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JulijaS [17]
2 years ago
7

To compare statement of cash flows reporting under the direct and indirect methods, indicate whether each item is used in the di

rect method or the indirect method.
a. Accounts payable
b. Payments to employees
c. Cash collections from customers
d. Accounts receivable
e. Payments to suppliers
Business
1 answer:
Olegator [25]2 years ago
5 0

Answer:

Indirect Method

      a. Accounts payable increase or decrease

      d. Accounts receivable increase or decrease.

<em>The above are both used in the Indirect method and fall under Cashflow from Operating activities. </em>

Direct Method    

     b. Payments to employees

     c. Cash collections from customers  

     e. Payments to suppliers

<em>The direct method involves the above and they all fall under Cash generated from operations. </em>

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Last year Lowell Inc. had a total assets turnover of 1.40 and an equity multiplier of 1.75. Its sales were $295,000 and its net
katrin [286]

Answer:

ROE would have changed by 8.52%

Explanation:

First we calculate the current ROE using Dupont Equation which gives ROE as,

ROE = Net Income/Sales * Sales/Total Assets * Total Assets/Equity

or

ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier

  • Current ROE = 10600/295000 * 1.4 * 1.75 = 0.0880 or 8.8%

The condition says that the net income could have increased to 20850 but other factors will remain constant. Thus, to calculate new ROE, we will calculate the new Net Profit margin but the total assets turnover and the equity multiplier will remain constant as sales assets and capital structure is not changing.

  • New ROE = 20850/295000 * 1.4 * 1.75 = 0.17316 or 17.32%
  • The ROE would have changed by 17.32 - 8.80 = 8.52%
7 0
3 years ago
Rent control policies tend to cause
Savatey [412]

Answer:

The correct answer is d.  relatively smaller shortages in the short run than in the long run because supply and demand tend to be more inelastic in the short run than in the long run.

Explanation:

Rent control laws set limits on how much landlords can charge rent. The rent control laws specify:

  • What types of properties qualify for rent control.
  • How often rent limits can be adjusted.
  • How rent limits can be adjusted. Most rent control laws link increases in rental limits to an annual percentage of inflation in a local consumer price index.
  • The conditions when a property is "out of control."
  • Restrictions on the eviction of the tenant with rent control.

There are no federal rent control laws since the US Supreme Court. UU. He ruled that rent regulation is a state issue. Most states do not have rent control laws regulated. Only some cities and communities in some states continue to apply them.

In the United States, rent control laws were adopted during World War II when the country was experiencing a housing shortage. President Richard Nixon then passed the wage and price laws that influenced the modern rent control laws that are still being applied today. This is why most rent control laws usually apply to older properties built before 1980.

5 0
3 years ago
Answer the next question based on the following price and output data over a five-year period for an economy that produces only
marysya [2.9K]

Answer:

$90

Explanation:

The computation of the nominal GDP for the year 4 is shown below:

= Quantity at year 4 × price of year 4

= 18 × $5

= $90

For determining the Nominal GDP for the year 4 we simply multiply the quantity at year 4 with the price of year 4

Hence, the last option is correct

8 0
2 years ago
Should I still Go?
german
If the date of the appointment has been rescheduled, it's only logical not to show up on the day it was moved. Go to the appointment next week.
7 0
3 years ago
Read 2 more answers
This information relates to Cheyenne Real Estate Agency.
gregori [183]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr,                            $31,770

       To Common stock               $31,770

(Being issuance of shares for cash is recorded)

2. No Journal Entry is required

3. Office furniture Dr,          $3,740

       To Accounts payable           $3,740

(Being purchase of office furniture on credit is recorded)

4. Accounts receivable     $10,430

            To service revenue        $10,430

(Being customer billed for service is recorded)

5. Cash                                $185  

            To credit revenue       $185

(Being cash received for service is recorded)

6. Accounts payable $800  

                To cash                $800

(Being cash paid for office furniture purchased is recorded)

7. Salaries expense Dr, $3560  

               To cash                $3560

(Being salary paid is recorded)

5 0
3 years ago
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