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3 years ago

Can you explain operating income

Business

1 answer:

Sveta_85 [38]3 years ago

3 0

Answer:

an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold

Explanation:

shows your business's ability to generate earnings from its operational activities.

Operating income is a company's profit after deducting operating expenses

Operating income is the sum total of a company's profit after subtracting its regular, recurring costs and expenses.

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What journal entry is recorded as a result of issuing stock to investors for cash?

Liula [17]

I believe this would result to a debit to cash and a credit to common stock. This is because the transaction would result to an increase in cash (asset) and a decrease in stock (asset). A journal is a record used in accounting in which transactions are initially recorded in order of when they were undertaken.

3 0

4 years ago

Hula’s Heavyweights, Inc., is a company that manufactures forklifts. During the year, Hula’s purchased $1,450,000 of direct mate

ki77a [65]

Answer:

Ending Inventory = $ 270,000

Explanation:

Hula’s Heavyweights, Inc.

Forklifts Manufacturers

Ending Balance In Inventory Account

Hula's beginning Balance = $ 320,000

Add Direct Materials Purchased = $ 1,450,000

Material Available for use= $ 1770,000

Less Direct Material issued for production = $ 1500,000

Ending Balance in Inventory Account = $ 270,000

The ending inventory of Hula's Heavyweight , Inc., is $ 270,000

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3 years ago

Direct financing works in multiple ways. Put the following events in order to show how direct financing can strengthen an econom

bazaltina [42]

Answer: E,C,D,B.

Direct financing strengthen an economy's GDP because they come without any interest cost or rate and are directly invested to increase the level of production or output of a business .

Explanation:

Direct financing occurs when money is borrowed from the financial market without using a third party or an intermediary, this is done in other to avoid indirect financing and it's high borrowing cost effect where the overall cost of the loan can be increased through interest rate.

Direct financing is when shares or securities are sold by a borrower in order to raise money and avoid interest rates that comes with using intermediaries or third party services.

Note: Those intermediaries are banks.

6 0

4 years ago

A proposed new project has projected sales of $219,000, costs of $96,000, and depreciation of $26,000. The tax rate is 23 percen

zloy xaker [14]

Answer and Explanation:

The computation of the operating cash flow using the four different approaches is shown below:

1. EBIT + depreciation - taxes approach

But before that the net income would be

Sales $219,000

Less cost -$96,000

Less depreciation -$26,000

EBT $97,000

Less tax at 23% -$22,310

Net income $74,690

Now the operating cash flow is

= EBIT + depreciation - taxes

= $97,000 $26,000 - $22,310

= $100,690

2. top down approach

= Sales - cost - taxes

= $219,000 - $96,000 - $22,310

= $100,690

3. Tax shield approach

= (Sales - cost) × (1 - tax rate) + tax rate × depreciation expense

= ($219,000 - $96,000) × 0.23 + 0.23 × $26,000

= $94,710 + $5,980

= $100,690

4. Bottom up approach

= Net income + depreciation

= $74,690 + $26,000

= $100,690

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3 years ago

News channels (CNN, FOX, MSNBC, LOCAL NEWS) are best used for:

Valentin [98]

Figuring out what is going on in the world around you including weather, latest political views, and bussiness facts

3 0

3 years ago

Read 2 more answers