Answer:
Decrease of net cash flow
Explanation:
Underthe indirect method, we calculate the cash flow based on the change in working capital:
The inventory, which is an asset will be purchased with cash or cash equivalent. Therefore, an increase on inventory produce a decrease of net cash flow.
If the inventory is purchased on account then, It will increase account payable, which represent an increase on the net cash flow. This generates a net effect of zero, 100,000 for account payable - 100,000 for inventory.
Which is what happens when purchase on account are made.
However, here we are asked for an increase on inventory only. We should simply state that this will represent a decrease in the cash flow for 100,000.
Answer:
a. XYZ's average selling price per handlebar last year was $30
b.
XYZ's total variable costs last year were $36,000
c. XYZ's average unit variable costs last year were $6
d. XYZ's average unit contribution margins ($) last year were $24
Explanation:
a.
XYZ's average selling price per handlebar last year = Total Sales/number of handlebars sold = $180,000/6,000 = $30
b.
XYZ's total variable costs last year = total costs - fixed costs = $100,000 - $64,000 = $36,000
c. XYZ's average unit variable costs last year = Total variable costs/number of handlebars = $36,000/6,000 = $6
d. XYZ's average unit contribution margins ($) last year = Selling price per handlebar - average unit variable costs = $30 - $6 = $24
Answer:
The correct answer is B.
Explanation:
Giving the following information:
In the first month of operation, 3,000 units were produced and 2,250 units were sold.
Actual fixed costs are the same as the amount budgeted for the month.
Other information for the month includes:
Variable manufacturing costs $38 per unit
Variable marketing costs $ 2 per unit
Fixed manufacturing costs $60,000 per month
Administrative expenses, all fixed $12,000 per month
Finished goods 750 units
Absorption costing= variable manufacturing costs + fixed overhead
Absorption costing= 38 + (60,000/3,000)= $58
Cost of goods sold= 58*2,250= $130,500
Answer:
T
Explanation:
<em>When preparing for a test, the most important first step is to determine what the test is all about. Thereafter, individuals can then design the mode of preparation that suits them in order to be successful in the test.</em>
Mode of preparation varies from individual to individual because intellectual ability also varies. While some absorb information quickly, others might require a considerable time before they can come to terms with information.
<u>The best answer from the choices is T, which means true.</u>
Answer:
How much may Adrian deduct?
This depends on whether the museum is private or not. If the museum belongs to a public charity or a university, then Adrian can deduct full fair market value = $35,000. Since Adrian's AGI is $80,000, she could donate up to $40,000 (half her AGI).
But if the museum is a private organization, then Adrian can deduct only her basis in the vase = $15,000
How would your answer to Part a change if, instead of displaying the vase, the museum sold the vase to an antique dealer?
Once you donate artwork, unless you strict prohibit the museum from selling it, then they can sell it and you cannot do anything about it. Some donors specific certain terms for their donations, e.g. artwork cannot be sold and it must be exhibited at least a certain amount of time, in certain places, etc. But if Adrian didn't include any clause on her donation, then whatever happens to the vase is up to the museum.
Currently, museums are less likely to accept restricted donations, unless of course the artwork is worth it.
