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ollegr [7]
3 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]3 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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Answer:

1/4

Explanation:

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MPC = 15/60 = 1/4

If allowance is made for crowding out, the new estimate will be larger.

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3 years ago
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assem
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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The predetermined overhead rates:

Assembly= $22 per direct labor-hour

Testing & Packaging= $18.00 per direct labor-hour

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Testing & Packaging:

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1) To calculate the total manufacturing cost, first, we need to allocate overhead. To do that, we need direct labor hours for each department.

<u>Assembly:</u>

Direct labor hours= 228/24= 9.5

<u>Testing:</u>

Direct labor hour= 132/24= 5.5

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 22*9.5 + 18*5.5= $308

Total manufacturing cost= direct material + direct labor + allocated overhead

Total manufacturing cost= (390 + 45) + (228 + 132) + (308)= $1,103

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6 0
2 years ago
When a company maintains its price but removes or prices separately one or more elements that were part of the former offer, suc
fomenos

The name which is given to the process when a company maintains its price but removes or prices separately is known as E. unbundling

<h3>What is Price?</h3>

This refers to the attached value which is given to a good or service that is exchanged for that particular value.

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During 2014 and 2015, Danny pays property taxes of $3,500 each year on a piece of land. During 2014, the land is vacant and unpr
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Answer: the answer is C deduct $3500 each year.

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Red and White Company reported the following monthly data: Units produced 2,400 units Sales price $ 29 per unit Direct materials
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