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3 years ago

Mark Paxson maintains that the statement of cash flows is an optional financial statement. Do you agree? Explain.

Business

1 answer:

AlekseyPX3 years ago

6 0

Answer:

I Disagree

Explanation:

The statement of cash flows is of extreme importance for a company and its stakeholders (especially investors). It shows how activities affecting the balance sheet and the financial statement also affect cash and cash equivalents, and while it is true that the balance sheet has an account under that name, it does not provide enough detail.

The statement of cash flows on the other hand details how much cash the company gets from financing, operating, and investing activities, and from this information, a potential investor can make crucial analysis when determining whether to invest or not.

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The ledger of American Company has the following work in process account. Work in Process—Painting 5/1 Balance 3,690 5/31 Transf

liubo4ka [24]

Answer:

How many units are in process at May 31?

physical units ending WIP: 740

equivalent units WIP materials: 740

equivalent units WIP conversion: 296

Explanation:

We will add the beginning and started units, then subtract the trasnaferrd out to get the ending WIP inventory.

physical units:

beginning 490

started 1,650

transferred-out (1,400)

ending 740

Now we will multiply by the percentage of completion to get the equivlent units of WIP on each category:

equivalent units for ending WIP:

materials 740 x 100% = 740

conversion 740 x 40% = 296

4 0

3 years ago

Even if your family can pay the full amount of attending college, filling out the Free Application for Federal Student Aid (FAFS

Olegator [25]

I believe the answer is D

4 0

2 years ago

Read 2 more answers

Richard and Alice are divorced and under the terms of their written divorce agreement signed on December 30, 2011, Richard was r

murzikaleks [220]

Answer:

$10,800

Explanation:

Alice's gross income must include the money she received from Richard as part of their divorce settlement, excluding the amount set for child support:

Alice's gross income = 12 x ($1,500 - $600) = 12 x $900 = $10,800

The extra money that Richard gave Alice that was not part of the divorce settlement is not included in her gross income, since it is included in Richard's gross income.

4 0

3 years ago

The following data are for Lily Kay Company. Total sales revenue $250,000 Number of units sold 50,000 units Contribution margin

eduard

Answer:

b. 51,429 units

Explanation:

If x = Number of units

Net Income = Sales Revenue - Variable Cost - Fixed Cost

Net Income = Contribution Margin - Fixed Cost

where,

Net Income = $80,000

Contribution Margin per unit = $3.50

Fixed Cost = $100,000

Contribution Margin = Net Income + Fixed Cost

$3.50x = $80,000 + $100,000

$3.50x = $180,000

Dividing the above equation by $3.50 we get

x = $180,000 / $3.50

x = 51,429 units

Hence 51,429 number of units must be sold to generate the net income of $80,000.

3 0

3 years ago

Howard Enterprises, which has three departments, recently reported the following results: A B C Sales revenue $ 12,000 $ 48,000

almond37 [142]

Answer:

Department C should be closed

Explanation:

To determine whether or not it will be profitable to drop a loss making department, we compare the savings in fixed cost to the lost contribution from the division.

For Howard Enterprises, the department with a negative contribution should be closed otherwise its operation would reduce the overall profit by the amount of the negative contribution.

So lets work out the contribution for each department by adding back the apportioned fixed cost. See table below

A B C

$ $ $ Total

Sales Revenue 12,000 48,000 40,000 100,000

Operating cost 11,400 59,800 50,500

Operating income 600 (11,800) (10,500)

*Add back apportioned fixed cost 3,000 12,000 10,000

Contribution 3,600 200 (500)

*Apportioned fixed cost

A- 12,000/100,000× 25,000 = 3,000

B- 48,000/100000 × 25,000 = 12,000

C- 40,000/100,00×25,000 = 10,000

From the above analysis, Department C generates a negative contribution. It implies that it can barely cover its direct cost and so will deplete the total profit by its negative contribution. Hence, it should be closed

Department C should be closed

7 0

3 years ago