcted in July and August, none in september.
Answer:
take a complex, real-world issue and simplify it down to its essentials.
Explanation:
A theory can be defined as a simplified but abstract representation that gives a detailed relationship about the interaction between two or more variables.
Generally, the main purpose of a theory is to take a complex, real-world issue and simplify it down to its essentials. Thus, in economics, a theory gives a detailed explanation and an understanding of issues such as inflation, recession, taxation, etc and any problem associated with them.
In order to test theories, economists usually make use of economical models such as the production possibility frontier (PPF), Mundell-Fleming model, Classical model, Keynesian IS/LM model, Solow growth model, etc.
