It is important so no one in the agreement screws the other person over
Answer:
C. Net income and stockholders' equity are both overstated.
Explanation:
In the income statement , ending inventory is deducted from the addition of the beginning inventory and net purchases to arrive at the cost of goods sold. Therefore, the cost of goods can be stated as an equation stated as follows:
Cost of goods sold = Beginning inventory + Net purchases - Ending inventory
From the above equation, it can be observed that if the ending inventory is overstated, cost of goods sold will be understated by that amount.
Since gross income is determined by deducting cost of goods sold from the net sales, an understated cost of goods sold will result in an overstated gross income and subsequently overstated net income.
Since net income is one of the components of the stockholders' equity, an overstated net income will leads to an overstated stockholders' equity.
Therefore, the correct option is C. Net income and stockholders' equity are both overstated.
Answer:
The net cash movement is -$19 million, this means that the firm is facing liquidity challenges.
Explanation:
Movement of Cash during the year :
Net cash flow from operating activities -$89 million
Net cash flow from investing activities $42 million
Net cash flow from financing activities $28 million
Movement during the year -$19 million
Conclusion,
The net cash movement is -$19 million, this means that the firm is facing liquidity challenges.
Answer:
C-both the direct method and the indirect method.
Explanation:
When you want to calculate net cash flows from operating activities, you only consider cash inflows and outflows. This means that changes in accounts receivable, inventories and other prepaid expenses must be adjusted, as well as accounts payable and any other non-cash expenses like depreciation or amortizations.
The elements of a brand that cannot be spoken are called the brand mark.
Every band has its properties and elements such as the brand name and
brand equity which can be spoken to describe what the brand is all about.
These elements are usually unique and helps to describe the brand and its
operations.
However , the brand mark is like a logo and contains pictorial properties
which can be seen.
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