Answer:
D. Cash flow statement
Explanation:
A cash flow statement refers to a financial statement which is used to record and summarize the amount of liquid assets (cash and cash equivalents) entering and leaving a business entity.
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Hence, if you want to make sure a company has enough money available to pay its bills, the financial statement which would be most helpful is the cash flow statement because it is used to measure and analyze how well the company is doing financially in terms of generating revenue to pay its bills and debts.
Answer:
amount of tax saving is $4320
Explanation:
given data
tax deduction = $18000
marginal tax rate = 24%
effective tax rate = 20%
to find out
amount of tax saving
solution
we know tax saving formula that is
tax saving = tax deduction × marginal tax ........................1
so now put here all value in equation 1
tax saving = tax deduction × marginal tax
tax saving = 18000 × 24%
tax saving = 18000 × 0.24
tax saving = 4320
so amount of tax saving is $4320
Answer:
Net Income 193,000
Non-monetary terms:
Depreciation expense 25,000
amortization expense 10,000
gain on disposal <u> (7,000) </u>
Adjusted Income 221,000
Change in Working Capital:
Increase in A/R (27,000)
Decreasein Inv 17,000
Increase in Prepaid (5,000)
Increase Accrued /P 11,000
Decreasein A/P (6,000)
Change In Working Capital (10,000)
From Operating Activities 211,000
Investing
Sale of Equipment 47,000
Financing
Bonds Issued 60,000
Cash Flow 318,000
Beginning Cash 99,000
Cash Flow 318,000
Ending Cash 417,000
Explanation:
We first remove the non.monetary concetps from the net income.
Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account
Increase in asset and decrease in liabilities represent cash outflow
while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)
Answer:
$173,820
Explanation:
pretax financial income $616,000
- interest income on municipal bonds ($78,400)
+ depreciation ($67,200 - $50,400) = $16,800
+ fine for dumping hazardous materials $25,000
taxable income = $579,400
income taxes payable = $579,400 x 30% = $173,820
Fines are not tax deductible, and since depreciation for tax purposes is lower than accounting depreciation, you must add them. But since municipal bonds are not taxable, they must be subtracted.
