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3 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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Sam's business will cost $49,500 to set up and run for the first year. Sam then expects an annual operational expense total of $

BabaBlast [244]

Answer:

Within 2 years

Explanation:

1st year of Sam's business:

Operational expense = $30,500

Profit = $45,000

Business set up costs = $49,500

Overall business profit (Loss) = $(4,500)

2nd Year of Sam's business:

Since the profit will be increased by 5.5%, the new profit after operational expenses will be $45,000 + $(45,000 x 5.5%) = $47,475

Therefore, the overall profit = Last year's loss + This year's profit = $(-4,500+47,475) = $42,975

Therefore, he can achieve the overall profit within 2 years' of operation.

4 0

2 years ago

Because of the legal protection for intellectual property, such as patents, a firm has a better chance of recouping the costs of

pochemuha

Answer:

D. Technologically positive research

Explanation:

Technology positive research can be said to be a scientific method which explain elaborately on the approach that is seen to deal with research founded on the premise of the modern world is been defined by a set of regular laws or patters, and that we can investigate these laws. Generally, it is known that positivity brings open doors and also a level ground for normal discussions with even people that have spent barely few hours with a said person. This research method is also been seen as the type where theory is typically provided as a set of related variables express by some form of formal logic, proven empirically to be significant.

4 0

2 years ago

McCarthy Company has inventory... McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, i

KatRina [158]

Answer:

Ending inventory= $3,485

Explanation:

Giving the following information:

Beginning inventory= 8 units for $200 each

On October 2= purchased 20 units at $205 each.

11 units are sold on October 4.

u<u>nder the FIFO (first-in, first-out) inventory method, the ending inventory is calculated using the cost of the last units incorporated into inventory.</u>

Ending inventory= 17*205= $3,485

6 0

3 years ago

Elain's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine?'s Inflatables

Ede4ka [16]

Answer:

The accounting entry for each transaction is given below.

Gibson contributed $10,000 to the business in exchange for capital.

Debit Cash Asset $10,000

Credit Capital $10,000

b. Purchased equipment for $5,000 on account.

Debit equipment Asset $5,000

Credit Payable Liability $5,000

c. Paid $400 for office supplies.

Debit payable $400

Credit Cash Asset $400

d. Earned and received $2,500 cash for service revenue.

Debit Cash Asset $2,500

Credit Income $2,500

e. Paid $400 for wages to employees.

Debit Wages expense $400

Credit Cash Asset $400

f. Gibson withdrew $1,000 cash

Debit Capital $1,000

Credit Cash Asset $1,000

.g. Earned $1,000 for services provided. Customer has not yet paid.

Debit Receivable $1,000

Credit Service Income $1,000

h. Paid $1,000 for rent.

Debit Rent expense $1,000

Credit Cash Asset $1,000

i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

Debit Utility expense $250

Credit payable $250

8 0

3 years ago

11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of produ

Delvig [45]

This question is incomplete, the complete question is;

Martinez company's relevant range production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:-

Average cost per unit

Direct materials $7.00

Direct labor $4.50

Variable manufacturing overhead $1.40

Fixed manufacturing overhead $4.00

Fixed selling expense $4.00

Fixed administrative expense $2.10

Sales commissions $1.10

Variable administrative expense $0.55

If 8,000 units are produced,

a) what is the total amount of manufacturing overhead cost incurred to support this level of production

b) What is this total amount expressed on a per unit basis

Answer:

a) the total amount of manufacturing overhead cost incurred to support this level of production is $51,200

b) What is this total amount expressed on a per unit basis is $6.40

Explanation:

Given that;

number of units produced is 8,000 units

Variable manufacturing overhead is $1.40

Variable manufacturing overhead cost will be units produced / Variable manufacturing overhead

so Variable manufacturing overhead cost = 8000 units × $1.40 = $11,200

Now Fixed manufacturing overhead cost = 10000 units × $4 = $ 40,000

Total manufacturing overhead cost is the addition of Variable manufacturing overhead cost and Fixed manufacturing overhead cost

$11,200 + $40,000 = $51,200

Number of units produced = 8,000

therefore Manufacturing overhead per unit = Total manufacturing overhead cost / Number of units produced

51,200 / 8,000 = $6.40

6 0

3 years ago