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riadik2000 [5.3K]
3 years ago
8

A company's income statement showed the following: net income, $132,000; depreciation expense, $39,000; and gain on sale of plan

t assets, $13,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,200; merchandise inventory increased $27,000; prepaid expenses increased $8,000; accounts payable increased $5,200. Calculate the net cash provided or used by operating activities.
Business
1 answer:
fomenos3 years ago
8 0

Answer:

Net Cash provided (used by) operating activities $139,400

Explanation:

The computation of the net cash provided or used by the operating activities is as follows"

Cash flow from operating activities

Net Income     $132,000  

Adjustments:  

Add Depreciation expense $39,000  

Less: Gain on sale of plant assets ($13,000)  

Add: Decreased in accounts receivables $11,200  

LesS: Increase in inventory ($27,000)  

Less: Increase in prepaid expense ($8,000)  

Add: Increase in accounts payable $5,200  

Net Cash provided (used by) operating activities $139,400

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kakasveta [241]

The accounts and amounts that will be reported on the company's balance sheet as pension assets are:

1. Pension Plan Assets: The amount reported will be equal to the projected benefit obligation of the company.

2. Accrued Pension Benefit Liability: The amount reported will be equal to the difference between the projected benefit obligation and the pension plan assets.

The Pension Plan Assets account will be reported as the current market value of the pension plan assets.

The Accumulated Benefit Obligation account will be reported as the projected benefit obligation, which is the current value of the benefits that will be owed to employees in the future.

The difference between these two amounts is the company's net pension assets or liabilities.

For example, if the projected benefit obligation is $3 million and the pension plan assets are $2.5 million, the net pension assets would be reported as a liability of $0.5 million.

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3 0
1 year ago
Currency traders buy on margin so they can do which of the following
Andreyy89
So they can gain profits with their choosen currencies, if the currency that they choose, raising, they gain profits
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4 years ago
Suppose that MUX = Y and MUY = X. The prices of good X and good Y are $5 and $4, respectively. How many units of good X does the
bagirrra123 [75]

Answer:

She consumes 41 units of good X.

Explanation:

Utility Maximization:

The maximum utility that a consumer derives from the use of a specified amount of a good or service.

Consumer M aximise the utility when following condition is satisfied.

MUx / MUy = Px / Py

Y / X = 5 / 4

4Y = 5X

According to given sitation the budget constraint is

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5X + 4Y = 410

Using 4Y = 5X

thus, 5X + 4Y = 410

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6 0
3 years ago
A movie studio has some costs it incurs even if it produces no movies at all in a given year. Think of these as the costs of hav
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Explanation:

Part 1 : <u>True</u>, from the details provided about the movie studio total cost last year indicates after substractions of the differences in total

3rd movie cost - 2nd = 132-84 = 48 million

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Assume that a firm's Foreign Direct Investment (FDI) strategy has a required rate of return of 20% p.a. The initial investment i
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Answer:

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