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3 years ago

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Business

1 answer:

Allisa [31]3 years ago

3 0

Answer:

Net Increase in cash = $124,200

Explanation:

Note: The correct value for Year 2021 inventory is $510,300 not $10,300.

Also note: See the attached excel file for the statement of cash flows for 2022.

In the attached excel file, the following workings are used:

Workings:

w.1: Increase in accounts receivable = Account receivable in 2022 - Account receivable in 2021 = $237,600 - $205,200 = $32,400

w.2: Decrease in inventory = Inventory in 2022 - Inventory in 2021 = $450,900 - $510,300 = -$59,400

w.3: Decrease in accounts payable = Accounts receivable 2022 - Accounts receivable 2021 = $105,300 - $116,100 = -$10,800

w.4: Disposal of land = Land in 2021 - Land in 2022 = $270,000 - $216,000 = $54,000

w.5: Purchase of equipment = Equipment in 2022 - Equipment in 2021 = $702,000 - $540,000 = $162,000

Download xlsx

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Carlos opens a dry cleaning store during the year. He invests $30,000 of his own money and borrows $60,000 from a local bank. He

aksik [14]

Answer:

$6,000

Explanation:

Since the main the activitity of Carlos' business is dry cleaning services, but not a trade in or business in holding real property, he is only is at risk for $30,000 which is personal money

Therefore, the total of $24,000 will be deducted in the first year while the remaining $6,000 will be deducted in the second year to have a total of $30,000 which is his personal risk.

Therefore, for the second year, Carlos can deduct $6,000 of the loss.

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3 years ago

Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no b

Sveta_85 [38]

Answer:

$136

Explanation:

Date Transaction Units Cost Total

3 Purchase 5 $20 $100

10 Sale 3

17 Purchase 10 $24 $240

20 Sale 6

23 Sale 3

30 Purchase 10 $30 $300

using the first in, first out method, the COGS is calculated based on the oldest price of the units in merchandise inventory:

6 units were sold on May 20th, 2 of them costed $20 (May 3rd purchase) per unit = $40, while 4 of them costed $24 (May 17th purchase) = $96. Total COGS = $40 + $96 = $136.

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3 years ago

On January 1, Kirk Corporation had total assets of $425,000. During the month, the following activities occurred: Kirk Corporati

nadya68 [22]

Answer:

$428,000

Explanation:

The only movement that impact the total assets it's:

Kirk Corporation acquired equipment costing $3,000, promising to pay cash for it in 60 days.

Due to the equipment was finance by the supplier by 60 days it has a positive impact on assets and liabilities.

The others transactions:

Kirk Corporation purchased $1,750 of supplies for cash, it has no impact because the supplies was paid with cash, so the impact on assets is zero.
The land had cost $7,500 and it was sold for $7,500 cash. The land it's a long term assets that was sold for cash, so it was converted to current assets in money.
Kirk Corporation signed an agreement, the impact it's in the next month, so it has no impact the current month analized.

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4 years ago

A company that uses a job order costing system would make the following entry to record the flow of direct materials into produc

jonny [76]

Answer:

debit Work in Process Inventory, credit Raw Materials Inventory.

Explanation:

For reasons of accounting principles, the physical inventory must have priority to that of the continuous method; since the first constitutes information of greater objectivity and can therefore serve as a reference point to determine if there are missing or surpluses in the inventories, which after being well purified, can be adjusted through the cost of sale account and the inventory account accordingly if the permanent inventory turns out to be greater than the physical one, the cost of sale account must be debited for the amount of the difference, while the inventory account will receive a credit for the same value.

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3 years ago

What is the equity beta for a firm with asset beta equal to 0.9, and D/E ratio of 0.4, and tax rate equal to 35%?

NNADVOKAT [17]

Answer:

the equity beta of the firm is 1.134

Explanation:

The computation of the equity beta is shown below:

Equity beta is

= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]

= 0.9 × [1 + (1 - 0.35) × 0.4]

= 0 9 × 1.26

= 1.134

Hence, the equity beta of the firm is 1.134

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0

3 years ago