A ground-dwelling plant grows along a chain-link fence

For the past year, Kayla, Inc., has sales of $44,432, interest expense of $3,074, cost of goods sold of $14,909, selling and adm

ryzh [129]

Answer:

$14,439.8

Explanation:

The computation of operating cash flow is shown below:-

The operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,

EBIT = Sales - cost of good sold - depreciation expense - selling and administrative expense

= $44,432 - $14,909 - $4,965 - $10,816

= $13,742

Tax expenses = ( Earnings before interest and tax - interest expenses ) × tax rate of 40%

= ($13,742 - $3,074) × 40%

= $10,668 × 40%

= $4,267.2

So, the operating cash flow

= $13,742 + $4,965 - $4,267.2

= $14,439.8

7 0

2 years ago

Joe Donney operates a roller skating center. He has just received the monthly bank statement at August 31 from Citizens National

dlinn [17]

Answer:

Donney actually have $1,577 at August 31, 2014

Explanation:

Prepare a Bank reconciliation to determine the accuracy of the Cash Balance using the following steps

Step 1

Update the Cash Book (Bank Column) Balance

Cash Book (Bank Column)

Debit :

Balance as at August 31 $1,620

Rent collection $375

Total $1,995

Credit :

Service charge $9

Dishonored Checks $137

Printing Charge $20

Error : Understatement $252

Balance as per updated CB $1,577

Total $1,995

Step 2

Prepare a Bank Reconciliation Statement

Bank Reconciliation Statement as at August 31

Balance at Bank as per updated Cash Book $1,577

Add Unpresented Checks $756

Less Lodgements not yet credited ($1,695)

Balance as per Bank Statement $638

Conclusion :

Now that we have reconciled the Updated Cash Balance of $1,577 to the Bank Statement we can safely say Donney actually has $1,577 cash at August 31, 2014.

3 0

2 years ago

Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholde

zimovet [89]

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $24,000 (600 shares × $40)

To Common Stock $600 (600 shares × $1)

To Additional Paid-in Capital in excess of par - Common Stock $23,400

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

2. Cash A/c Dr $4,400 (100 shares × $44)

To Common Stock $100 (100 shares × $1)

To Additional Paid-in Capital in excess of par - Common Stock $4,300

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

6 0

2 years ago

Select the correct answer. Which actions should a company take if its product/brand falls under the BCG Matrix category of “dog”

andriy [413]

Answer:

A

Explanation:

While dealing with a DOG situation, it is best to disinvest in the product and focus on other products with greater market potential

7 0

3 years ago

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,

Margaret [11]

Answer:

36.26%

Explanation:

Simple rate of return:

return/investment

return:

In this case, it will be the cost saving for the new machine: 161,000

investment

We will decrease the investment by the recovery from the old machine.

468,000 new machine - 24,000 salvage value of new = 444,000

Then, proceed to calculate:

161,000/444,000 = 0.3612 = 36.26%

Consideration:

Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.

3 0

2 years ago