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schepotkina [342]
3 years ago
10

Use the following information to perform the calculations below (using the indirect method).

Business
1 answer:
daser333 [38]3 years ago
7 0

Answer:

a) cash flow from operating activities

net income $650,000

adjustments:

depreciation expense $96,000

accounts payable $38,000

accounts receivable -$22,800

inventory -$57,000

prepaid insurance -$8,400

net cash flow from operating activities $695,800

b) cash flow from investing activities

Sale of long term investments $57,500

Purchase of long term assets -$610,000

Long term assets exchanged for common stocks $113,000

net cash flow from investing activities -$439,500

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Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product I49V
Pavel [41]

Answer:

c

Explanation:

3 0
3 years ago
Which is an example of someone who is cyclically unemployed?
Korolek [52]

Answer:

<em>A. autoworker who is temporarily laid off from an automobile company because of a decline in sales. </em>

Explanation:

Cyclical unemployment is <em>unemployment that occurs when full employment can not be met by the aggregate demand for goods and services in an economy.</em>

This takes place during times of decreased economic growth or times of economic slowdown.

Cyclical unemployment is directly linked to the degree of macroeconomic behavior, which is the combined or collective activity of all economically involved individuals and entities.

Instead of linear, this overall trend is cyclical-economic activity tends to increase and fall rather than always rising or falling.

7 0
3 years ago
Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the poo
allochka39001 [22]

Answer:

Results are below.

Explanation:

<u>To calculate the activities rates, we need to use the following formula on each pool:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Pool 1= 20,000/10,000= $2 per direct labor dollar

Pool 2= 15,000/50= $300 per setup

Pool 3= 10,000/200= $50 per hour

<u>Now, we can allocate costs to each product:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product A:

Pool 1= 2*4,000= 8,000

Pool 2= 300*20= 6,000

Pool 3= 50 *50= 2,500

Total allocated costs= $16,500

Product B:

Pool 1= 2*6,000= 12,000

Pool 2= 300*30= 9,000

Pool 3= 50 *150= 7,500

Total allocated costs= $28,500

8 0
3 years ago
Airborne Airlines Inc. has a $1,000 par value bond outstanding with 10 years to maturity. The bond carries an annual interest pa
yanalaym [24]

Answer:Yield to maturity is 9.59%;  After tax cost of debt =7.672%

Explanation:

 A)   Yield to maturity ={ C + (FV-PV)/t} /  {(FV +PV)/2}

Where C – Interest payment    = $90

FV – Face value of the security

= $1000

PV – Present value/curent market value = $960

t – years it takes the security to reach maturity= 10 years

imputing the values and calculating,

yield to maturity ={ C + (FV-PV)/t} /  {(FV +PV)/2}

= $90 + (1000-960)/10} / 1000 + 960 /2

$90 + 4= $94 /980= 0.0959

therefore Yield to maturity is 9.59%

B)   After tax cost of debt =    Yield To Maturity  x (1 - tax rate)

=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =

9.59 % x 80%=7.672%

4 0
3 years ago
On January 1, 2016, Ott Company sold goods to Fox Company. Fox signed a noninterest-bearing note requiring payment of $60,000 an
inessss [21]

Answer:

D. 321,600.

Explanation:

Present value is the current value of a future amount that is to be received or paid out.

Given:

Present value, P = $60000

Present value of ordinary annuity for the remaining 6 years = 4.36

The Present value, PV of the note is equal to the first payment + the Present value of ordinary annuity (all at 10%) of the remaining six payments

Sales revenue = $60000 + (60,000 × 4.36)

= $60000 + $261,600

= $321,600

Thus, sales revenue of $321,600.

3 0
3 years ago
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