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2 years ago

Why is looking at cash flow an important step in a good financial plan?

1 answer:

8 0

Cash flow refers to the constant movement of money, both where and how much you're spending as well as how much you're earning in return. Looking at cash flow is an important step in a good financial plan because it can help you determine places where you need to scale back on spending. For example, if you buy a $2 cookie every day, it won't feel like you're spending a lot of money. But after a month, you will have spent $60 on cookies that could have gone to something else, like car repairments. By being aware of this spending, you can save more money and have better control of spending habits.

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On December 31, Year 4, Deal, Inc., failed to accrue the December Year 4 sales salaries that were payable on January 6, Year 5.

Lesechka [4]

Answer:

Deal, Inc. working capital will be overstated while there will be a nil net effect on cash flows from operating activities.

Explanation:

The working capital of an entity is the difference between the entity's current asset and current liabilities at a given time or period. The operating activities of the cash flow statement is where the net income and changes in current liabilities are considered in the cash flow statement.

As such, when a company fails to accrue for sales salaries On December 31, Year 4, and the salaries are payable on January 6, Year 5, the current liabilities of the company would be understated and as such, it's working capital will be overstated.

Also, the net income will be understated as the corresponding entry in the accrual for sales salaries is an expense. Also, the ending balance of accrued sales salaries will be understated result in a nil effect on the operating activities of the cash flow.

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3 years ago

Gerald took a break while two of his coworkers completed a task that all three of them volunteered for. This shows a lack of ___

Valentin [98]

This shows a lack of responsibility. This is because he has a job to do and he is a just taking a break and being lazy. I don’t know if this is right. But, I hope so. Hope this helped you!!

5 0

3 years ago

On december 1 victoria company signed a 90 day 4% note payable with a face value of 15,000 what amount of interest expense is ac

xz_007 [3.2K]

Interest Expense

The cost of borrowing money is referred to as interest expenditure. Interest expenditure in the income statement might represent the cost of borrowing money from banks, bond investors, and other sources.

Main Content

$50

A note payable is a type of financial instrument. In this case, the note payable is due in three months. So, after one month, we will record the following interest on the note payable:

15000*4%*(3/12) = 150

For 1 month = 150/3 = 50

The note payable was sold on December 1, and we must calculate its interest on December 31, which is one month later. As a result, we will divide total interest 150 by 3. This will provide us with one month's interest.

To learn more about Interest Expense

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1 year ago

alvin Tucker is in the process of launching an educational services firm. He plans to incorporate the firm. Because the firm wil

Sever21 [200]

Answer:

________________________________

alvin Tucker is in the process of launching an educational services firm. He plans to incorporate the firm. Because the firm will be incorporated, Calvin is legally required to have a board of directors

________________________________

The role of Directors on a board

representative of the company's shareholder to oversee the management of the company.

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1 year ago

Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apar

Ivahew [28]

The determination of the transaction price for this contract for Nair Corp. is as follows:

Completed by Probability:

Date Probability Bonus/Penalty Outcome

August 1, 2015 70% $150,000 $105,000 ($150,000 x 70%)

August 8, 2015 20% $50,000 -10,000

August 15, 2015 5% $50,000 -2,500

After August 15, 2015 5% $50,000 -2,500

Total expected value of performance bonus = $135,000

Contract value = $1,000,000

Total transaction price = $1,135,000 ($1,000,000 + $135,000).

<h3>What is a transaction price?</h3>

A transaction price is the amount of consideration expected to be paid or received for the exchange of goods or services.

A transaction price can vary based on timing or performance factors.

<h3>Data and Calculations:</h3>

Contract value = $1,000,000

Performance bonus = $150,000

Penalty per week in performance bonus = $50,000

The total transaction price is $1,135,000.

Learn more about contract transaction prices at brainly.com/question/984979

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1 year ago