Is the creation of real or perceived differences in goods or services.

Determine the beginning cash balance for Sweet Treats Eats if the net cash provided by operating activities is $35,000, net cash

Nataly_w [17]

Answer:

$50,000

Explanation:

Given the following information for Sweet Treats Eats

net cash provided by operating activities = $35,000

net cash used by investing activities = $42,000

net cash provided by financing activities = $12,000

ending cash balance = $55,000

Beginning cash balance + $35,000 - $42,000 + $12,000 = $55,000

Beginning cash balance = $55,000 - $35,000 + $42,000 - $12,000

= $50,000

6 0

2 years ago

Armstrong Corporation manufactures bicycle parts. The company currently has a $18,500 inventory of parts that have become obsole

MaRussiya [10]

Explanation:

There are two alternatives

1. Sold for $6,300

The inventory parts should be sold for $6,300 as the current inventory parts are not relevant as it is a sunk cost i.e $18,500

2. Repair and after that sale it

Now in this case, we have to determine the benefit generated i.e come from

= Sale value - repairing cost

= $19,700 - $9,100

= $10,600

As we can see that the alternative 2 generated higher benefit as compare to the alternative 1 so it would be more beneficial for the company

3 0

3 years ago

A barber currently cuts hair for 50 clients per week and earns a profit. He is considering expanding his operation in order to s

bixtya [17]

Answer:

B. It depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients.

Explanation:

As the barber is currently cutting hair for 50 clients per week and earns a profit. He is now considering expanding his operation in order to serve more clients. He should expand his business by considering the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients. Marginal revenue and marginal cost has much importance here in order to make the decision. Marginal revenue is the profit which is obtained by selling one extra unit, here serving one more additional customer, whereas, the marginal cost is selling that one extra or additional unit/serving the customer. In this particular case, if the marginal revenues are greater than the marginal costs then he should definitely expand his operations, which means that move will bring more profits to his business.

5 0

3 years ago

Suppose you own 5% of Coastal Corporation's 400,000 outstanding common shares. The stock was trading for $135 per share before C

Elan Coil [88]

Answer:

number of share 30,000 share

price per share = $90

Explanation:

given data:

investor's share = 5%

outstanding share =400,000

stock split = 3/2

number of share after spliting = investor share* outstanding share* stock split

= 5%*400,000*(3/2)

= 30,000 share

per share price can be determined by using following relation:

$price\ per\ share =\frac{ outstanding\ share*\ trading\ price * investor's\ share}{ number\ of \ share\ after \ splittg}$

$= \frac{40000 *135*0.05}{30000}$

= $90

3 0

3 years ago

JBS Inc. recently reported net income of $4,750 and depreciation of $885. How much was its net cash provided (used) by operation

stepan [7]

Answer:

net cash provided is $5,635

Explanation:

Amount ($)

Net Income 4,750

Depreciation 885

Change in inventory (200)

Change in accounts payable <u> 200 </u>

Net cash flows from Operation<u> 5,635</u>

The depreciation is a none cash item that was initially deducted to get the net income, hence it is added back in the cash flows statement.

An increase in inventory represents an outflow of cash hence the negative value. The increase in trade payable is an increase in a liability representing an inflow of cash hence it is positive.

7 0

2 years ago