Answer:
$100,000
Explanation:
A triple indemnity clause attached to a life insurance policy should pay in case of accidental death three times the amount of the policy. But in order for this clause to be effective, the insured must not have any responsibility in the accident.
In this case, since the accident was caused by the insured, the triple indemnity clause doesn't apply, so the regular amount ($100,000) has to be paid to the beneficiary.
Answer:
b. $60,000
Explanation:
Implicit cost is the cost which is not shown as a cost in the statement of income.
As it includes basically the opportunity cost.
This will include:
Salary foregone = $45,000
Entrepreneurial skills income = $5,000
Interest on bonds foregone = $100,000
10% = $10,000
Thus, total implicit cost = $45,000 + $5,000 + $10,000 = $60,000
Answer:
The ending cash account balance for Apricot Inc is $8,297.
Explanation:
There are three components in the statement of cash flows:
- Operating activities - Here, non-cash items applied to deriving the net income based on the accrual basis are adjusted for. Also, the movement in working capital and liabilities are accounted for.
- Investing activities encompass the assets purchased to generate the net income.
- Financing activities: These include activities that are geared towards improving the capital structure of the organization.
In deriving the cash flows at the end of the period, the balances in the activities above are added up, either outflow or inflow. Then the addition is added to the beginning balance of cash flows. This is done below.
Net cash flow provided by operating activities $45,042
Net cash flow used in investing activities ($20,831)
Net cash flow used in financing activities ($27,997)
Beginning cash account balance $12,083
Ending cash account balance $8,297