1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Assume Intel Corporation (INTC) and Texas Instruments (TXN) report the following information. Intel Corp Texas Instruments ($ mi
VLD [36.1K]

Answer:

2015 FAT= 4,168323393

2016 FAT= 3,87219893

Explanation:

2015 2016

sales plant 34209 38826

propierty 15768 17111

net sales  12580 13392

propierty net 3018 3899

 

​FAT=Net Sales​/Average Fixed Assets  

 

2015 FAT=12580/3018  

2018 FAT=13392/(3899-3018)  

 

2015 FAT= 4,168323393

2016 FAT= 3,87219893

7 0
3 years ago
4. Suppose you have two credit cards. The first has a balance of $410 and a credit limit of $1,000. The second has a balance of
Morgarella [4.7K]
Number 4 is a number 5 is d
4 0
3 years ago
Read 2 more answers
Here are data on two stocks, both of which have discount rates of 8%: Stock A Stock B Return on equity 8 % 5 % Earnings per shar
AfilCa [17]

Answer:

Please sew solution below

Explanation:

a. What are the dividend payout ratios for each firm

Dividend payout ratio = Dividend / EPS

• Payout ratio stock A = $1.30 / $2.6 = 0.5= 50%

• Payout ratio stock B = $1.3 / $1.8 = 0.72222 = 72.22%

b. What are the expected dividend growth rates for each stock.

Growth rate = ROE × (1 - dividend payout ratio)

•Growth rate stock A = 0.08 × (1 - 50%) = 0.04 = 4%

• Growth rate stock B = 0.05 × (1 - 72.22%) = 0.01389 = 1.39%

c. What is the proper stock price for each firm

• Stock A

Price = D1 / (Re - g)

D1= $1.30 * (1 + 0.04)

= 1.352

Stock B

Price = D1 / (Re - g)

D1= $1.30 * (1 + 0.013)

= 1.3169

Therefore,

• Stock A's proper price = $1.352 / (0.08 - 0.04) = $33.8

• Stock B's proper price = $1.3169 / ($0.08 - $0.013) = $19.66

6 0
3 years ago
While stocking the shelves with a new soup, the store manager notes a difference in price between the 16-ounce can and the 32-ou
asambeis [7]

Answer:

The correct answer is: Cost-Plus Pricing Strategy.

Explanation:

To begin with, a ''Cost-Plus'' is the name that a pricing strategy receives in the field of marketing and business that mainly focuses on the pricing of a product by the cost of it plus a certain porcentage of benefit, considering this last one as the benefit margin. Moreover, this type of pricing strategy is one of the most common ones in the field, typically the businesses use this type of pricing strategy due to the fact that it is easy to establish and it does not consider complex terms.

Secondly, in this case where the manager notices such a difference in the prices of the two cans is due to the fact that the manufacturer put less commodities and less effort in the can of 16-ounce rather than in the other can of 32-ounce where there is more soup and therefore there is more cost in that can, establishing that a higher price must put in that one.

5 0
3 years ago
There is no evidence that giving (blank) to your children makes them hyperactive.
tatiyna
I think its Sugar because that usually what people are talking about when dealing with children.
6 0
3 years ago
Read 2 more answers
Other questions:
  • Hillary has a new product idea that aligns well with her company's current organizational resources. She puts together a present
    13·1 answer
  • 4. Problems and Applications Q4 A price change causes the quantity demanded of a good to increase by 12%, while the total revenu
    9·1 answer
  • Which of the following weakens the government control in the marketplace?
    10·2 answers
  • Change champions are more likely to make mistakes:_________.
    5·1 answer
  • The Wisco Company has a process cost system. All materials are placed in process when the process is first begun. At the beginni
    9·1 answer
  • Which of the following is not an example of a SMART long-term education or
    15·1 answer
  • The petty cash fund has a current balance of​ $200. based on activity in the​ fund, it is determined that the balance needs to b
    5·2 answers
  • A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in out
    12·1 answer
  • The relationship between the elasticity of product demand and the elasticity of demand for labor employed in its production is s
    8·1 answer
  • Which approach to research is based on observing people in their own homes or​ communities?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!