Answer:
The $286,900 is the net cash which is provided by the operating activities using the indirect method.
Explanation:
The computation of net cash provided by operating activities using the indirect method is shown below:
= Net income - decrease in accounts receivables - increase in prepaid expenses - increase in inventories
= $268,900 + $80,000 - $28,500 - $33,500
= $286,900
The decrease in accounts receivable impact the cash balance in a positive manner. So, it is added whereas, the increase in prepaid expenses and the increase in inventories have a negative impact on cash balance that's why it is deducted.
These transactions have an inflow and outflow of cash. That's why the adjustment is done accordingly
Hence, the $286,900 is the net cash which is provided by the operating activities using the indirect method.
The Modified Accelerated Cost Recovery System (MACRS) is used for tax purposes.
<h3>What is depreciation?</h3>
Depreciation refers to the devaluation in the value of the tangible assets after a particular period of time. When the depreciation value of the assets becomes zero or negative. It becomes outdated or obsolete.
Modified Accelerated Cost Recovery System is the system introduced by the United States which is the tax depreciation system used to estimate the value of the assets depreciated.
Initially, it was introduced to attract the investors to invest in the depreciating assets. the benefit of this system is that it gets higher tax exemptions.
Learn more about devaluation here:
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Answer:
COGS= $807,500
Explanation:
<u>First, we need to calculate the unitary cost for direct material, direct labor, and manufacturing overhead:</u>
direct material= 2*2= $4
direct labor=2.7*20= $54
overhead= 2.7*10= $27
Total unitary cost= $85
<u>Now, the cost of goods sold:</u>
COGS= 85*9,500= $807,500
Answer:
d. use of product
Explanation:
A market segment can be described as a group of people that are put together as a unique segment for marketing purposes because of the similarity in their attributes.
Market are usually segmented based on personality, needs, values, use of product, and lifestyles of the consumers being targeted.
Therefore, International Paper segments its market based on use of product,
Answer:
Equivalent units for conversion cost is 10,790 units
Explanation:
Completed and Transferred (1,030 + 10,000 - 400) x 100 % = 10,630
Ending Work In Process 400 x 40% = 160
Total equivalent units for conversion cost = 10,790
