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ollegr [7]
2 years ago
13

Based on this income statement for Company ZYX for the year ending December 31, 2014, what adjustment would need to be made to N

et Income to account for Gain or Loss in calculating cash flow from Operating Activities using the indirect method?"
COMPANY ZYX

INCOME STATEMENT

For the Year Ending 12/31/14

Net Sales $ 500,000

Cost of Sales $ 200,000

GROSS PROFIT 300,000

Operating Expenses

Research and Development 35,000

Marketing and Sales Expenses 60,000

General and Administrative Expense 21,000

TOTAL OPERATING EXPENSES 116,000

OPERATING INCOME 184,000

Gain(Loss) on sale of Equipment (30,000)

Gain (Loss) on sale of debt investment 46,000

Other Income/(Expense) (10,000)

Net INCOME BEFORE TAXES 190,000

Income Tax Expense 57,000

NET INCOME $133,000
Business
1 answer:
tresset_1 [31]2 years ago
6 0

Answer:

a) Adjustment of (16,000) in the Operating Section

Explanation:

The adjustment required in the operating activities section of the cash flow statement is shown below:

Loss of sale of equipment  $30,000

Less: Gain on sale of debt investment -$46,000

The net deduction is $16,000

Since there is a loss on sale of an equipment so the same is to be added back and there is a gain on sale of investment with respect to debt so the same is to be deducted

hence, the correct option is a.

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The net profit margin ratio can mathematically be broken down as:______.
Helga [31]

Answer:

d. Tax impact x Capital structure impact x EBIT / Sales

Explanation:

The net profit margin ratio could be computed by dividing the net income from the sales and the net income is come when the expenses are deducted from revenues

Also the capital structure is the combination of equity, preferred stock, debt.

So mainly it is broken into tax impact, capital structure impact and net profit margin ratio

Therefore the option d is correct

4 0
2 years ago
In the month of July (31 days), a company had an available balance in their deposit account of $4,126,000 and service charges of
anygoal [31]

The amount that the company owe the bank in hard dollar fees, after adjustment for earnings credit is:$1081.

<h3>Amount owe after adjustment</h3>

Using this formula

Amount owe=Service charges-(Deposit balance×(1-Reserve requirement)×ECR× Number of days/Number of days in a year)

Let plug in the formula

Amount owe = 2500 - (4126000× (1-.10)×0.45%×31/365)

Amount owe = 2500 - (4126000×.90×0.45%×31/365)

Amount owe=2500-1,419

Amount owe =$1081

Therefore the amount that the company owe the bank in hard dollar fees, after adjustment for earnings credit is:$1081.

Learn more about Amount owe after adjustment here:brainly.com/question/27489236

#SPJ1

8 0
1 year ago
What is the main challenge of career planning in changing times?
White raven [17]

The answer is option B. The main challenge of career planning in changing times is that you need to revise your plans often.

The world we live in is dynamic. New inventions, new technology, new methods of doing things always come up with time.

Because of this, when making a career plan, one must be fully aware that the process is not static. That is, changes would occur and as such, you have to revise your plans often so that it is in line with what is obtainable at the time.

<em>Read more on career planning here: brainly.com/question/6457203?referrer=searchResults</em>

5 0
3 years ago
Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would
ladessa [460]

Answer:

b.$ 66

Explanation:

The question requires that Summit requires a return on sales of 25 %. To achieve that the cost of goods sold should be 75 %.

if the revised selling price is                                         $ 88

the target cost price would be ( $ 88 * 75 %)              % 66                

7 0
2 years ago
Sarjit and Rhonda have both recently completed graduate level training in liberal arts programs. Although they studied in differ
andre [41]

Economic classes refer to the position of people on the earning ladder. For Sarjit and Rhonda, the theory that classifies them into the same economic class is that of;

  • Karl Marx

According to Karl Marx, there are two economic classes, namely, the bourgeoisie and the proletariat. The bourgeoisie are the rich and working-class members of society while the proletariats are the workers.

Given this classification, Sarjit and Rhonda belong to the same economic class of workers.

Learn more here:

brainly.com/question/731472

3 0
2 years ago
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