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2 years ago

Classify the following cash flows as either operating, investing, or financing activities assume indirect method.

Business

1 answer:

pshichka [43]2 years ago

6 0

Answer:

Operating Activities

Received cash payments from customers.

Purchased inventories with cash.

Paid cash interest on outstanding notes.

Paid accounts payable with cash.

Investing Activities

Sold stock investments for cash.

Received cash from sale of equipment.

Received cash dividends from investments.

Financing Activities

Received cash from short-term debt issuance.

Paid cash dividends.

Received cash from long-term debt issuance.

Explanation:

Operating Activities consist of trading activities of the business.

Investing Activities consists of acquisition and sale of investments

Financing Activities costs of sourcing and repayments of sources of finance

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Adam, Ben and Erica are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balance

ser-zykov [4K]

Answer:

Adam = $41,000 , Ben = $31,000 , Erica =$20,000

Profit and loss sharing Ratio respectively =1:1:2

Requirement 1

Cash available $72,000

Add: Cash received from sale of $50,000

non-cash assets

$122,000

Less: Cash paid against account $20,000

receivables

Cash to be distributed $102,000

Distribution

Adam= $102,000 * 1/4 = $25,500

Ben = $102,000 * 1/4 = $25,500

Erica = $102,000 * 2/4 = $51,000

Requirement 2

Cash available $72,000

Add: Cash received from sale of $25,000

non-cash assets

$97,000

Less: Cash paid against account $20,000

receivables

Cash to be distributed $77,000

Distribution

Adam= $77,000 * 1/4 = $19,250

Ben = $77,000 * 1/4 = $19,250

Erica = $77,000 * 2/4 = $38,500

3 0

3 years ago

The following information pertains to Ash Co., which prepares its statement of cash flows using the indirect method: Interest pa

Alborosie

Answer:

$30,000

Explanation:

A supplemental disclosure of cash flow information requires that all the cash paid in interest during the period must be disclosed.

In Ash's case:

beginning balance interest payable account $15,000

+ interest expense during the year $20,000

- ending balance interest payable account ($5,000)

supplemental disclosure = $30,000

6 0

3 years ago

A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the

Misha Larkins [42]

Answer:

Fixed costs= $10,000

Explanation:

Giving the following information:

Highest activity cost= $13,000

Highest activity= 3,000 units

Lowest activity cost= $11,000

Lowest activity= 1,000 units

To calculate the unitary variable cost and total fixed cost, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (13,000 - 11,000) / (3,000 - 1,000)

Variable cost per unit= $1

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 13,000 - (1*3,000)

Fixed costs= $10,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 11,000 - (1*1,000)

Fixed costs= $10,000

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3 years ago

charitable contributions of a firm being tied directly to the customer revenues produced through the promotion of one of its pro

wel

Answer:

Cause marketing

Explanation:

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3 years ago

You've just created and e-mailed the financial statements to your boss? What is the next step you should do in accounting cycle?

KonstantinChe [14]

You've just created and e-mailed the financial statements to your boss. What is the next step you should do in accounting cycle? Close out the revenue and expense accounts. After the financial statements are prepared all nominal accounts which include the revenue and expenses, should be closed out to zero. This allows for the accounts to be at an even start for the next accounting cycle.

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3 years ago