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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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Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of t

statuscvo [17]

Answer:

The standard cost is $5 per lbs

each units uses 2 lbs, so the unit stadard cost is $10

Explanation:

Volume variance

$(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: efficiency \: variance$

std quantity 2800.00 (1,400 units times 2 pounds per unit)

actual quantity 3000.00

std cost ??

$(2,800-3,000) \times standard \: cost = -1,000$

difference -200.00

efficiency variance $(1,000.00)

-200 x Std cost = -1,000

Standard cost = -1,000/-200 = 5

The standard cost is $5 per lbs

each units uses 2 lbs, so the unit stadard cost is $10

3 0

3 years ago

Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $10,000 cash and business inventory ($20

kicyunya [14]

Answer:

1. Mr Boyd's share = 400, Ms Tuck = 800

2. Mr Boyd's realised gain = $16,800, recognized gain = $0, basis = $13200

Ms Tuck's realized gain = $18500, gain recognized = 0, basis = $41500

Explanation:

Total share = $1200

Cash received from Mr Boyd = 10000

FMV from him = 20000

Total value = 30000

FMV of equipment from Ms Tuck = 60000

Total value from both of them = 60000 + 30000 = $90000

Number of share Mr Boyd is to receive = 1200x(30000/90000)

= 400

Number of share Ms Tuck is to receive

= 1200x(60000/90000)

= 800

<u>Mr Boyd's gains</u>

Cash received = 10000

FMV = 20000

Total = 30000

Adjusted basis = 3200

Total tax basis = 10000+3200

Gain realized = 30000-13200

= 16800

Gain realized = 0 because it is a non taxable exchange.

Mr Boyd's realised gain = $16800, recognised gain = $0, basis = $13200

<u>Ms Tuck</u>

FMV = 60000

Adjusted tax basis = 41500

Gain realized = 60000-41500

= 18500

Gain recognized = 0(non taxable exchange)

Ms Tuck's realized gain = $18500, recognized gain = $0, basis = $41500

the FMV basis of inventory = 20000

carryover basis = 3200

equipment basis FMV = 60000

carryover basis = 41500

note that no gain if equal to or more than 80 percent of the ownership of the stock in a non taxable exchange.

6 0

3 years ago

General Widget partnership assets amount to $34,000 after liquidation. Frank, Gene, and Hank, equal partners, each contributed $

maks197457 [2]

Answer:

$7,000

Explanation:

Balance to be distributed = Assets amount after liquidation - Creditor - Gene loan to the business

Therefore,

Balance to be distributed = $34,000 - $23,000 - $5,000 = $6,000

Since there is no agreement among the partners regarding the distribution of profits, the amount to be distributed will be shared equally for each partners as follows:

Each partner's of the amount to be distributed = $6,000/3 = $2,000

Amount received by Gene = Loan amount from + Distributed balance share

= $5,000 + $2,000

Amount received by Gene = $7,000

Therefore, Gene gets $7,000 in distribution.

8 0

3 years ago

What is a knowledge worker? What HRM changes can be expected in dealing with knowledge workers with respect to recruiting, selec

weqwewe [10]

<h2>Knowledge worker make difference by thinking in a variety of way.</h2>

Explanation:

Rather than regular worker who do manual work / routine work / physical work, Knowledge worker are those who always thinks in variety of ways to solve complex issues, create new products and take company in a different route of success which can be achieved with ease.

The HR should play a major role in motivating knowledge workers by,

providing flexible-timings
Provide additional allowances
Bonus on fixing complex issues / finding new products
Awards & other mode of appreciation on achievement

4 0

4 years ago

Which of the following would be considered a DISADVANTAGE of the use of above-market compensation? A. It may encourage voluntary

-BARSIC- [3]

Answer:

E. It may encourage a sense of entitlement among employees.

Explanation:

Above the market, compensation in the form of wage strategy in which the organizations initiates high salaries to the employees. High salaries are provided to the employees to attract them and to retain them in the team. This is done to maintain the caliber of the group and for the smooth flow among the team members.

4 0

3 years ago