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astra-53 [7]
3 years ago
6

When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts

receivable is subtracted from net income. Group startsTrue or False
Business
1 answer:
PSYCHO15rus [73]3 years ago
7 0

Answer:

True

Explanation:

statement of cash flows can be regarded as financial statement which gives analysis of how cash as well as cash equivalent is affected by any changes in balance sheet accounts.

The indirect method of statement of cash flows begins with loss or the net income as well as the substraction of values from non cash revenue which result in case flow as a result of operating activities.

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On February 1, 2020, Nash's Contractors agreed to construct a building at a contract price of $5,700,000. Nash's estimated total
Romashka-Z-Leto [24]

Answer:

Nash's Contractor

Gross profit that should be recorded for 2020, 2021, and 2022:

Percentage -of completion                     Completed-contract

2020 $___667,500_____                      2020 $___0_____

2021 $____361,395____                       2021 $____0____

2022 $____121,105____                       2022 $____1,150,000____

Explanation:

a) Data and Calculations:

Contract price = $5,700,000

Estimated construction costs = $3,920,000

Project completion date = 2022

Costs and Billings:

                                                     2020            2021            2022

Total costs incurred to date  $1,470,000 $2,580,000 $4,550,000

Estimated costs to complete 2,450,000     1,720,000     -0-

Customer billings to date       2,100,000    3,920,000  5,500,000

Collections to date                 1,900,000     3,400,000  5,400,000

Percentage of completion:

2020:

Revenue  =        $2,137,500 ($1,470,000/$3,920,000 * $5,700,000)

Cost incurred =   1,470,000

Gross profit =     $667,500

2021:

Revenue =         $1,471,395 ($1,110,000/$4,300,000 * $5,700,000)

Cost incurred =   1,110,000

Gross profit =     $361,395

2022:

Revenue =      $2,091,105 ($5,700,000 - $2,137,500 - $1,471,395)

Cost incurred   1,970,000

Gross profit =     $121,105

Completed contract

2022: Revenue = $5,700,000

Total costs =          4,550,000

Gross profit  =        $1,150,000

7 0
3 years ago
ABC Corporation offered a four-for-one stock split. The number of outstanding shares before the split was 15,000, and the par va
svetoff [14.1K]

<u>Answer:</u> D. 60,000 shares at $5 per share

<u>Explanation:</u>

The company has 15,000 shares and offers to split the stock four-for-one. It means that the there will be four times the number of shares but the total value of the shares, before and after the split, would remain the same.

The total value of shares = $15,000 x 20 = $300,000

Since the stock split is 4-for-1, the number of shares would be = 15000 x 4

= 60,000 shares

Therefore the total value of shares divided by the number of shares will give us the par value of the shares:

300,000 / 60,000 = $5

8 0
2 years ago
Read 2 more answers
Which of the following is a business organization owned by a group of people for their mutual benefit?
slava [35]
 A cooperative. <span>A </span>cooperative--<span>a business owned by a group of people to meet mutual (economic, social and cultural needs and aspirations).</span>
4 0
2 years ago
Read 2 more answers
2. What are mortgage brokers?
kondor19780726 [428]
A mortgage broker acts as a middleman between you and potential lenders. The broker's job is to compare mortgage lenders on your behalf and find interest rates that fit your needs. ... Mortgage brokers are licensed
7 0
2 years ago
( ____/10) Economic Growth a. Define GDP, identify what is not included, define the four components, and give an example of each
Harlamova29_29 [7]

Answer: Gross domestic product (GDP) is the monetary value of the market value of all final goods and services produced in a country at a specific time period.

Explanation:

Economic growth is the increase in the total output of goods and services in the economy.

Gross domestic product (GDP) is the monetary value of the market value of all final goods and services produced in a country at a specific time period. The four components of the gross domestic product (GDP) are personal consumption, business investment, government spending, and net exports (difference between export and import)

GDP = C + I + G + (X - M).

where C = consumption

I = investment

G = government expenditure

(X - M) = Net Export

The items not included in the are

1. Sales of goods produced outside the domestic borders of a country.

2. Sales of used goods.

3. Black market i.e. the illegal sales of goods and services.

4. Intermediate goods.

Nominal GDP is measure of the monetary value of all the final goods and services that are produced within a country at current market prices while Real GDP is the measure of a country’s output using the value of its goods and services, investments, government spending and exports. Real GDP is the nominal GDP and adjustment in inflation or deflation.

For example, if nominal GDP is $120,000 and the deflator is 1.4. Calculate Real GDP.

Real GDP = Nominal GDP / Deflator

= 120000 / 1.4

= $ 85714.29

7 0
3 years ago
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