Answer:
$2.46 million.
Explanation:
Profit before tax:
= Sales - Variable costs - Depreciation
= $7.20 - $4.20 - $1.20
= $1.80 million
Net income = Profit before tax - Tax
= $1.80 million - (30% × $1.80)
= $1.80 million - $0.54 million
= $1.26 million
(1) Adjusted accounting profits method:
= Net income + Depreciation
= $1.26 + $1.2
= $2.46 million
(2) Cash inflow/Cash outflow method:
= Sales - Cash expenses - Tax
= 7.2 - 4.2 - 0.54
= $2.46 million
(3) Depreciation tax shield method:
= [(Sales - Costs) × (1-Tax rate)] + (Depreciation × Tax rate)
= [(7.2 - 4.2) × (1 - 30%)] + (1.20 × 30%)
= $2.46 million
Therefore, operating cash flow from all the three method is $2.46 million.
Answer:
a. an increase in demand and supply of this drug.
Explanation:
- As the tastes and the preference of the customers for the particular product increase in the demand of the sale and the purchase of the illegal drug will rise up.
- <u>As explained by the economist is know as what is called as the shift in demands and supply of the drug tends to rise in prices of the drug.</u>
This is true. An increase in the reserve requirement is put in place to prevent inflation. This is what you call a contractionary policy or a restrictive monetary policy. When this happens, the amount of reserves increases and the money supply decreases because liquidity is reduced.
Answer:
price variance 3,940 U
quantity variance 2,800 F
Explanation:
DIRECT MATERIALS VARIANCES
std cost $7.00
actual cost $7.10
quantity 39,400
difference $(0.10)
price variance $(3,940.00)
The difference between std cost and actual cost is negative, we purchased at a higher cost. the variance is unfavorable.
std quantity 39,000.00 (7,800 manufactured units x 5 lbs per unit)
actual quantity 39,400.00
std cost $ 7.00
difference -400.00
quantity variance $ (2,800.00)
We used more lbs than our standard for the output. This means we are not efficient in the use of materials. this variance is unfavorable as well
Answer:
a) $19610 credit
Explanation:
Given: Accounts receivables as on Dec 1, 2017 = $12770
Credit sale during the month = $34200
Collections during the month = $27360
Accounts Receivable balance at the end of the month = Opening Accounts Receivable balance + credit sales during the month - cash collected during the month
= $12770 + $34200 - $27360
Accounts Receivable balance as on Dec 31, 2017 = $19610 credit