All categories

3 years ago

Preparation of a statement of cash flows involves five steps:

Business

1 answer:

adelina 88 [10]3 years ago

4 0

Answer:

Preparation of a statement of cash flows involves five steps

1. Compute net cash provided or used by operating activities.

This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.

2. Compute net cash provided or used by investing activities.

This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.

3. Compute net cash provided or used by financing activities.

This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.

4. Compute the net increase or decrease in cash

This is the section where the cash-flow from operating, investing and financing activities is been balanced.

5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.

After the cash-flow from operating, investing and financing activities is been calculated, Then, this section is also computed to derive the Closing/Ending cash balance

You might be interested in

The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to $2.50 a gallon. The price of crude oil dro

Dvinal [7]

Answer: C. lower the cost of producing gasoline and increase the supply of gasoline

Explanation:

Gasoline is derived from the distillation of crude oil which means that Crude oil is the main raw material in the production of gasoline. This means that if crude oil sees a reduction in price, input costs for gasoline will decrease as well.

Producers of gasoline will take advantage of this to buy more crude oil and therefore process and make more gasoline which will increase the supply of gasoline in the market and reduce its price.

8 0

4 years ago

Range Economies of Scale Constant Returns to Scale Diseconomies of Scale More than 400 bikes per month Fewer than 300 bikes per

RideAnS [48]

Diseconomies of scale result from monthly bike sales of more than 400.

Economies of scale = fewer than 300 bikes each month

Monthly bike sales of between 300 and 400 bikes = Constant Returns to Scale.

<h3>What is Diseconomies of scale?</h3>

Diseconomies of scale are the cost disadvantages that economic actors experience as a result of growing their organizational size or their output.
Which leads to higher per-unit costs for the production of products and services.
Economies of scale are opposed by the idea of diseconomies of scale.

<h3>What is Economies of scale ?</h3>

The cost advantages that businesses experience as a result of their size of operation are known as economies of scale.
And they are often quantified by the amount of output generated in a given amount of time.
Scale can be increased when the cost per unit of output decreases.

<h3>What is Constant Returns to Scale?</h3>

When a company's inputs, such as capital and labor, expand at the same rate as its outputs, or the value of their goods, this is known as a constant return to scale in economics.
Returns to scale are measurements over a long time.

Learn more about Constant Returns to Scale here:

brainly.com/question/17326273

#SPJ4

7 0

2 years ago

At the beginning of the year, Vaughn Manufacturing estimates annual overhead costs to be $2400000 and that 300000 machine hours

anastassius [24]

Answer:

The amount of overhead applied during the year is $2,680,000

Explanation:

For computing the amount of overhead applied, the following computations are required which is shown below:

1. Compute the overhead cost per machine hour:

The formula is shown below:

= Annual overhead cost ÷ machine hours

= $2,400,000 ÷ 300,000

= $8

Now the amount of overhead applied equals to

= Actual machine-hours × overhead cost per machine hour

= 335,000 hours × $8

= $2,680,000

7 0

3 years ago

In 2007, the economy slipped in a recession that many called the worst since the Great Depression. This caused people to experie

Elis [28]

Answer:

an increase in equilibrium price and an indeterminate effect on equilibrium quantity.

Explanation:

An inferior good is a good whose demand increases when income falls and reduces when income rises.

If ramen is an inferior good, when income falls its demand would increase. This would lead to a rise in quantity and price.

An increase in the price of wheat would increase the cost of production of ramen. As a result, the supply of ramen would fall. Price would increase and supply would fall.

The combined effect would be an increase in equilibrium price but an indeterminate effect on equilibrium quantity.

I hope my answer helps you

3 0

3 years ago

___________________ occurs when meanings are misinterpreted due to intentional or unintentional problems during the sending or r

Ksivusya [100]

Answer:

Message distortion.

Explanation:

This term is explained to be a change in signal or is said to occur when message sent by one communicator is misinterpreted by the said receiver. In some cases processes shows that in this study form, their functioning is affected by certain of variables ranging from the objects or events being perceived, the environment in which perception occurs, and the individual doing the perceiving.

In some cases, misinterpretation is seen to play roles that form distortion in messages; thereby hampering the communication process. Also some environmental factors posses constraints of lights, sounds, smell, objects, social, political, cultural, technological environments which govern the human behaviour and stimulate him into action affecting communication too.

6 0

4 years ago

Read 2 more answers