BUSINESS COLLEGE

In preparing a statement of cash flows using the indirectmethod, the Depreciation Expense ________. A. is shown as a negative cash flow under operating activities

B. is added back as an adjustment to Net Income in the operating activities section

C. is added back to Purchases of Plant Assets under investing activities

D. is shown as a negative cash flow in the investing activities section

Answers

Answer 1

Answer:

Answer:B -

Explanation:Depreciation is added back as an adjustment to the net income in the operating activities section.

Answer 2

Answer:

Answer:

The correct answer is letter "B": is added back as an adjustment to Net Income in the operating activities section.

Explanation:

Since net income is a starting point for calculating cash flows from operating activities, depreciation costs must be added back to net income if the method being used is the indirect process. Therefore, depreciation spending is recorded in the cash flow statement.

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1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.
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Sleepy Company, a 70%-owned subsidiary of Pickle Corporation, reported net income of $600,000 and paid dividends totaling $225,000 during Year 3. Year 3 amortization of differences between current fair values and carrying amounts of Sleepy's identifiable net assets at the date of the business combination was $112,500. The noncontrolling interest in consolidated net income of Sleepy for Year 3 was :
a. $146,250.
b. $33,750.
c. $67,500.
d. $180,000.

Answers

Answer:

Option (a) is correct.

Explanation:

Given that,

Net income = $600,000

Difference between fair value and carrying value = $112,500

70%-owned subsidiary of Pickle Corporation.

Non-controlling interest in net income:

= [Net income - Difference between fair value and carrying value] × 0.3

= [$600,000 - $112,500] × 0.3

= $487,500 × 0.3

= $146,250

Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.)A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit 80 1,000 2,088
Total fixed costs 73,200 660,000 3,758,400
Target profit 266,760 3,000,000 3,132,000
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to break even
Required sales dollars to break even
Required units to achieve target profit

Answers

Answer:

Contribution margin per unit

A = $120

B = $3,000

C = $3,132

Contribution margin ratio

A = 60%

B = 75%

C = 60%

Units to break even

A = 610 units

B = 220 units

C = 1,200 units

Sales dollars to break even

A = $122,000

B = $880,000

C = $6,264,000

Units to achieve target profit

A = 2,833 units

B = 1220 units

C = 2,200 units

Explanation:

Contribution margin per unit

Contribution margin = Sales - Variable Costs

A B C

Sales price per unit $200 $4,000 $5,220

Variable costs per unit ($80) ($1,000) ($2,088)

Contribution Margin $120 $3,000 $3,132

Contribution margin ratio

Contribution margin ratio = Contribution / Sales × 100

A = $120 / $200 × 100

= 60%

B = $3,000 / $4,000 × 100

= 75%

C = $3,132 / $5,220 × 100

= 60%

Units to break even

Units to break even = Fixed Cost ÷ Contribution margin per unit

A = $73,200 ÷ $120

= 610 units

B = $660,000 ÷ $3,000

= 220 units

C = $3,758,400 ÷ $3,132

= 1,200 units

Sales dollars to break even

Units to break even = Fixed Cost ÷ Contribution margin ratio

A = $73,200 ÷ 60%

= $122,000

B = $660,000 ÷ 75%

= $880,000

C = $3,758,400 ÷ 60%

= $6,264,000

Units to achieve target profit

Units to achieve target profit = Fixed Cost + Target Profit ÷ Contribution margin per unit

A = $73,200 + 266,760 ÷ $120

= 2,833 units

B = $660,000 + 3,000,000 ÷ $3,000

= 1220 units

C = $3,758,400 + 3,132,000 ÷ $3,132

= 2,200 units

Record the adjusting entry for salaries payable (LO3-3) Fighting Irish Incorporated pays its employees $3,220 every two weeks ($230/day). The current two-week pay period ends on December 28, 2021, and employees are paid $3,220. The next two-week pay period ends on January 11, 2022, and employees are paid $3,220. Required: Record the adjusting entry on December 31, 2021. Calculate the 2021 yearend adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2021 is $0).

Answers

Answer:

Record the adjusting entry on December 31, 2021. Calculate the 2021 year end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2021 is $0).

Db Salaries expenses____________________ 690

Cr Salaries payable_______________________ 690

Explanation:

Pays 3220 Two Weeks

Pays 230 Daily

Dates Expense Payable

December 29 230

December 30 230

December 31 230

Janaury 1 230

Janaury 2 230

Janaury 3 230

Janaury 4 230

Janaury 5 230

Janaury 6 230

Janaury 7 230

Janaury 8 230

Janaury 9 230

Janaury 10 230

Janaury 11 230

690 2530

Db Salaries expenses____________________ 690

Cr Salaries payable_______________________ 690

Assume that your credit sales for March was $12,764,for April was $27,406 and May was $28,706. If credit sales are collected 55% during the month of sale, 25% the month following the sale, and 15% in the second month following the sale, what is the total expected cash collections to be received in May? Round your answer to one dollar.

Answers

Answer:

Total expected cash collections for May are $24554

Explanation:

The May's cash collections will include collections from March's credit sales worth 15% of March's sales, collections for April's credit sales worth 25% of April's credit sales and collections worth 55% of t=May's credit sales. Thus the collections are,

Collection for March's sales = 12764 * 0.15 = $1914.6

Collection for April's sales = 27406 * 0.25 = $6851.5

Collection for May's sales = 28706 * 0.55 = $15788.3

Total expected cash collections for May = 1914.6 + 6851.5 + 15788.3

Total expected cash collections for May = $24554.4 rounded off to $24554

Valley Designs issued a 90-day, 6% note for $96,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. July 9 b. Determine the maturity value of the note. $ Feedback The due date is the date the note is to be paid. Remember the interest rate is stated on an annual basis, while the term is expressed as days. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note. c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. Accounts Receivable-Valley Designs Allowance for Doubtful Accounts Feedback The account receivable must be removed from the books and the newly issued note receivable recorded. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.

Answers

Answer: Please see answer in explanation column

Explanation:

a) Due date = April 22+90 days = July 21

b) Maturity value = 96,000+(96,000*6%*90/360) = $97,440

c1) Journal entry for receipt of note by Bork Furniture

journal Debit Credit

Notes receivable $96,000

Account receivable $96,000

C2) Journal entry to record receipt of payment at maturity

journal Debit Credit

Cash $97,440

Notes receivable $96,000

Interest revenue $1,440 (97,440-96,000)

Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchases: 2.80 trillions of rupees. Individuals consume: 10.50 trillions of rupees. Individuals save: 5.10 trillions of rupees. Businesses invest: 1.30 trillions of rupees. Foreigners spend: 0.64 trillions of rupees to purchase Pakistani firms. Pakistan imports: 2.09 trillions of rupees. Pakistan exports: 1.30 trillions of rupees.

Answers

Answer:

Pakistan's GDP is 13.81 trillions of rupees.

Explanation:

GDP = C + I + G + NX

Here:

C = 10.50

I = 1.30

G= 2.80

NX = (1.30 - 2.09) = -0.79

GDP = 10.50 + 1.30 + 2.80 - 0.79

GDP = 13.81

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