Answer & Explanation:
<u>a.- Revenues: </u>Increase for 3.2 millions
It will be recognize for the entire order, as it was deliveried entirely within the accounting period.
<u>b.- Earnings: </u> Increase for 1.5 millions
The earnings for the business will be the net between the revenues and expenses.
3.2 revenues - 1.7 expenses = 1.5 earnings
<u>c.- Receivables: </u> Increase for 1.8 millions
It will increase for the unpaid portion ofthe order.
<u>d.- Inventory</u> Decrease for 1.7 millions
It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.
<u>e.- Cash:</u> Increase for 1.4 millions
It will increase for the amount received from the customer. As it was no payment from the business in the transaction.
Answer:
Revenue for Smart Suiting is $521,306.
Explanation:
Revenue is the business operational source of finance. IFRS has made standards for revenue recognition which need to be followed by all organizations. The revenue should be calculated after deducting trade and cash discounts. If there is any sales return it should be deducted from the gross revenue figure. Net revenue should be reported in the Income Statement.
<span>Ans : Unanticipated inflation benefits debtors at the expense of creditors. The statement is True.
When the inflation is unexpectedly high, the Real Interest Rate is lower than anticipated thats why it hurts lenders but benefits borrowers.</span>
Answer:
incremental after tax cash flow for 2011: $1,145,000
Explanation:
Additional revenue $2,500,000
Cash operating expenses ($700,000)
Depreciation and amortization expenses ($300,000)
<u>Reduced inventories ($200,000)</u>
Pretax income $1,300,000
<u>Less taxes 35% ($455,000)</u>
Net income $845,000
<u>Add Depreciation and amort. expenses $300,000</u>
Free cash flow $1,145,000
Answer: Telephone calls
Explanation: To communicate to senior citizens telephone will be the most effective way as other sources like social media are not used by senior citizens in general, majority of users of social sites are youth and teens. Other sources like emails and text messages may not result in full information takeout. Therefore,other than face to face communication, the best electronic medium is telephone.
