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3 years ago

Partial balance sheets and additional iformation are listed below for Sowell Company.

Business

1 answer:

musickatia [10]3 years ago

3 0

Answer and Explanation:

The preparation of the operating activities section is presented below

Cash Flows from operating activities

Net Income $88,000

Adjustment made for non cash items:

Depreciation Expense $19,000

Add: Decrease in Account Receivable $15000 ($70,000 - $85,000)

Less: Increase in Inventory $(5000) ($40,000 - $35,000)

Less: Decrease in accounts payable $(8000) ($54,000 - $62,000)

Net cash flows from operating activities $109,000

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Use the following information to answer Questions 12 - 15. Below is selected data for Gertup Corporation as of 12/31/05: Gertup

alukav5142 [94]

Answer:

the cash that should be freed up is $267

Explanation:

The computation of the cash that would be freed up is shown below:

As we know that

The inventory turnover is

= Cost of goods sold ÷ average inventory

12 = $14,800 ÷ average inventory

So, the average inventory is 1,233

Now the cash that should be freed up is

= 1,500 - 1,233

= $267

hence, the cash that should be freed up is $267

4 0

3 years ago

What is the difference between a public and a private corporation?

viva [34]

The principal difference between public and privately held companies is that public companies have shares that can be publicly traded on a stock market. A privately held company might become a publicly held company by conducting an initial public offering, which is the offering of shares of the company to the public.

6 0

4 years ago

You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cas

Triss [41]

Answer:

The correct answer is $1,800,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Net working Capital = Current Assets - Current Liabilities

Where,

Current Assets = cash and marketable securities + accounts receivable + inventory

Current Assets = $400,000 + $1,200,000 + $2,100,000 = $3,700,000

And Current Liabilities = accrued wages and taxes + accounts payable + notes payable

Current Liabilities = $500,000 + $800,000 + $600,000 = $1,900,000

So, Net Working Capital = $3,700,000 - $1,900,000

= $1,800,000

8 0

3 years ago

A bond has a standard deviation of 10.7 percent and an average rate of return of 6.4 percent. What is the coefficient of variati

kirill [66]

Answer:

CoV = 1.671875 rounded off to 1.67

Explanation:

The coefficient of variation (CoV) is a measure of volatility of an investment. It tells the volatility in comparison with the expected return from the investment. We can say that the CoV tells us the risk per unit of return as CoV is calculated by dividing standard deviation, which is a measure of risk, by the expected return of the investment.

CoV = SD / r

Where,

SD is the standard deviation
r is the expected return

CoV = 0.107 / 0.064

CoV = 1.671875 rounded off to 1.67

8 0

3 years ago

A marketing manager has just estimated that her firm's marginal revenue will become negative if a proposed price cut is made.

Viktor [21]

Answer:

D. More Units may be sold - but total revenue will be less than it would be at the higher price

Explanation:

Marginal Revenue (MR) represents the additional revenue that can be obtained if sales of a product are increased by one unit.

MR= is change in Total Revenue/Change in Total Output Quantity

In this situation as envisaged by the Marketing Manager, a price cut will lead to an increase in revenue based on more (marginal) units of the product sold at a lower price. The challenge, however, is that this increase in income will not be enough to offset the decrease in revenue that will result as a result of the price cut.

In other words, the organisation is better off selling fewer products or units at its current price than sell more (marginal units) at a reduced price.

7 0

3 years ago