A certificate of deposit (CD) would be the best banking
choice when the interest rate is determined ahead of time and there is an
assurance to get back what you put in plus interest once the CD matures. If you leave the money alone during the
investment period then the bank will pay you an interest rate slightly higher
than what you would have earned in a money market or checking account. Thus,
all gains from certificate of deposits are taxable as income unless they are in
a tax-deferred (IRA) r tax-free (Roth IRA) account.
Answer and Explanation:
The preparation of the schedule to reconcile the net income to net cash flow from operating activities is presented below:
Cash from operating activities
Net income $24
Adjustment to reconcile
Add: Depreciation expense $11.5
Add: Depletion expense $5.4
Less: Gain on sale of Equipment -$17.5
Add: Loss on sale of land $7.3
Less: increase in account receivable ($292.30 - $228) -$64.30
Add: increase in accounts payable ($177.60 - $165) $12.6
Add: increase in salaries payable ($29 - $24) $5
Add: decrease In prepaid insurance ($18.7 - $14.3) $4.4
Add: Decrease in bond discount ($12.3 - $10.4) $1.9
Add: increase in income tax payable ($24 - $12.4) $11.60
net cash flow from operating activities $4.20
The cash outflow represents in a negative sign while the cash inflow represents in a positive sign
Answer:
Classifications :
- Direct Costs
- Indirect Costs
- Product Costs
- Period Costs
- Variable Costs
- Fixed Costs
Reasons for classifying costs :
- Inventory valuation
- Profit Measurement
Explanation:
The first step in Cost Classification if to Identify the Cost object.The Cost object is the unit or entity for which determination of cost is required.
By observing the cost accumulating on the cost object we would identify two types of costs :
- Direct Cost - Costs that can be traced on the cost object
- Indirect Cost - Costs that can not be directly traced on the cost object
Another category used to classify costs is whether or not they will be included in product valuation.
- Product Cost - Attached to Product and included in valuation
- Period Cost - Not attached to product and thus not included in product valuation
Lastly the Costs Behaviors bring about different classifications as follows :
- Variable Costs
- Fixed Costs
- Semi-fixed Costs
- Semi - Variable Costs
Answer:
15.4%
Explanation:
Calculation to determine what would the ROI be
ROI=[ ( $2.40 - $1.30) * 21,400 - $7,400]/100,000
ROI=($1.1 * 14,000)/100,000
ROI=$15,400/100,000
ROI=0.154*100
ROI=15.4%
Therefore the ROI would be 15.4%
