3:Leo's rent is due a few days before he expects to receive his paycheck from work. He takes out a

Earned net income of $65,000 after deducting depreciation of $8,000 and all other expenses. Current assets decreased by $7,000,

Drupady [299]

Answer:

Cash provided by operating activities is 89.000

Explanation:

The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Notice the amounts of any decreases are in parentheses.

Net income 65.000

Adjustment to reconcile the net income to cash

+ Depreciation expense 8.000

+ Current assets decrease 7.000

+ Current liabilities increase 9.000

Net cash 89.000

7 0

3 years ago

Explain why different communication methods are used in the business environment?

Verizon [17]

Answer:

Different communication methods are used in different circumstances because sometimes a certain method will be more effective in terms of cost, time and impact, and sometimes it will be more appropriate.

Explanation:

4 0

2 years ago

Whispering Company sells goods that cost $301,000 to Ricard Company for $402,000 on January 2, 2020. The sales price includes an

Jobisdone [24]

Answer:

The amount of revenue to be recognized at 31st March is $383500

Explanation:

The revenue amount that should be recognized in the income statement as at March 31,2020 is the sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.

Hence, the amount of revenue as at 31st March is calculated thus:

Sales price $365000

Installation fee for 3 months(3/6*$37000) $18500

Total revenue as at 31st March $ 383,500

The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months

7 0

3 years ago

A partial list of Waterways' accounts and their balances for the month of November 2016 follows:

lesya [120]

Answer:

Total current assets = $697,750

Explanation:

The partial balance sheet is as follows:

Waterways Corporation

Balance Sheet (Partial)

For the month of November 2016

Details $ $ 

Current Assets

Cash 260,000

Accounts Receivable 275,000

Finished Goods Inventory, November 68,800

Raw Materials Inventory, November 52,700

Prepaid Expenses 41,250

Total current assets 697,750

Note:

Cash is the most liquid of assets.

Accounts receivable which should be collected within 30 to 60 days are less liquid than cash, but more liquid than inventory.

Finished Goods Inventory which is expected to be sold and converted to cash within one year, and Raw Materials Inventory which is expected to be converted to finished good within one year are more liquid than Prepaid expense.

Therefore, the least liquid among current assets’ item above is the Prepaid Expense as it is cash paid for services not yet received..

4 0

2 years ago

Describe some of the possible problems a retailer could experience when attempting to sell online internationally.

Bogdan [553]

Answer:

In today’s digital market space consumers and businesses interact, sell, and buy beyond their local borders. With greater access to foreign markets, many U.S companies are looking to expand overseas and to sell internationally.

Global retail sales, including both in-store and online purchases, surpassed $22 trillion in 2014, according to recent figures from eMarketer. The marketing research firm also predicts a 5.5 % increase in overall international retail sales to $28.3 trillion by 2018.

Explanation:

hope it helps

7 0

2 years ago