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STALIN [3.7K]
3 years ago
5

On January 1, Year 2, Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowanc

e for Doubtful Accounts account. During Year 2, Grande provided $104,000 of service on account. The company collected $97,000 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account. Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:
Business
1 answer:
Sonja [21]3 years ago
8 0

Answer:

Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

= $97,000.

Explanation:

a) Data and Calculations:

Accounts Receivable balance on January 1, Year 2 = $16,000

Allowance for Doubtful Accounts balance on January 1, Year 2 = $0

Service Revenue on credit during Year 2 = $104,000

Cash collected from Accounts Receivable = $97,000

Accounts Receivable balance on December 31, Year 2 = $23,000

Allowance for Doubtful Accounts balance on December 31, Year 2 = $2,080 ($104,000 * 2%)

Net Accounts Receivable balance on December 31, Year 2 = $20,920 ($23,000 - $2,080)

b) The $97,000 is the actual cash inflow received from customers during Year 2.  It increases the cash inflows and forms part of the operating activities section of the Statement of Cash Flows for Year 2 under the direct method.

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2. Realized income is also known as ____. a) gross pay. b) net income. c) real income. d) descretionary income. . 3) You are pai
iris [78.8K]

Answer:

a) gross pay

c) $1,496.34.

Explanation:

The realized income is the amount you actually received and it is taxable. According to this, the answer is gross pay as it is the money you earn before taxes are deducted.

-Realized income:

$12.75*40= 510*4 = $2,040

FICA (7.65%)= $156,06

Federal withholding (12%)= $244,8

state withholding (7%)= $142,8

$2,040-$156,06-$244,8-$142,8= $1,496.34

6 0
3 years ago
rankings as well as word of mouth from satisfied customers drive additional sales for automotive companies. however, because thi
Lera25 [3.4K]

So, A has to apply for Sales Orientation Strategy.

All a deals situated with Sales Orientation is one in which an organization concentrates it's showcasing endeavors on selling the item that they produce. This procedure is viable for organizations that sell 'unsought' merchandise, for example, internment plots and disaster protection(life insurance), and yet can be hazardous for other people.

So, If A company start focus 100% on their marketing strategy they definitely achieve more and more customer for their Automotive company and it creates the best Ranking and good or excellent Word-of-Mouth.

Word-of-Mouth showcasing is the point at which a customer's advantage in an organization's item or administration is reflected in their day-to-day dialogues.

Rankings in Web optimization allude to a site's situation on the web crawler results page.

To learn more about Sales Orientation.

brainly.com/question/28360584

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7 0
2 years ago
Helena is given a voucher that can be spent only on educational expenses. She has a budget constraint with educational expenses
ss7ja [257]

Answer: Helena will most likely end up spending some more money on everything else after receiving the voucher.

Explanation:

The budget constraint is used to shows the combinations of two goods which can be afforded by a consumer. A normal good is a good or product that when the income of the person rises,the demand for the product will also increase.

Based on the above information on the question, the correct answer is "Helena will most likely end up spending some more money on everything else after receiving the voucher".

This is because the voucher she was given can be spent only on educational expenses and her budget constraints comprises of educational expenses and everything else which is made up of normal goods. This means she'll still needs to get the normal goods later.

5 0
3 years ago
One stores information is listed in the table below. Sales return $700 rent expenses $1,288 sales discount $950 depreciation exp
Dvinal [7]

Sales Return -$700                                Cost of merchandise sold- $7600

Rent Expenses- $1288                           Gross sales- $20900

Sales Discount- $950                             Advertising Expense- $1650

Depreciation Expense- $600                 Salary expense- $2900

Heat expense- $900

  • Net sales occurs only when sales returns, allowances or any discounts is subtracted from company's gross sales.

   A) Net sales = Gross sales- return- sales discount

       Net Sales= $20900- $700- $950 = $19,250

  • Company's revenue or sales subtract cost of goods sold or direct expenses.

   B) Gross profit=  Net Sales- Cost of merchandise sold

        Gross profit= $19,250- $7600 =$11,650

  • Expenses incure during normal business operations like rent, insurance etc.

    C) Total operating expenses= Rent+ Depreciation+ Heat+ Advertising+    Salary expense

Total operating expenses= $1288+ $600+ $1650+ $2900+ $900= $7,338

  • The amount which comes after deducting cost, allowances & taxes.

    D) Net income= Gross profit- total operating expenses

         Net income= $11,650- $7338= $4,312

Hence, net sales is $19250, gross profit is $11650, total operating expenses is $7338, net income is $4312

Learn more about this here-

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3 0
2 years ago
On January​ 4, 2019,​ Margaret's Cafe acquired equipment for . The estimated life of the equipment is 4 years or​ 42,500 hours.
emmainna [20.7K]

Answer: $42300

Explanation:

Here is the complete question:

On January​ 4, 2019,​ Margaret's Cafe acquired equipment for

$147,500. The estimated life of the equipment is 4 years or​ 42,500 hours. The estimated residual value is $20,000. What is the depreciation for​ 2019, if​ Margaret's Cafe uses the asset 14,100 hours and uses the units−of−production method of​ depreciation?

Depreciation has to do with the reduction in the value of an asset due to the fact that such asset is being used.

The depreciation for this question will be calculated as:

= [(Cost of Equipment - Residual Value) / Estimated life of equipment] × Actual Hours used

= [(147,500 - 20,000)/42,500] × 14,100 hours

= [127,500/42,500] × 14,100

= 3 × 14100

= $42,300

6 0
2 years ago
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