Answer:
$86 million
Explanation:
The computation of the net cash flows from operating activities using the indirect method is shown below:
Cash flows from operating activities
Net income $81 million
Add: depreciation expense $9 million
Less: Gain on sale of equipment -$1 million
Less: Increase in account receivable -$3 million
Less: Increase in inventory -$3 million
Add: Increase in account payable $3 million
Net cash flows from operating activities $86 million
Answer:
$6,450
Explanation:
The general ledger of a cash account is presented below:
Cash Account
Date Particulars Amount Date Particulars Amount
April 1 Beginning April 16 Rent expense $460
Balance $3,850
April 3 Service April 20 Salaries and
Revenue $3,400 Wages expense $340
April 30 Ending balance $6,450
The ending balance would be
= Beginning balance + service revenue - rent expense - salaries and wages expense
= $3,850 + $3,400 - $460 - $340
= $6,450
Answer:
Results are below.
Explanation:
<u>To calculate the activities rates, we need to use the following formula on each pool:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Pool 1= 20,000/10,000= $2 per direct labor dollar
Pool 2= 15,000/50= $300 per setup
Pool 3= 10,000/200= $50 per hour
<u>Now, we can allocate costs to each product:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product A:
Pool 1= 2*4,000= 8,000
Pool 2= 300*20= 6,000
Pool 3= 50 *50= 2,500
Total allocated costs= $16,500
Product B:
Pool 1= 2*6,000= 12,000
Pool 2= 300*30= 9,000
Pool 3= 50 *150= 7,500
Total allocated costs= $28,500
A few of the following can be considered major factors in failure of small businesses:
-Lack of financial planning: when a business is born it needs to critically plan out the first few years of running. Small business often fail to plan out for the future and have less working capital at hand.
-Lack of expertise: small business cannot afford specialist managers and this may be a reason for failure
-no investment in marketing and research can also be a reason.
