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Oksanka [162]
3 years ago
13

Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income fo

r the 2018 fiscal year was $664,000. Depreciation and amortization expense of $95,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:
Decrease in accounts receivable $30,000
Increase in inventories 10,000
Increase prepaid expenses 9,300
Increase in salaries payable 10,800
Decrease in income taxes payable 19,000

Required:
Prepare the operating activities section of the 2018 statement of cash flows.
Business
1 answer:
rusak2 [61]3 years ago
3 0

Answer:

Net cash flow from operating activities $761,500

Explanation:

The preparation of the operating activities section is as follows;

Net income $664,000

Add: depreciation & amortization $95,000

Add: Decrease in accounts receivable $30,000

Less: Increase in inventories 10,000

Less: Increase prepaid expenses 9,300

Add: Increase in salaries payable 10,800

Less: Decrease in income taxes payable 19,000

Net cash flow from operating activities $761,500

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The production possibilities model illustrates an inverse relationship between two goods or services because
nikklg [1K]

Answer:

production of different types will compete for limited resources.

Explanation:

           The production possibilities model is also known as the Production–possibility frontier. It is the visual model of efficiency and scarcity. It provides the concept of how the economy can change things by using two goods as an example. It determines the trade offs that is associated with the allocation of the resources between the production of the two goods.

           The production possibilities curve or model shows the inverse relationship between the two goods and the services as producing different types of products or services will complete for the limited resources available.

          An economy has a very limited economic resource and therefore it can produce more number of one good by making only less of some another good.

6 0
3 years ago
Net present value ____________________. Group of answer choices compares project cost to the present value of the project benefi
lakkis [162]

Answer:

compares project cost to the present value of the project benefits

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

A good investment is an investment that has a positive NPV. When comparing two or more projects, the project with the higher NPV should be chosen.

4 0
4 years ago
Which of the following actions would likely raise homeowner's insurance premiums? Building the home in the floodplain of a river
natita [175]
Insurance is a coverage that assesses the risk of a certain item/person. If that item/person is in good condition, your insurance will be lower because it's less likely it'll get damaged. 
This is why if you have a bad driving history, your car insurance is high (as there is a high risk). 
If you were to instal an alarm, live in a safe neighbourhood or choose not to install a swimming pool you would actually reduce your insurance.
If you have an alarm, you are less likely to have stuff stolen (safer = less risk).
Living in a safe neighbourhood is safer = less risk.
Not installing a pool means your property remains the same value (putting a pool could increase it), higher risk of someone drowning in the pool, or hurting themselves. So by not building the pool, you'll have a safer environment = less risk.

If you build your house in a floodplain, the chance of your house getting damages by a flood is very very high, so you will have to pay more as there is an increased risk.


4 0
3 years ago
Read 2 more answers
Cost-Volume Profit Analysis Recline Company is planning to produce and sell 11,250 units of its only product at a unit price of
Anarel [89]

Answer:

Calculate Recline’s contribution margin ratio.  

Contribution Margin RATIO  34%

Calculate the break-even point in sales dollars for Recline.    

Break-Even Point  $1.030.556

Explanation:

  • The contribution margin it's determined by the total amount of Gross Profit divided by the total value of sales. To this case $405,000/$1,192,500 = 34%

      Income Statement

11.250       Quantities

$106          Unit Price

$1,192,500 Sales

-$787,500 Cost of goods sold

$405,000 Contribution Margin  34%

-$281,250 Fixed Cost

$123,750 Operating Income

  • The Break Even point it's when the Operating Income is equal to zero, it means the lowest level of sales the company can afford and not loss money.

 BREAK EVEN POINT

9.722        Quantities

$106         Unit Price

$1,030,556 Sales

-$787,500 Cost of goods sold

$243,056 Contribution Margin

-$243,056 Fixed Cost

$0            Operating Income

5 0
4 years ago
Chevron signs​ $73b gas deal ​Gorgon, Chevron's huge liquefied natural gas​ project, is finally going forward. The​ company, alo
vaieri [72.5K]

Answer:

Australia - <em>Shift​ Australia's production function​ upward, create a movement up along the production function as the​ full-employment quantity of labor​ increases, and increase potential GDP</em>

United States - <em>Will not change potential GDP as production happens in Australia</em>

Explanation:

Australia's production potential will rise which will be depicted by a shift upwards in the Production Possibilities Frontier (PPF) thereby leading to an increase in the full employment quality of labor and potential GDP for Australia.

As the production is happening in Australia, it will not affect potential GDP in the US.

3 0
4 years ago
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