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2 years ago

Which of the following statements is CORRECT?

Business

1 answer:

Oduvanchick [21]2 years ago

5 0

Answer:

d. The statement of cash flows shows how much the firm's cash, the total of currency, bank deposits, and short-term liquid securities (or cash equivalents), increased or decreased during a given year.

Explanation:

In a statement of cash flows , what we have shown is a summary of cash and also all equivalents if cash that goes into and also goes out if a firm or company. It provides to what extent that cash is being managed by a firm. Therefore option D is the answer to this question since it talks about how cash increases or decreases in a firm in a particular year

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The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Yea

Sergio [31]

Answer:

payback period = 4.86 years

Explanation:

given data

cash flows year 1 = $30,000 per year

cash flows year 5 = $35,000 per year

cash flows year 10 = $40,000 per year

investment cost = $150,000

to find out

payback period for this investment

solution

we get here accumulated inflows will be

accumulated inflows year 4 = $30,000 × 4

accumulated inflows year 4 = $120,000

and

accumulated inflows year 5 = $120,000 + $35,000 = $155,000

and Initial investment = $150,000

so payback period will be

payback period = 4 years + (150,000 - 120,000) ÷ 35,000 × 365 days

payback period = 4 years and 313 days

payback period = 4.86 years

3 0

3 years ago

Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this y

kakasveta [241]

Answer:

Results are below.

Explanation:

Absorption vs Variable costing method

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

1) First, we need to calculate the total unitary variable cost:

Unitary production variable cost= 35 + 55 + 40= $130

Selling and administrative costs for the year Variable $ 725,000

Unitary total variable cost= 130 + (725,000 / 80,000)= $139.06

Now, the variable income statement:

Sales= 80,000*350= 28,000,000

Total variable cost= (80,000*139.06)=(11,124,800)

Total contribution margin= 16,875,200

Fixed overhead= (6,600,000)

Fixed Selling and administrative costs = (4,250,000)

Net operating income= 6,025,200

2) First, we need to calculate the unitary production cost:

Unitary production cost= 130 + (6,600,000/110,000)= $190

Now, the absorption costing income statement:

Sales= 28,000,000

COGS= 80,000*190= (15,200,000)

Gross profit= 12,800,000

Total Selling and administrative costs= (725,000 + 4,250,000)= (4,975,000)

Net operating income= 7,825,000

5 0

3 years ago

A Canadian subsidiary of a U.S. parent firm is instructed to bill an export to the parent in U.S. dollars. The Canadian subsidia

Kaylis [27]

Answer:

10% foreign exchange loss on the U.S. dollar accounts receivable

Explanation:

Based on the information provided within the question it can be said that in this example the Canadian subsidiary will record a 10% foreign exchange loss on the U.S. dollar accounts receivable. That is because as the Canadian dollar has appreciated 10% against the U.S. dollar, it means that it has lost 10% of it's buying power due to its foreign exchange price change, thus resulting in a loss which needs to be recorded.

4 0

2 years ago

Merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30. The journal entry to record the sale would in

Savatey [412]

Answer:

Debit to sales discounts for $100

Explanation:

Please see journal entry to record the sales below;

a. Dr accounts receivable $5,00

To sales revenue account $5,000

(Being merchandise that is sold on credit basis)

Suppose payment is made within 10 days, the journal entry will be;

Dr Cash account $4,900

Sales discount account $100

(5,000 × 2%)

To accounts receivable $5,000

(Being cash that is received)

8 0

2 years ago

A cash budget:______.A. Would be as useful to a business which makes sales only on a credit basis, as it is to a business making

Umnica [9.8K]

Answer:

A. Would be as useful to a business which makes sales only on a credit basis, as it is to a business making sales for cash.

Explanation:

A cash budget shows the cash flow for a business over a certain time period in which the budget determines if the business has enough cash to operate.

4 0

2 years ago