Why is it important to know to know how much is in your checking account ?

Consider the same scenario as in the previous question: On March 31, 2015, Cars, Inc. owes Preston Devices, one of its suppliers

zubka84 [21]

Answer:

Explanation:

On March 31, 2015, Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previous purchases. During April 2015, Preston sells Cars devices with a sales price of $10,000 and a cost to Preston of $8,000. During April, Cars pays Preston $12,000 against the amount owed to Preston.

Decrease in Accounts Receivable = 12000-10000 = $2000

Decrease in Inventory = $8000

Decrease in Accounts Receivable and decrease in inventory are added to net income under indirect method statement of cash flows

<h3>Therefore the answer is </h3><h3>Add change in accounts receivable; add change in inventory.</h3>

6 0

3 years ago

For each item below, indicate to which category of elements of financial statements it belongs. (a) Dividends select a category

notka56 [123]

Answer:

(a) Dividends : Equity

(b) Interest receivable :Assets

(c) Issuance of preferred stock : Equity

(d) Prepaid insurance: Assets

(e) Amortization: Expenses

(f) Cost of goods sold: Expenses

(g) Accounts payable: Liabilities

(h) Cash: Assets

(i) Equipment: Assets

(j) Gain on sale of equipment: Revenues

Explanation:

The main elements of financial statements are: Assets, Liabilities, Equity , Revenues and Expenses.

Assets are all the resources that the company has.

Liabilities are all the obligations that the company has.

Equity is the difference of subtracting the liabilities of the assets.

Revenue is the economic benefit that the company receives.

Expenses are the disbursements that the company makes.

5 0

4 years ago

A $200,000 loan amortized over 12 years at an interest rate of 10% per year requires payments of $21,215.85 to completely remove

lesya [120]

Answer:

loan balance after 12 years = $185409.8

Explanation:

Loan principal = $200000

interest = 10% of principal

amount paid yearly = $21215.85

For 1st year

principal for the first year = $200000

required interest to be paid = 10% of 200000 = $20000

amount paid = $21215.85

Loan Balance after first year = (principal for first year) - (amount paid - 10% of principal ) = $198,784.15

For 2nd year

principal for the 2nd year = Loan balance after first year = $198,784.15

loan balance after 2nd year = 198784.15 - ( 21215.85 - 10% of 198784.15)

= $197568.30

same applies for the different years until the 12th year

using this formula :

Loan Balance after Nth year = [ Loan balance after (n-1) year - ( amount paid - 10% of loan balance after (n-1) year ) ]

6 0

3 years ago

Alpaca Corporation had revenues of $300000 in its first year of operations. The company has not collected on $19900 of its sales

lyudmila [28]

Answer:

$238,148

Explanation:

Total expenses:

= Inventory purchased + Salaries expense + Interest expenses + Insurance expense

= $85,000 + $15,000 + $3,300 + $3,900

= $107,200

Net income:

= Total revenue - Total expenses

= $300,000 - $107,200

= $192,800

Net income after tax:

= Net income - Taxes

= $192,800 - ($192,800 × 9%)

= $192,800 - $17,352

= $175,448

Cash balance:

= Net income after tax - Amount not collected on accounts receivable + Amount not paid on purchases - Prepaid insurance + Money invested by owners + Money borrowed

= $175,448 - $19,900 + $26,500 - $3,900 + $30,000 + $30,000

= $238,148

6 0

3 years ago

A family with 45000 in asserts and 22000 of liabilities would have a net worth of?

-Dominant- [34]

The answer would be B, $23,000.

8 0

4 years ago

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