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3 years ago

Which financial statements is divided into major categories of operating, investing and financing activities?

1 answer:

8 0

The financial statements that is <span>divided into major categories of operating, investing and financing activities is the statement of cash flow. In this statement, the cash inflows and outflows of the company would be shown. The operating would show the cash flow in the normal operation of the business. The investing would show the cash flow in the investments of the company. And the financing will show the cash flow of the finances of the company. The primary purpose of this statement is to inform readers how much cash is available in the company. This will be a factor in determining the company's liquidity.</span>

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According to the factor price equalization theorem, if country B is labor abundant, then if country B initiates trade with count

yKpoI14uk [10]

Answer:

wages should rise and rents should fall in A

Explanation:

The Factor Price Equalisation Theory states that when two countries trade, the price of identical factors of production will tend to be equalised across the countries. Factors of production include wage rate and rent of capital.

So if a country that is labour abundant trades with another country A there will be tendency for exportation of the excess labour of country B to country A.

As a result country A will become more labour intensive and wages of workers will rise since focus is more on use of labour.

However since less capital will now be used the money spent on renting capital will reduce.

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3 years ago

Arlington LLC exchanged land used in its business for some new land. Arlington originally purchased the land for $28,000. The ne

Nata [24]

Answer:

The correct answer here is $2000.

Explanation:

Given information -

Original value of asset - $28,000

Fair market value - $35,000

Equipment received in exchange of transaction - $2000

For taking out the Arlington's gain or loss on the exchange we will select the lesser of the f\given two, which are fair market value of equipment which is $2000 and other one is gain recognized by - $35,000 + $2000 - $28,0000 = $9000, so the lesser of the two is $2000.

3 0

3 years ago

Friendly's quick loans, inc., offers you "ten for twelve or i knock on your door." this means you get $10.00 today and repay $12

valkas [14]

Answer:

Friendly's would say you were paying <u>1042.86% APR</u>.

Explanation:

Annual percentage rate (APR) can be described as the yearly interest rate that is paid by a borrower to a lender which is expressed in percentage term without taking compounding into consideration.

Annual Percentage Rate (APR) can be determined using the following formula:

APR = {[(Fees + Interest amount) / Principal / n] * 365} * 100 ……………… (1)

Where;

APR = ?

Fees = 0

Interest amount = Amount to repay - Amount to borrow = $12.00 - $10.00 = $2.00

Principal = Amount to borrow = $10.00

n = Number of days in the loan term = One week = 7 days

Substituting the values into equation (1), we have:

APR = {[(0 + 2) / 10 / 7] * 365} * 100

APR = 1042.86%

Therefore, friendly's would say you were paying <u>1042.86% APR</u>.

5 0

3 years ago

An increase in a consumer's income Group of answer choices increases the slope of the consumer's budget line. has no effect on t

kramer

An increase in a consumer's income will increase the slope of the consumer's budget line.

<h3>What is a budget line?</h3>

The budget line sometimes referred to as the budget restriction, displays every combination of two commodities that a client is able to afford at the current market pricing and within their specific income range.
The budget line is a graphical representation of every combination of the two commodities that may be purchased using the given income and cost, with the price of each combination being equal to the customer's monetary earnings.
It's critical to remember that the slope of the budget line corresponds to the cost-to-volume ratio of two commodities.
The slope of the budgetary restriction is very significant.

<h3>Increase in the slope of the budget line:</h3>

A rise in income allows consumers to purchase more of both goods, which causes the budget line to shift outward, or to the right (slope increases).

Therefore, an increase in a consumer's income will increase the slope of the consumer's budget line.

Know more about the slope of the budget line here:

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6 0

2 years ago

Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into ya

Svetllana [295]

Answer:

1. Journal Entries:

A. Debit Materials $500,000

Credit Accounts payable $500,000

To record the purchase of materials on account.

B. Debit Work-in-Process - Spinning $275,000

Credit Materials $275,000

To record the materials requisitioned.

B. Debit Work-in-Process -Tufting $110,000

Credit Materials $110,000

To record carpet backing

B. Debit Overhead - Spinning $46,000

Debit Overhead - Tufting $39,500

Credit Materials $85,500

To record indirect materials used.

C. Debit Work-in-Process - Spinning $185,000

Debit Work-in-Process - Tufting $98,000

Credit Factory labor $283,000

To record direct labor costs.

C. Debit Overhead - Spinning $18,500

Debit Overhead - Tufting $9,000

Credit Factory labor $27,500

To record indirect labor costs.

D. Debit Overhead - Spinning $12,500

Debit Overhead - Tufting $8,500

Credit Factory Depreciation $21,000

To record depreciation costs.

E. Debit Overhead - Spinning $2,000

Debit Overhead - Tufting $1,000

Credit Factory Insurance $3,000

To record insurance costs.

F. Debit Work-in-Process - Spinning $80,000

Debit Work-in-Process - Tufting $55,000

Credit Factory Overhead $135,000

To record overhead costs applied.

G. Debit Work-in-Process - Tufting $547,000

Credit Work-in-Process - Spinning $547,000

To record the transfer to Tufting department.

H. Debit Finished Goods Inventory $807,200

Credit Work-in-Process- Tufting $807,200

To record the transfer to Finished Goods.

I. Debit Cost of Goods Sold $795,200

Credit Finished Goods $795,200

To record the cost of goods sold.

2. January 31 balances of the inventory accounts:

Finished Goods = $74,000

Work-in-Process - Spinning = $28,000

Work-in-Process - Tufting = $32,300

Materials = $46,500

3. Factory Overhead Accounts:

Overhead - Spinning:

B. Materials (Indirect) 46,000

C. Indirect labor 18,500

D. Depreciation exp. 12,500

E. Factory insurance 2,000

F. Applied overhead 80,000

Overapplied overhead 1,000

Overhead - Tufting:

B. Materials (Indirect) 39,500

C. Indirect labor 9,000

D. Depreciation exp. 8,500

E. Insurance expense 1,000

F. Applied overhead 55,000

Underapplied overhead 3,000

Explanation:

a) Data and Calculations:

January 1 Inventories:

Finished Goods = $62,000

Work in Process- Spinning = $35,000

Work in Process - Tufting = $28,500

Materials = $17,000

Finished Goods

Account Titles Debit Credit

Beginning balance $62,000

Work-in-Process-Tufting 807,200

Cost of Goods Sold $795,200

Ending balance 74,000

Work-in-Process - Spinning

Account Titles Debit Credit

Beginning balance $35,000

B. Materials 275,000

C. Direct labor 185,000

F. Applied overhead 80,000

G. Work-in-Process -Tufting $547,000

Ending balance 28,000

Work-in-Process - Tufting

Account Titles Debit Credit

Beginning balance $28,500

B. Carpet backing 110,000

C. Direct labor 98,000

E. Insurance expense 1,000

F. Applied overhead 55,000

G. WIP- Spinning 547,000

H. Finished Goods $807,200

Ending balance 32,300

Cost of Goods Sold

I. Finished Goods $795,200

Materials

Account Titles Debit Credit

Beginning balance $17,000

A. Accounts receivable 500,000

B. Work-in-Process - Spinning $275,000

B. Work-in-Process - Spinning 46,000

B. Work-in-Process - Tufting 39,500

B. Work-in-Process - Tufting 110,000

Ending balance 46,500

6 0

3 years ago