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mina [271]
3 years ago
15

A.The loss on the cash sale of equipment was $4,375 (details in b).B. Sold equipment costing $97,875, with accumulated depreciat

ion of $47,125, for $28,625 cash.C. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term note payable for the balance.D. Borrowed $5,700 cash by signing a short-term note payable.E. Paid $58,625 cash to reduce the long-term notes payable.F. Issued 4,200 shares of common stock for $20 cash per share.G. Declared and paid cash dividends of $53,500.Prepare a complete statement of cash flows; report its operating activities using the indirect method.
Business
1 answer:
n200080 [17]3 years ago
8 0

Answer:

<u><em>Cash Flow Statement </em></u>

Cash flow from Operating Activities

Adjustment for Non - Cash items :

loss on the cash sale of equipment                            $4,375

Adjustment for Working Capital items :

Increase in short-term note payable                           $5,700

Net Cash from Operating Activities                           $10,075

Cash flow from Investing  Activities

Proceeds from sale of equipment                            $28,625

Purchase of Equipment                                            ($64,000)

Net Cash from Investing Activities                           ($35,375)

Cash flow from Financing  Activities

Repayment of the long-term notes payable           ($58,625)

Issue of Common Stocks                                           $84,000

Dividend Paid                                                            ($53,500)

Net Cash from financing Activities                           ($28,125)

Movement During the Year                                     ($53,425)

Explanation:

The Indirect method reconciles the Operating Profit to the Cash Flow from Operating Activities by adjusting the following items, (1) Non-cash items previously included or deducted from the Operating Profit and (2) Changes in Working Capital items.

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If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n) ______.
lara31 [8.8K]

Answer: a) increase in the demand for Kindles.

Explanation: the substitution effect for substitute goods gives that, if the price of good A rises, the demand for good B rises. Since a substitute good is a good that can be used in place of another, they are goods that a consumer perceives as similar or are comparable, in such a way that having more of one good causes the consumer to desire less of the other good. From the viewpoint of price, and given that consumers always prefer to spend less in instances where two goods are substitutes, it then means that Kindle can be used and preferred in place of Nooks given that the price of Nooks had gone up. Therefore, increasing the price of Nooks causes a corresponding increase in the demand for Kindles.

3 0
3 years ago
Molly Jasper and her sister, Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, oft
Paladinen [302]

a. The computation of Mollycaits' operating break-even point is <em>2,473 units</em> ($4,500/$1.82).

b. The calculation of Mollycaits' EBIT on the department store order is <em>$812.40</em> ($9,500 - $8,688).

c. If department stores' price were $9.51, the EBIT will be <em>$5,387</em> ($14,075 - $8,688).

Note that for (b) and (c), the fixed cost is not considered.

d. Without paying more than $7.69, the quantity that will result in an EBIT of $3,700 is <em>4,505 units</em> ($4,500 + $3,700)/$1.82

e.  Varieties of Mollycaits = 15 with variable cost of $5.87

f. The recommendation to Molly and Caitlin with regard to pricing and varieties to offer is that, while the company can varieties to suit the needs of customers, it must ensure that it does not price them below $5.87, its operating cost.

Data and Calculations:

<u>Special contract</u>:

Units of figurines offered = 1,480

Sales value of offer = $9,500

Selling price per unit = $6.42 ($9,500/1,480)

Variable operating cost = $5.87

Contribution margin per unit = $0.55 ($6.42 - $5.97)

<u>Normal business</u>:

Estimated average price per unit = $7.69

Variable operating cost = $5.87

Contribution margin per unit based on average price = $1.82 ($7.69 - $5.87)

Fixed cost per month = $4,500

Thus, Molly and Caitlin can offer various types of figurine, but they must sell at least 2,473 units to break-even.

Learn more about computing break-even points here: brainly.com/question/9212451

5 0
3 years ago
A review of the personal selling process indicates that selling is:
MArishka [77]

Answer:

d. a matter of establishing relationships.

Explanation:

Selling involves creating a relationship with the prospect.

The sales relationship has the short-term value you get from the customer.

There is also the long-term life-time value of the customer to be considered.

Sales based on referrals are the easiest to obtain and give best value.

Good relationships give rise to refrrals.

7 0
3 years ago
Sam's Pizzeria International Inc. operates and franchises pizza delivery and carryout restaurants worldwide. The following is an
Alisiya [41]

Answer:

The Adjusted trial balance is

Explanation:                                                 Amount in $

                                                               Dr.                           Cr.

Accounts Payable                                                           38,882

Intangible Assets                                 82,031

Accounts Receivable                           56,057

Interest Expense                                     4,089  

Accrued Expense Payable                                               58,333

Interest Revenue                                                                    732

Accumulated Deprecation                                               337,564

Inventories                                              27,410

Capital                                                                                  48,012

Land                                                         32,890

Advertising Expense                              63,473

Long Term Debt                                                                 230,561

Buildings & Leasehold                            203,651

Long Term Note Receivable                     12,821

Cash                                                            20,142

Other Assets                                              42,540

Common Stock                                                                      483

Other Long Term Liabilities                                                64,213      

Capital & Retained Earning                                                418,279

Prepaid and Other Current assets        36,838

Depreciation Expense                           39,995

Rent and Utilities Expense                    215,720  

Equipment                                              320,520        

Total                                                     <u>1,158,177 </u>                   <u>1,158,177</u>

<u>Note: </u>In absence of sales revenue, other expenses and paid up capital data which is missing in question, the capital and retained earnings are taken as balancing figure                                                                                

4 0
3 years ago
the​ risk-free rate is 3​% and you believe that the​ S&amp;P 500's excess return will be 10​% over the next year. If you invest
horrorfan [7]

Answer:

The expected excess return will be 11.4%

Explanation:

The S&P 500's excess return is the market return (rM). Using the CAPM model or the SML approach, we can calculate the required/expected rate of return on the stock we are investing in.

The expected rate of return is,

r = rRF + β * (rM - rRF)

Thus, return on the invested stock will be:

r = 0.03 + 1.2 * (0.1 - 0.03)

r = 0.114 or 11.4%

7 0
3 years ago
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