Answer:
Receipts of cash from sales.
Explanation:
Operating activities in the cash flow statement refers to that statement in which the cash sales, cash payments are recorded. These transactions are recorded when the company use the direct method and for an indirect method the other things should be considered as changes in working capital, depreciation expenses, profit and loss on sales of fixed assets, etc
Therefore the last option is correct
Answer:
Within 2 years
Explanation:
1st year of Sam's business:
Operational expense = $30,500
Profit = $45,000
Business set up costs = $49,500
Overall business profit (Loss) = $(4,500)
2nd Year of Sam's business:
Since the profit will be increased by 5.5%, the new profit after operational expenses will be $45,000 + $(45,000 x 5.5%) = $47,475
Therefore, the overall profit = Last year's loss + This year's profit = $(-4,500+47,475) = $42,975
Therefore, he can achieve the overall profit within 2 years' of operation.
Answer:
Q. Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
February 2018 $90,000, March 2018 92,000, April 2018 101,000, May 2018 98,000, June 2018 99,500.
Answer) $440,775
Explanation:
Cash payments to be made in 2018 for the purchases given in question are:
Feb 2018 Mar 2018 Apr 2018 May 2018 June 2018
Cash Payments
65% of $90,000 58,500
30% of $90,000 27,000
5% of $90,000 4,500
65% of $92,000 59,800
30% of $92,000 27,600
5% of $92,000 4,600
65% of $101,000 65,650
30% of $101,000 30,300
5% of $101,000 5,050
65% of $98,000 63,700
30% of $98,000 29,400
65% of $99,500 64,675
Total $58,500 $86,800 $97,750 $98,600 $99,125
Total payments in 2018=$440,775
(58,500+86,800+97,750+98,600+99,125)
B) Sales Budget is the answer.
