Answer:
a. $118,000
Explanation:
When preparing a cash flow statement, using indirect method we add decrease in current assets and we deduct increase in current assets.
Here it is provided that income reported = $110,000
Opening balance of accounts receivables = $40,000
Closing balance of accounts Receivables = $32,000
Change in Accounts receivables = Closing - Opening = $32,000 - $40,000 = - $8,000
Therefore there is decrease in accounts receivables which is a current asset.
Thus Cash Flow from operating activities
Net Income = $110,000
Add: Decrease in current assets = $8,000
Net cash flow from operating activity = $118,000
Correct option is
a. $118,000
Answer:
The correct answer is straight rebuy.
Explanation:
The straight buyback is a routine, low participation purchase. A minimum of information is needed and consideration of alternatives is not necessary. This type of purchase is handled by the purchasing department and is usually acquired from a list of approved suppliers. Examples of straight repurchase are repeating purchases of office supplies, and small parts.
Answer:
In which type of economy is a business owner most likely to benefit from free enterprise? (1 point) In a market economy because there is lots of competition and not much take back from the government. This economy is ideal for a free enterprise.
Answer:
The country has closed economy; it means there is no other trading relation with, outside countries. Export imports do not affect the economy of the country, and here is no government interference as mentioned in the question. This is a self sufficient country, its demand fulfilled from inside of the country. So its aggregate price levels and interest rate are fixed. MPC or the marginal propensity to consume indicates whether there is an increase in disposable income or increase in consumption. Here consumption increases equal to the increase in the income.
MPC = ΔC /ΔY which is constant here.
The increase in income in this country is mostly permanent and increases in a fix period of time and proportionately.
C= 200 +0.75 YD (YD is disposable income), Y=75, GDP =$900
The economy achieves it’s equilibrium level when supplies meets demand or the GDP is equals to it’s total expenditure. MPC is a fraction between 0 and 1 , MPC means a change in consumption brings the change in YD . here the MPC is equals to MPS which means the change in saving bring by the change in disposable income. All income here saved or consumed. So the change in income equals to the change in consumption or saving.
MPC+ MPS = 1
So the average propensity to consume is proportionate to income which is spend on consumption. APC= C/ YD. And the average proportionate to save is equals to income saved APS= S/YD . so here APC +APS = 1. The increase in production or price leads to the increase in the total value of output, that is the equilibrium condition.
Explanation:
