Help pls need for a test!

An increase of $100,000 in inventory would result in a(n) Increase in bonds payable. Decrease of net cash flow. Decrease in mark

ki77a [65]

Answer:

Decrease of net cash flow

Explanation:

Underthe indirect method, we calculate the cash flow based on the change in working capital:

The inventory, which is an asset will be purchased with cash or cash equivalent. Therefore, an increase on inventory produce a decrease of net cash flow.

If the inventory is purchased on account then, It will increase account payable, which represent an increase on the net cash flow. This generates a net effect of zero, 100,000 for account payable - 100,000 for inventory.

Which is what happens when purchase on account are made.

However, here we are asked for an increase on inventory only. We should simply state that this will represent a decrease in the cash flow for 100,000.

5 0

3 years ago

Roslyn has decided to purchase a $14,000 car. She plans on putting $2000 down toward the purchase, and financing the rest at a 6

Svetllana [295]

using the payment function, a $12,000 loan for 4 years at a rate of 6%, your payment would be $281.82

6 0

3 years ago

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On July 31 of the current year, Dome Co. issued $1,000,000 of 10%, 15-year bonds at par and used a portion of the proceeds to c

vredina [299]

What grade are you in

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3 years ago

A _ is used to apply for jobs or even to collage

Andrews [41]

Answer: application

Explanation:

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3 years ago

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Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms,

kotykmax [81]

Answer:

Cost of Goods Manufactured 356,700

Net Profit before Income Tax= 566,350

Explanation:

Waterways Corporation

Cost of Goods Manufactured Schedule

Raw materials Inventory - October 31 41,000

Add Raw Materials Purchases 186,500

Less Raw Materials Inventory - November 30 53,000

Raw Materials Used = 174,500

Direct labor 44,000

Factory Overhead: 145,200

Indirect labor 45,000

Factory Utilities 10,500

Factory Supplies Used 16,300

Depreciation-Factory Equipment 17,500

Property Tax on Factory 5,500

Rent - Factory Equipment 45,000

Repairs - Factory Equipment 5,400

Total Manufacturing Costs 363,700

Add Work in Process Inventory - November 30 44,000

Cost of Goods Available for Manufacture 407,700

Less Work in Process Inventory - October 31 51,000

Cost of Goods Manufactured 356,700

Waterways Corporation

Cost of Goods Sold Schedule

Cost of Goods Manufactured 356,700

Add Finished Goods Inventory - November 30 71,800

Cost of Goods Available for Sale 428,500

Less Finished Goods Inventory - October 31 73,500

Cost Of Goods Sold 355,000

Waterways Corporation

Income Statement for the month of November

Sales 1,425,000

Less Cost of Goods Sold 355,000

Gross Profit 1070,000

Less Operating expenses : 503650

Office Supplies Expenses 71,000

Advertising Expense 52,000

Salaries 335,000

Depreciation-Office Equipment 2,900

Sales Commissions 42,750

Net Profit before Income Tax= 566350

( here the salaries are treated as office salaries not factory salaries)

Waterways Corporation

Balance Sheet for the month of November

Assets

Cash 255,000

Accounts Receivable $290,000

Prepaid Expenses 42,500

3 0

3 years ago