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vfiekz [6]
3 years ago
8

A company's income statement showed the following: net income, $122,000; depreciation expense, $34,000; and gain on sale of plan

t assets, $8,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,200; merchandise inventory increased $22,000; prepaid expenses increased $7,000; accounts payable increased $4,200. Calculate the net cash provided or used by operating activities.
Business
1 answer:
Airida [17]3 years ago
6 0

Answer:

cash generated from operating activities 133,400

Explanation:

net income                     122,000

non-monetary adjustment

depreciation expense     34,000

gain on sale                      (8,000)

adjusted income             148,000

↑↓

Changes in working capital

↓10,200 on AR                   10,200

↑22,000 on Inventory     (22,000)

↑7,000 prepaid expenses (7,000)

↑4,200 account payable    4,200

total change in WP         (14,600)

cash generated from operating activities 133,400

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Ede4ka [16]

Answer:

The accounting entry for each transaction is given below.

Gibson contributed $10,000 to the business in exchange for capital.

Debit Cash Asset       $10,000

Credit Capital              $10,000

b. Purchased equipment for $5,000 on account.

Debit equipment Asset      $5,000

Credit Payable Liability       $5,000

c. Paid $400 for office supplies.

Debit payable         $400

Credit Cash Asset   $400

d. Earned and received $2,500 cash for service revenue.

Debit Cash Asset    $2,500

Credit Income          $2,500

e. Paid $400 for wages to employees.

Debit Wages expense   $400

Credit Cash Asset          $400

f. Gibson withdrew $1,000 cash

Debit Capital          $1,000

Credit Cash Asset  $1,000

.g. Earned $1,000 for services provided. Customer has not yet paid.

Debit Receivable           $1,000

Credit Service Income   $1,000

h. Paid $1,000 for rent.

Debit Rent expense   $1,000

Credit Cash Asset      $1,000

i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

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8 0
3 years ago
A point outside the production possibilities curve represents a combination of goods that is
pochemuha

Answer:

A production combination outside of the PPF is unattainable by the economy with the given resources and technology.

This represents the Concept of scarcity in economics.

If the economy wishes to achieve the production point outside the frontier, they will have to enhance the production possibility capacity by introducing new technology or finding new resources.

Explanation:

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3 years ago
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Post a picture or something because that doesn’t make any sense
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3 years ago
MGM Resorts Incorporated is expected to grow at an exceptionally high rate over the next 2 years due to the success of Macau cas
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Answer:

The value of a share of MGM Resorts stock today will be $16.42

Explanation:

In order to calculate the value of a share of MGM Resorts stock today we would have to calculate the following steps:

Step-1, Dividend for the next 2 years

Dividend per share in Year 0 (D0) = $1.20 per share

Dividend per share in Year 1 (D1) = $1.4400 per share [$1.20 x 120%]

Dividend per share in Year 2 (D2) = $1.7280 per share [$1.4400 x 120%]

Step-2, Share Price in Year 2

Dividend Growth Rate after Year 2 (g) = 4.00% per year

Required Rate of Return (Ke) = 14.00%

Share Price in Year 2 (P2) = D2(1 + g) / (Ke – g)

= $1.7280(1 + 0.04) / (0.14 – 0.04)

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As per Dividend Discount Model, Current Stock Price the aggregate of the Present Value of the future dividend payments and the present value the share price in year 2

Year      Cash flow ($)        PVF at 14.00%           Present Value of cash flows ($)

                                                                             [Cash flows x PVF]

1            1.4400                   0.877193                           1.26

2           1.7280                  0.769468                          1.33

2            17.97                   0.769468                          13.83

TOTAL   16.42

Hence, the value of a share of MGM Resorts stock today will be $16.42

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According to research on marital satisfaction in couples with children, the shape of the marital satisfaction curve across time
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Increasing then decreasing.
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