Answer:
b. Operating activities
Explanation:
As we know that there are two methods of cash flow statement. The one method is direct method and the other one is indirect method
Also the financing activities and the investing activities should be same calculated under both the methods
But the operating activities would be calculated differently under both the methods
In the direct method, the cash receipts and cash payment would be adjusted while an indirect method, the changes in working capital would be adjusted
Therefore the option b is correct
Answer:
The company must sell 800 units in order to earn the target.
Explanation:
This question requires us to calculate number of units required to be sold in order to acheive target profit. The answer can be calculated using simple break even calculation methodology.
To find number of units required to be sold we will divide sum of fixed cost and pre tax profit with contribution per unit.
Requires Sales = <em>(Fixed Cost + Pre tax profit)/ Unit contribution</em>
= (15,000+ (20,000/80%))/ 50 = 800 units
Answer:
Knit units = 1,600
Hard units = 400
Explanation:
The calculation of sold of knit hats and hard hats is shown below:
For computing the sold of knit hats and hard hats first we need to find out the total of Knit Hats and Hard Hats and secondly we need to find out the Break even sales in units
Knit Hats Hard Hats Total
Sales a $15.00 $25.00
Less: Variable
Expenses b $5.00 $10.00
Contribution Margin $10.00 15.00
c = a - b
Weight d 0.80 0.20
Weighted Contribution 8.00 11.00
e = c × d
Now,
Break even sales in units = Fixed cost ÷ Contribution margin per unit
=$22,000 ÷ 11
= 2,000 units
So,
Knit Hats to be sold = Break even sales in units × Knit percentage
=2000 × 80%
= 1,600 units
Hard Hats to be sold = Break even sales in units × Hard hats percentage
= 2,000 × 20%
= 400 units
Hi there
Worth of merchandise after purchase returns
4,000−275=3,725
Worth of merchandise after cash discount
3,725+3,725×0.02=3,799.5
Add the transportation cost to the cost of merchandise to get total amount paid for this merchandise
3,799.5+350=4,149.5
Good luck!
Answer:
Unrealized gain $2,500
Explanation:
The computation of the unrealized loss or gain is shown below:
Gain = Fair value - book value
Loss is opposite of gain i.e
Loss = Book value - fair value
where,
Fair value is $80,000
And, the book value is
= Cost of trading securities portfolio - credit balance
= $100,000 - $22,500
= $77,500
So, the unrealized gain is
= $80,000 - $77,500
= $2,500
This is the answer and the given options are wrong
