Answer:
The net Cash collections from customers were $85683.
Explanation:
The direct method for calculating net cash flow involves deducting from cash sales only operating expenses that needed cash.
Cash collections from customers by Washington company are:
Accounts Receivable, January 1 + Sales - Accounts Receivable, December 31
=$16,099 + $76,821 - $7,237
=$92,920-$7,237
=$85683
The net Cash collections from customers were $85683.
Answer:
$432,000 Setting up equipment ⇒ based on setup hours
$1,440,000 Other overhead ⇒ based on oven hours
product units produced setup hours oven hours
Fudge 8,000 6,400 1,600
Cookies 445,000 1,600 8,000
1) Activity rate:
- a) setup hours = total setup costs / total setup hours = $432,000 / 8,000 hours = $54 per setup hour
- b) oven hours = total other overhead costs / total oven hours = $1,440,000 / 9,600 hours = $150 per oven hour
2) total overhead assigned to fudge = (6,400 setup hours x $54 per setup hour) + (1,600 oven hours x $150 per oven hour) = $345,600 + $240,000 = $585,600
Answer:
b. Continue operating as the firm is covering all the variable costs and some of the fixed costs
Explanation:
A firm should shutdown operations if its price is less than average variable cost.
The price the firm sells is $15
Average variable cost is $10.
Price is greater than average variable cost in excess of $5.
The $5 covers some of the average fixed cost.
I hope my answer helps you
Answer:
As an "entrepreneur" you can make money while doing things you like.
Explanation:
