Answer:
a.$121,375
Explanation:
Increase in account receivable means there is more credit sales were made during the year than the cash received from the customers. So, cash will be used in the period by account recivables.
According to indirect method cash flow will be adjusted as follows
Net Income $143,124
Net Increase in Rceivables ($21,749)
( $67,072 - $45,323) <u> </u>
Cash Flow from Operating Activites <u> $121,375</u>
The quality certification that deals primarily with conformance to customer requirements is ISO <u>9000</u>; ISO <u>14000</u> is concerned primarily with the organization's effect on the environment.
<u>Explanation:</u>
A collection of global quality management and quality assurance standards designed to help businesses efficiently document the components of the quality system required to maintain an effective quality system, understood as ISO 9000. These are not industry specific, and can be extended to organizations of any scale.
The collection of specifications for environmental management generated and published by the International Organization for Standardization is known as ISO 14000 principles, which offer guidelines or structure for organizations seeking to systematize and develop their initiatives in environmental management.
Answer:
b.) $140,000
Explanation:
The computation of the segment margin is shown below:
Sales Revenue $500,000
Less: Variable Expenses ($280,000)
Contribution Margin $220,000
Less: Traceable fixed Expenses ($80,000)
Segment margin $140,000
By deducting the variable expense from the sales we can get the contribution margin and after that the fixed cost is deducted from the contribution margin so that the segment margin could come
Answer:
The formula for cash payback period is
Initial Investment/Net cash inflow from the investment
So in this case the initial investment is $40,000 and the cash flow increased by the computer is $5,000 so in order to find the cash payback period we will divide 40,000 by 5,000
40,000/5,000=8
The cash payback period is 8 years for the investment in the computer
In this case we ignored the depreciation expense as it is a non cash expense.
Explanation: