Answer:
(The data is missing so we cannot prepare the complete cash budget but lets see how it is prepared. The data given in the question has only been added in cash budget)
Cash Budget is prepared in same way as statement of cashflow. The detail cash budget format is given below.
Poster Company
Cash budget
1st and 2nd quarter
Cash from operations
Sales xxxx
Purchase (xxxx)
Other expenses paid (xxxx)
Net cash from operation xxxx
Cash from Investment activities
Sale of Assets (10,000+4,500) $ 14,500
Any investment made (xxxxxx)
Net Cash from investing activities xxxxxx
Cash from Finance Activities
Financial Charges paid ( xxxxxxx)
Dividednd paid $ 4,500
Net Cash from Financing activities xxxxxxxx
Net cash increase/ decrease xx/ (xx)
Opening balance $60,359
Cash balance at end xxxxx
(xxx represents missing values)
Answer:
Any commodities which are produced at home and yield utility to the family
Explanation:
Household production occur when member of a household produce goods and service for their own personal consumption or for their own personal use, using their own capital as well as their own unpaid labor .
In another word in HOUSEHOLD PRODUCTION the member of the household are both the producers as well as the consumers of the goods produce by them.
Example of these household consumption are: Foods, Clothes Acommodation among others. Therefore we can vividly say that HOUSEHOLD PRODUCTION consists of Any commodities which are produced at home and yield utility to the family.
Answer:
a. $404,000
b. $60,000
Explanation:
a. The computation of cash received is shown below:
= Sales for the current year + increased in accounts receivable during the year
= $375,000 + $29,000
= $404,000
The increase in accounts receivable show the predicted cash which will be received in near by future. So, it is added in the computation part.
Hence, the amount of cash received from customers is $404,000
b. Computation of cash payment for income tax is shown below:
= Income tax for the current year + decrease in income tax payable during the year
= $39,000 + $21,000
= $60,000
Both transactions should be added to know the accurate figure of income tax payment made in cash.
Hence, the cash payments for income tax is $60,000
Answer:
(a)
Dr Investment in Gordon Corp. 230,400
Cr Cash 230,400
( to record investment in Gordon Corp.; calculated as 10 x 23,000 + 400)
(b)
Dr Investment in Gordon Corp. 18,400
Cr Share of Gordon Corp earning 18,400
( to record share of profit in Gordon Corp, calculated as % of Gordon Corp share owned x Gordon Corp's earnings = 23,000/100,000 x 80,000)
(c)
Dr Cash 45,000
Cr Investment in Gordon Corp. 45,000
( Record dividend receipt from Gordon Corp)
Explanation:
Further explanation, as Morgan Co. acquires 23% of Gordon Corp. ( 23,000/100,000); equity method should be applied.
Answer: Barbara should have left a note for the other driver and Barbara’s action is an example of a hit and run.
Explanation:
Hit and run occurs when there's a traffic collision with another car or human being and the person who caused the collision doesn't stop and therefore doesn't provide necessary information details which are required by law to the other person affected.
With regards to the scenario discussed in the question, Barbara should have left a note for the other driver and Barbara’s action is an example of a hit and run.
She should have left a note which will consist of details of how she can be reached in case there's further damage on the car.
