Answer:
The answer is to assure funding for future assets.
The answer is because of lack of sufficient operating cash flow.
Explanation:
Companies with promising investments opportunity typically have valuable intangible assets whose value would decline sharply if the company would go into financial difficulty, its important for such company to maintain a financial flexibility that comes with a conservative capital structure to assure funding for future assets.
Poor cash flow is when the income cash flow is insufficient to meet the outgoing cash flow needs of a business and this can also lead to inability to raise additional equity force.
Answer:
Option (D) is correct.
Explanation:
Selling amount of equipment = $80,000
Purchasing price 2 years ago = $75,000
Depreciation expense = $20,000
Gain(Loss) = Cash proceeds - Book value
= $80,000 - ($75,000 - $20,000)
= $80,000 - $55,000
Capital gain = $25,000
Therefore, the amount and character of Bozeman's gain is $25,000.
Answer:
Fabricating Department = $136470= 53000 +total 49100 of $1.7 per direct labor hours
Assembling Department = $$ 90,410= 43000 +total 43100 of $ 1.10 per direct labor hours
Explanation:
<em>When a fixed line intersects a vertical axis at the point of total budgeted cost line represents total cost of the activity . From this we can calculate the following.</em>
Fabricating Assembling
Total Cost for 46100 DLH $131,370 $93,710
Fixed Costs (53000) (43,000)
Variable Costs 78370 50,710
Variable Cost Per hour 78370 / 46100 50,710 / 46100
= $ 1.7 = $1.10
Fabricating Assembling
Total DLH 49100 43100
Variable Cost Per hour $ 1.7 $1.10
Variable Costs $ 83470 $ 47410
Fixed Costs 53000 43,000
Total Budgeted Cost 136470 $ 90,410
Explanation:
The adjusting entry is as follows
Insurance expense A/c Dr $4,800
To Prepaid insurance A/c $4,800
(Being the insurance expense is recorded)
The computation is shown below:
= Beginning balance + debited amount - unexpired insurance amount
= $6,600 + $2,300 - $4,100
= $4,800
So while preparing the adjusting entry, we debited the insurance expense account and credited the prepaid insurance account
Answer:
The correct answer is: Operating budget.
Explanation:
An operating budget is an estimate a business make of the expenses and revenue it plans to book in its ongoing operations. Operating budgets can also be used to forecast future operating corporate periods. This type of budget mainly includes the <em>number of sales expected in dollars</em>, <em>fixed and variable costs</em> as well as <em>operating expenses</em> such as loan payments or depreciation.
