If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units
1 answer:
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Answer:
Answer is explained in the explanation section below.
Explanation:
Part A: In part a, we are required to show the effects on the financial statements using horizontal statements model.
For that, we need to tabulate the entries properly. So, it cannot be done be done here in the typing section. So, I m putting it into the attachments. Please refer to the attachment for the part a solution.
Part B:
Reason of the difference:
Cash revenue is $8650 but cash flow amount is $9600
Total operating expense incurred is $3350 but the amount paid only $2700
It will create $650 difference income statement and cash flow.
These activities are reasons for the differences between cash flow from the operating activity and net income.
