4. In the absence of

Year 1 Year 2 Amounts billed to clients for services rendered $ 182,000 $ 232,000 Cash collected from clients 154,000 184,000 Ca

Advocard [28]

Answer:

Explanation:

Year 1:

Cash collected from clients $154,000

Salaries paid to employees for services rendered during the year $27,000

Utilities $84,000

Purchase of insurance policy $58,200

So, in order to find net cash flow, $(154000-27000-84000-58200)=-15200

Year 2:

Cash collected from clients $184,000

Salaries paid 34000

Utilities paid 94000

Insurance paid is 0

So, net cash flow $184000-$(34000+94000)=$56000

Year1 paid 27000 in salaries, accrued =32000

So still 5000 has to be paid in year 2

Year 2 paid 34000 ⇒ so accrued is 29000

Insurance accrued for each year is 58200/3=19400

Income statement for year 1 and 2

year1 year2

Revenue:

Income from services 182000 232000

Expense

Salary 84000 94000

Utilities 32000 29000

Insurance 19400 19400

Net income 46600 89600

5 0

3 years ago

Read 2 more answers

What motivates people to comparison shop?

mestny [16]

D)the desire to get the most for their money.

6 0

3 years ago

Ashley opened an all-you-can-eat buffet restaurant. the price per-person was based on what ashley believed an average restaurant

Rudiy27

In the insurance market, this is referred to as adverse selection. Adverse selection is simply just a situation where the seller has information that the buyer does not have about an aspect of the product or its quality, or vice versa. When it comes to insurance, adverse selection is the likelihood of those who preform dangerous jobs or are high risk to get life insurance.

7 0

3 years ago

Read 2 more answers

At December 31, 2018, before any year-end adjustments, Bramble Company's Insurance Expense account had a balance of $2620 and it

zhuklara [117]

Answer:

Adjusted balance of Insurance Expense A/c = $2,800

Explanation:

There is some insurance expense already charged amounting $2,620

Further out of prepaid insurance the expense for the period = $2,800

This shall also be charged to expense as relates to current period.

Therefore, total expense for the period shall be $2,620 + $2,800

For this, entry will be:

Insurance expense A/c Dr. $2,800

To Prepaid Insurance A/c $2,800

Therefore, net adjusted balance of insurance expense = $2,620 + $2,800 = $5,420

5 0

3 years ago

Match the following terms to the correct definition. The maximum expected output capability of a resource or system. An approach

tamaranim1 [39]

Answer:

The maximum expected output capability of a resource or system. - Is the definition of Design Capacity.

An approach to a firm's acquisition of resources that will either lead, lag, or track the customer demand. - Is the definition of Capacity Expansion Strategy.

A capacity acquisition strategy where expansion takes place before the demand materializes and never falls behind the capacity growing requirements. - Is the definition of Lead the Demand.

The expected output capability of a resource or system after accounting for scheduled down time (like for maintenance).- Is the definition of Effective Capacity.

A capacity acquisition strategy where expansion takes place only after the demand materializes and never exceeds the demand. - Is the definition of Lag the Demand.

5 0

3 years ago