Answer:
1. Prepare an income statement for Allstar for the past month.
The income statement is given below.
Sales $ 410,000
Commission Cost ($ 50,000)
Technology Cost ($ 75,000)
R/D Cost* ($ 200,000)
Selling expenses ($ 10,000)
Admin expenses ($ 35,000)
Net profit $ 40,000
* In absence of information it is assumed that research and development costs of $200,000 meet defination of expense as per accounting standard (IAS 38).
2. Briefly explain why Allstar's income statement has no line for cost of goods sold.
As per question Allstars is a service oriented company. In services oriented company there is no good that company is manufacturing and selling. So there will not be any cost of good sold line item in income statement.
Subsidized direct loan provides interest subsidy meaning department of education pays your interest while.
<h3>What is loan?</h3>
The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest and/or finance charges to the principal value which the borrower must repay in addition to the principal balance. Loans come in many different forms. There are a number of factors that can differentiate the costs associated with them along with their contractual terms. Interest rates have a significant effect on loans and the ultimate cost to the borrower. Loans with higher interest rates have higher monthly payments or take longer to pay off than loans with lower interest rates.
Learn more about loan, refer:
brainly.com/question/22594723
#SPJ4
Check the price of the bag and see if it is equal to the money you have collected
Correct answer choices are :
A) They request a bank loan.
D) They agree to sell stocks.
E) They issue bonds.
Explanation:
Also, interest paid on bonds is a tax-deductible business investment for the organization. The problem is that interest payments generally are made on bonds even when no profits are earned. For this reason, a smaller corporation can sometimes raise much capital by issuing bonds.
Net cash flow is basically the difference of the cash balance from the beginning of the period to the end of the period. For this instance, we take sales and subtract the listed expenses.
January = 150,000 - 35,000- 20,000 -20,000 = 75,000 net cash flow
February = 175,000 - 39,000 - 25,000 - 45,000 = 66,000 net cash flow
For the change you divide (February/January) -1 or (66,000/75,000)-1= -.12
The growth in cash flow was -12%
