Answer:
The inventory would be increased by $55,283 and the profit has been decreased by the same amount.
Explanation:
The reason is that the closing inventory has been increased by the difference of the correct and incorrect amount which is:
Closing inventory difference = $225,513 - $170,230 = $55,283
This will increase the closing inventory in the balance sheet and the increase in the closing inventory will decrease the cost of goods sold. The lower the cost of goods sold the greater is the profit.
Answer:
D) Quantity sold rose while the effect on price is ambiguous.
Explanation:
Two separate things happened here;
- Change in consumer habits have shifted the the demand curve to the right, increasing the quantity demanded at every price level.
- Better technology and lower costs have also shifted the supply curve to the right, increasing the quantity supplied at every price level.
One thing is certain, the quantity demanded and supplied increased, so the total quantity sold definitely increased. The price issue is not certain because you would need additional information about which shift was larger, the shift of the supply curve or the demand curve.
Bartering is done without C) money!
Recall how pioneers traded with each other goods.
Answer:
$32,100
Explanation:
We know that
Total assets = Total liabilities + Shareholder equity
Where,
Total assets = Cash + supplies + equipment
= $30,000 + $600 + $10,000
= $40,600
And, the total liabilities would be
= Account payable
= $8,500
So, the amount of equity would be
= $40,600 - $8,500
= $32,100
Answer:
Of course you should be concerned about negative cash outflows resulting from investing or financing activities.
Negative cash outflows for investing activities means that the company purchased more fixed assets or securities this year than the ones that were sold. E.g. the company purchased new equipment for $100,000. Investing activities usually require large amounts of cash.
If financing activities yield negative numbers, it means that either the company paid too much in dividends, or they paid long term debts (e.g. retired bonds or paid back bank loans), but at the same time did not raise enough capital to offset them.
When you are analyzing the finances of a company, cash is king. A company might be very profitable, but it will not survive it its cash flows are negative. If there are enough positive cash flows from operating activities to offset these other cash outflows, then the company should be OK. But if operating cash flows cannot offset them, then the company should be concerned.
