Answer:
a. $0
b. $31,620
Explanation:
a. Notes Payable do not fall under Operating activities in the cashflow statement but rather under Financing Activities which is where cash transactions that provide the business with capital and liability funds are accounted for.
The Operating activity balance from this is therefore $0.
b. The liabilities will include the Note and the interest accumulated at year end.
Interest accumulated = 30,600 * 8% * 5/12 months = $1,020
Liabilities = 30,600 + 1,020 = $31,620
<span>(C) "In addition, it introduces a policy to provide free education
to all children up to grade 10." This step is aimed at producing more
skilled labor. I hope this helps you! <3</span>
Answer:
The answer is: C
Explanation:
This costing question assesses the stages of completion of inventory during the manufacturing process. The significant point of information is: all materials are added at the beginning of the process, meaning at the end of the period, materials are fully complete, that is, no more materials will be added to the ending work in process. However, the conversion costs are yet to be fully utilised. In this case, equivalent units (partial units computed as completed units for purposes of costing at the end of a financial period) will have to be calculated to reflect the stage of completion.
Materials cost: 5000 units at 100% completion yields 5000 units for costing
Conversion costs: 5000 units at 20% conversion completion is equal to: 5000*0.2= 1000 equivalent units
The costing calculation for ending work in process is as follows:
Materials cost: 5000 units at $5.00 per unit = $25,000
Conversion cost: 1000 units at $3.00 per unit = $3000
The total cost for ending work in process is the sum of the materials cost and conversion cost = $28,000
Answer:
Effect on income= $120,000 loss
Explanation:
Giving the following information:
Sales $320,000
Variable costs $200,000
Fixed costs $140,000.
None of the fixed costs are avoidable. Therefore, they shouldn't be taken into account to make the decision.
Effect on income= Sales - varaible cost
Effect on income= 320,000 - 200,000= $120,000 loss
That is known as a cash flow statement.
