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2 years ago

the starting point for preparing the operating activities section using the indirect method is ______.

1 answer:

3 0

Organizations often have different operations. The starting point for preparing the operating activities section using the indirect method is Net income.

Net income is simply known to be the gross profit and removing all other expenses, costs and any other income and revenue sources that are not included in gross income.

A lot of other costs is often removed from gross to make it be at net income. They include interest on debt, taxes, and operating expenses or overhead costs.

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PB8.

Maurinko [17]

Answer:

Products Selling price Unit variable cost

$ $

Junior 50 15

Adult 75 25

Expert 110 60

Total 235 100

The sales price per composite unit = $235

The contribution margin per composite unit

= Composite selling price - Composite unit variable cost

= $235 - $100

= $135

Break-even point in units

= Fixed cost

Contribution per unit

= $114,750

$135

= 850 units

Break-even point in dollars

= Break-even point in units x Composite selling price

= 850 units x $235

= $199,750

Income Statement

Total contribution ($135 x 850 units) 114,750

Less: Fixed cost 114,750

Net profit 0

Explanation:

Sales price per composite unit is the aggregate of all the selling prices.

Contribution margin per composite unit equals composite selling price minus composite unit variable cost.

Break-even point in units is fixed cost divided per composite contribution margin per unit.

Break-even point in dollars equal break-even point in units multiplied by selling price.

Income statement is prepared by deducting the total fixed cost from the total contribution.

4 0

3 years ago

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither

sertanlavr [38]

Answer: Statement 1 ( Laptop) = Producer surplus

Statement 2 ( watch ) = Neither

Statement 3 ( jersey sweater) = Consumer surplus

Explanation:

Hi, Consumer surplus happens when the price that consumers pay for a product or service is less than the price they're willing to pay.

Even though I was willing to pay up to $46 for a jersey sweater, I bought a jersey sweater for only $39. Consumer surplus

Producer surplus is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive

I sold a used laptop for $149, even though I was willing to go as low as $140 .Producer surplus

I sold a watch for $59 on eBay last week. This week, someone offered me $145 for it. neither

Feel free to ask for more if needed or if you did not understand something.

5 0

3 years ago

List two types of cash flows an investor can expect to receive from an investment in stock. Explain the volatility of each of th

nlexa [21]

Transactions must be segregated into the three types of activities presented on the statement of cash flows: operating, investing, and financing.

5 0

2 years ago

Read 2 more answers

The audience's perception of a speaker's competence, trustworthiness, and dynamism is termed A) credibility. B) charisma. C) cha

MAXImum [283]

Answer:

A) credibility

Explanation:

Credibility can be defined as the quality of being trusted and believed in.

The audience have been able to perceive the competence, trustworthiness and the dynamism of the speaker, and these are the criteria to judge credibility.

4 0

3 years ago

On January 1, 2016, Miller Corporation had retained earnings of $8,000,000. During 2016, Miller reported net income of $1,500,00

Papessa [141]

Answer:

Miller's retained earnings on December 31, 2016 is $9,000,000.

Explanation:

Miller's retained earnings on 31 December 2016 = retained earnings on January 1, 2016 + net income - declared dividends

= $8,000,000 + $1,500,000 - $500,000

= $ 9,000,000

Therefore, Miller's retained earnings on December 31, 2016 is $9,000,000.

4 0

2 years ago