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Anon25 [30]
3 years ago
7

A company has revenues of $1,250,000 with a net profit margin of 10%. If the depreciation for the year is $75,000, short-term in

vestments decreased by $15,000, accounts receivable increased by $10,000, inventory decreased by $5,000 and accounts payable decreased by $6,000, what is the net cash provided by operations.
Business
1 answer:
seropon [69]3 years ago
7 0

Answer:

$204,000

Explanation:

The computation of net cash provided by operations is shown below

Cash flow from operating activities

Net profit ($1,250,000 × 10%) $125,000

Add: depreciation expense $75,000

Add: Decrease in short term investment $15,000

Less: Increase in account receivable -$10,000

Add: Decrease in inventory $5,000

Less: Decrease in account payable -$6,000

Net Cash provided by operations $204,000

The minus sign depicts the cash outflow and the positive sign depict the cash inflow

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jerome needs to track what materials the business has in shock and compare current amounts with the amounts at the beginning of
Svet_ta [14]

Jerome could be taking inventory. This process ensures that the business has the raw goods it needs to operate.

7 0
3 years ago
homeworklib You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-fre
bezimeni [28]

Answer:

The fund with the highest ratio is Fund B.

Explanation:

Risk-free return = 6%

The average return on the market portfolio = 19%

The ratio equation formula is as follows:

FUND A: Return on fund - Risk free rate - Beta (Return on market portfolio -  Risk free rate)/Standard deviation of fund

FUND A : 20 - 6 - 0.8(19 - 6 ) / 4 = 0.9

FUND B : 21 - 6 - 1(13)/1.25 = 1.6

FUND C : 23 -6 - 1.2 (13 ) /1.2 = 1.167

Therefore, the fund with the highest ratio is Fund B.

5 0
3 years ago
Craft, Inc. normally produces between 120,000 and 150,000 units each year. Producing more than 150,000 units alters the company'
Yanka [14]

Answer:

The correct answer to the given question is Relevant range.

Explanation:

Relevant range , in accounting , can be defined as that amount of activity or range of volume where company's fixed expenses would not differ as the volume of activity changes. This term has relevance with the fixed cost, as if a company's volume decreases then company would try to decrease their fixed cost and similarly if the volume increases the company's fixed expenses would also increase.

5 0
2 years ago
In the current year, Norris, an individual, has $59,000 of ordinary income, a net short-term Capital loss (NSTCL) of $9,100 and
kondaur [170]

Answer: an offset against ordinary income of $3,000 and a NSTCL carryforward of $2,400

Explanation:

Feom the question, we are told that in the current year, Norris, an individual, has $59,000 of ordinary income, a net short-term Capital loss (NSTCL) of $9,100 and a net long-term capital gain (NLTCG) of $3,700.

From his capital gains and losses, Norris reports an an offset against ordinary income of $3,000 and the a net short-term Capital loss (NSTCL) balance carryforward will be the difference between the net short-term Capital loss (NSTCL) of $9,100 and a net long-term capital gain (NLTCG) of $3,700 and the offset against ordinary income. This will be:

= ($9100 - $3700) - $3000

= $5400 - $3000

= $2400

4 0
2 years ago
Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.
kozerog [31]

Answer:

Predetermined overhead rate=$19.5/machine hour

The company applied  $877500 to the units produced.

Explanation:

a) Pre-determined overhead rate= <u>Budgeted overhead manufacturing cost</u>

                                                         Estimated number of machine hours

                                                    =975000/50000=$19.5/machine hour.

b)Applied overhead = Pre-determined overhead rate * Actual machine hours

                               = 19.5 * 45000

                              =$877500.

c.

In traditional costing we use as base for calculating overhead rate is machine hours or labor hours but in activity based costing we identify activity that consume resources,identify cost driver of each activity,compute cost rate per cost driver unit and finally assign cost to products by multiplying cost driver rate.

Predetermined overhead rate= estimated overhead/Estimated base (cost driver).

7 0
3 years ago
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