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3 years ago

Classifying items on the indirect statement of cash flows [10 min]

Business

1 answer:

marin [14]3 years ago

7 0

Answer:

a. Increase in accounts payable

Identification: O+

b. Payment of dividends

Identification: F-

c. Decrease in accrued liabilities

Identification: O-

d. Issuance of common stock

Identification: F+

e. Gain on sale of building

Identification: O-

f. Loss on sale of land

Identification: O+

g. Depreciation expense

Identification: O+

h. Increase in inventory

Identification: O-

i. Decrease in accounts receivable

Identification: O+

j. Purchase of equipment

Identification: I-

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Suppose Juan has three job offers. He can earn $50,000 in Atlanta, GA; $70,000 in Boston, MA; or $100,000 in San Francisco, CA.

Pavlova-9 [17]

Answer:

To maximize the purchasing power of his income, Juand should accept the offert of Atlanta, GA.

Explanation:

To answer this question you need the comparative costs of living in each of the trhee cities.

In a similar question, you can find the cost of iiving indexes for Atlanta, Boston, and San Francisco. Here is the table:

Cost of living index

City (100 = U.S. City average)

Atlanta, GA 98

Boston, MA 160

San Francisco, CA 245

Thus, to determine which offer Juan should accept to maximize the purchasing power of his income, divide each income by the cost of living index.

Atlanta, GA:

$50,000/98 = $510.20

Boston, MA

$70,000/160 = $437.50

San Francisco, CA

$100,000/245 = $408.16

Rank the adjusted earnings in decreasing order:

$510.20 > $437.50 > $407.16

Hence, in spite of the nominal earnings in Atlanta are the lowest, the higher cost of living indexes of the other cities, make that the offer from Atlanta the best one.

5 0

4 years ago

On October 1, 2018, Hill Company borrows $20,000 from a local bank. The note has an interest rate of 6% and is due in one year.

Alex Ar [27]

Answer:

Amount of interest = $ 300

Explanation:

Given:

Total number of month = 3 months (Oct, Nov and Dec)

Amount borrow = $20,000

Interest rate = 6%

Find:

Amount of interest

Computation:

Amount of interest = $20,000 x 6% x 3 months / 12 months

Amount of interest = $ 300

8 0

3 years ago

Q 10.25: Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1st. Givens Brick Company signs a $600,000,

Shtirlitz [24]

Answer:

Entry is given below

Explanation:

As Givens brick company is paying off the liability of note payable and the interest amount therefore, it will be debited as it is a decrease in liability. Cash will be credited as it is our asset and its decreasing.

Entry DEBIT CREDIT

Notes payable $600,000

Interest $36,000(w)

Cash $636,000

Working

Interest = $600,000 x 8% x9/12

Interest = $36,000

7 0

3 years ago

5. People-based services are

ehidna [41]

Answer:

decreasing

Explanation:

because more and more machines are made to do work

4 0

3 years ago

Supply costs at Lattea Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,665 $28,579 April 11,461

mario62 [17]

Answer:

$0.48 per client-visit; $22,856 per month

Explanation:

Where,

y2 is the total cost at highest level of activity; y1 is the total cost at lowest level of activity; x2 are the number of units/labor hours etc. at highest level of activity; and x1 are the number of units/labor hours etc. at lowest level of activity

Variable Cost per Unit 

= (28,904 -28,227) / (12,600-11,199)

= $0.48

 Total Fixed Cost 

= y2 ? bx2

= 28,904 - $0.48 * 12600

= $22,856.00

3 0

3 years ago

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