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vredina [299]
3 years ago
7

A debt-free firm has net income of $210,000, taxes of $55,822.78, and depreciation of $42,000. What is the operating cash flow?

Business
1 answer:
hammer [34]3 years ago
6 0

Answer:

Operating cash flow= $196,177.22

Explanation:

Giving the following information:

Net income= $210,000

Tax= $55,822.78

Depreciation= $42,000

B<u>ecause the Tax was determined, to calculate the operating cash flow we need to use the following formula:</u>

Operating cash flow= net income - tax + depreciation

Operating cash flow= 210,000 - 55,822.78 + 42,000

Operating cash flow= $196,177.22

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Explain the typical relationship between retained earnings and net income/loss, and describe how this information is included in
lbvjy [14]

The typical relationship between retained earnings and net income/loss,tha Retained income represent the part of the net income of our organisation that remains after dividends have been paid on our shareholders.

The profits assertion is finished, the income discern from the time period is transferred to retained income inside the stockholder's fairness segment of the balance sheet. A net loss reduces retained profits; a net advantage will increase retained income.

The budgeting procedure lets an enterprise plan and prepare its budgets for a hard and fast length. It entails reviewing past budgets, identifying and forecasting sales for the coming period, and assigning amounts to spend on a enterprise's various prices.Feb 18, 2021

There are numerous extraordinary strategies to budgeting for businesses however those 4 kinds of budgets are the maximum generally used: incremental budgets, pastime-primarily based budgets, fee proposition budgets, and zero-primarily based budgets

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5 0
1 year ago
Research that investigated what behaviors were employed by effective leaders suggested that there are two types of leader? behav
hichkok12 [17]

Answer:

​task-focused; employee-focused

Explanation:

8 0
2 years ago
Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchase
Savatey [412]

Answer:

The correct option is B.

Explanation:

It is given that Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August.

Purchase in July = $180,000

Purchase in August = $210,000

Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.

In August, the cash disbursements for materials purchases be 3/4th of $210,000 (Purchase in August) and 1/4  of $180,000 (Purchase in July).

August's cash disbursements for materials purchases be

Amount=\frac{3}{4}\times 210000+\frac{1}{4}\times 180000

Amount=157500+45000

Amount=202500

The August's cash disbursements for materials purchases be $202500. Therefore the correct option is B.

4 0
3 years ago
In a small, closed economy, national income (GDP) is $ 400.00 million for the current quarter. Individuals have spent $ 150.00 m
Mashcka [7]

Answer:

The amount spent in this economy in the said quarter is<em> $100,000,000.00</em>

Explanation:

<em>However, in closed economies what it simply means is that there are no exports and imports.</em>

<em />

Investment (I) = business investment plus residential investment plus inventory investment. Government Purchases (G) = general government consumption plus general government investment. Net Exports (NE) = exports minus imports plus net tourism.

∴ to calculate the amount of money spent on this closed economy, I will use the <em>Expenditure Approach formula</em> for GDP and make Investment the subject of the formula which is

GDP formula is used which states that total output/GDP (Y) is equal to Consumption (C) + Investment (I) + Government Spending (G) + Net exports (NX). Where net exports is exports (X) minus imports (M): NX = X – M.

Where:

GDP (Y) = C + I + G + (X-M)

Where:

GDP (Y) = $400,000,000.00

C = $150,000,000.00

I = 0

G = $150,000,000.00

(X-M) = 0

GDP (Y) = C + I + G + (X-M) =

$400,000,000.00 = $150,000,000.00 + (I) + 150,000,000.00 + (X-M)

Making (I) the subject of the Formula

GDP- C -G = I

∴ $400,000,000.00 - $150,000,000.00 - $150,000,000.00 = I

∴ $400,000,000.00 - $300,000,000.00

=<em> $100,000,000.00</em>

<em></em>

The amount spent in this economy in the said quarter

=<em> $100,000,000.00.</em>

<em></em>

<em>Note: </em><em>I did not add the Tax because I used the Expenditure approach method which does not include the tax values while the Income Approach method does include it but excludes Export and Import values.</em>

6 0
3 years ago
In a tiny village, on the coast of South America, early inhabitants used sea shells, as money. Some of these shells were very be
RUDIKE [14]

Answer:

Option (B) is correct.

Explanation:

Unit of account:

There are some functions of money or we can say that characterstics of money:

(a) Medium of exchange

(b) Store of value

(c) Unit of account

(d) Standard of deferred payments

Sea shells are precious items but one cannot properly split divide those sea shells into small denominations like money does. Money is easily storable, people use as a medium of exchange and unit of account.

By unit of account we mean that we can easily measure the value of goods and service and many things in monetary terms but we cannot measure in terms of sea shells.

That's why sea shells unfit to act as money today.

8 0
3 years ago
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