Answer:
MYRIAD PRODUCTS COMPANY
Cash flow from Operating Activities
($ in millions)
Net Income $ 113
<u>Adjustment of non-cash items :</u>
Depreciation expense $72
Patent amortization expense $5
Loss on sale of land $3
<u>Adjustment to Changes in Working Capital :</u>
Decrease in Accounts receivable $14
Decrease in Inventory $12
Increase in Accounts payable $8
Decrease in Salaries payable ($8)
Increase in Interest payable $7
Increase in Income taxes payable $7
Net Cash Provided by Operating Activities $219
Explanation:
The Indirect method reconciles the Net Income and Operating Cash flow by adjusting for<em> non- cash items</em> and <em>changes in working capital</em> during the year.
In the given transaction Marvin Company has purchased a new building for $250,000. Marvin paid a $100,000 down payment and will pay off the remainder over seven years it means the balance (250000-100000) = 150,000 is a liability for Marvin company.
So there is an Increase in the asset by $250,000 due to purchase of the building and there is a decrease in assets by $100,000 due to the payment of cash. Hence the Net increase in the assets is (250,000-100,000) = $150,000.
And there is an increase in the liabilities by $150,000.
Hence the correct answer is:
d. $150,000 net increase in assets and $150,000 increase in liabilities
Answer:
B) Normal conditions are rarely encountered."
Explanation:
The most likely response from his neighbor was probably, "good luck with all that, i remember reading somewhere that Normal conditions are rarely encountered." This would be the most likely response because his neighbor is described as being jealous and skeptical. Therefore his response will most likely have a tone of hope that something happens so that the installation can't happen, such as bad weather.
Answer:
B) In its rulings, the NLRB has allowed employee empowerment in certain very limited situations.
Explanation:
Employee empowerment refers to a company giving its employees a higher degree of autonomy and independence regarding their normal work related activities.
Personally I don't understand how employee empowerment can affect employees negatively but unions tend to oppose it unless they are directly involved in the empowerment process.
Answer:
Decrease by $10,640
Explanation:
The unused capacity ordinarily will not change the fixed component of cost but will increase the variable cost hence the net income increase or decrease is know as net contribution margin. However, given the fixed cost as a unit cost, it will be affected by the offer of accepted.
Net income is the result of sales less cost where the cost is made of the fixed and variable portions.
Net income increase/(decrease)
= 23.1 (3800) - 3800(17.9 + 8)
=3800( 23.1 - 25.9)
= ($10,640)
Accepting the offer will result in a decrease in net income