Answer:
%change is sales= 150% increase
Explanation:
Giving the following information:
Sales:
$560,000, $670,000 and $1,675,000 in the years, 2014, 2015, and 2016, respectively.
<u>Performing a horizontal analysis, we will take 2015 as the base year.</u>
<u />
%change is sales= (2016 - 2015)/2015
%change is sales= [(1,675,000 - 670,000)/670,000]*100
%change is sales= 150% increase
Answer:
Assets that are greater than its liabilities.
Answer:
Debit Advertising expense $916.67
Credit Prepaid Advertising $916.67
Being entries to recognize advertising expense incurred for 5 months.
Explanation:
When an amount is paid in advance, the entries posted are
Debit Prepaid Advertising
Credit Cash account (with the amount prepaid)
As the expense is incurred, entries required would be
Debit Advertising expense
Credit Prepaid Advertising (with the amount incurred)
Expense incurred in 5 months
= 5/6 × $1100
= $916.67
Hence the entries required will be
Debit Advertising expense $916.67
Credit Prepaid Advertising $916.67
Being entries to recognize advertising expense incurred for 5 months.
Answer:
The Net cash is 436.000
Explanation:
To get net cash flow using the indirect method we must make adjustments to the net income.
It depends on the account if it is added or subtracted to net income
In this case,
Net income 400.000
Adjustment to reconcile the net income to cash
- Accounts receivable increase (40.000)
+ Depreciation expense 80.000
+ Prepaid expenses decrease 12.000
- Gain on sale of machinery (20.000)
+ Accounts payable increase 6.000
- Wages payable decrease (2.000)
Net cash 436.000
Answer: Surplus
Explanation: Surplus or as commonly referred to producer surplus is the amount of utility satisfaction that a producer gets in making a sale of a good or service produced. It is calculated by subtracting the price that a producer is willing to accept from the price he or she actually receives in exchange for that commodity from the consumers.
