In its reconciliation schedule, Ash Mountain Enterprises (AME) should adjust the reported interest expense of $11,000 on its outstanding bonds to reflect the actual cash payments made during the year.
As AME paid its regular installments of $9,000 of interest in cash, this amount should be subtracted from the reported interest expense of $11,000 to arrive at the adjusted interest expense of $2,000.
This adjustment is necessary because the income statement reports expenses on an accrual basis, which means that expenses are recognized when they are incurred, regardless of when the actual cash payment is made. On the other hand, the statement of cash flows reports cash flows on a cash basis, which means that cash payments are recorded when they are actually made.
By preparing a reconciliation schedule that compares the income statement with the statement of cash flows on both the direct and indirect method bases, AME can ensure that its financial statements are accurate and complete. This helps to provide a clear and transparent picture of the company's financial performance, which is important for stakeholders such as investors, creditors, and regulators.
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Answer:
2,3,5,6
Explanation:
Answer:
other guy is correct
Explanation:
Answer:
The answer is: $700,000
Explanation:
A company´s resource flows are the amount it reinvests to maintain (or in this case upgrade) or build a resource, for example new machinery or infrastructure renovations.
In this case, Ironhorse Tools spent $700,000 to upgrade its manufacturing facilities.
Answer:
Teaser advertising
Explanation:
Advertising refers to promotion of a product or a service using mass appealing channels such as print media, television, banners and posters.
A Teaser usually serves as a clue to what is to follow at a later stage.
Teaser advertising refers to a form of pre launch promotion wherein small , brief and obscure nature of advertisements which serve as a lead up to a bigger larger forms of advertisements later on.
The purpose behind creation of such advertisements is, the advertiser captures the interests of the viewers and arouses curiosity which connects the viewer to the product over a period.
The given case corresponds to such a form of advertising.
Answer:
Increased cultural diversity
The most appropriate area of the SWOT analysis for each item is:
1. Strength - The R&D program at the company produces world-class products.
2. Opportunity - Our product is targeted to young professionals under 35 years of age. That group is growing.
3. Weakness - The equipment the company owns is last generation and does not have the latest technology.
4. Threat - There have been several up and coming companies that are beginning to enter our market space.
5. Opportunity - Word is that a new highway is being built in the next couple of years, making it easier to transport our products from the factory.
6. Strength - The employees who work for us are highly skilled and leaders in their field.
7. Weakness - Management does not provide a big budget to support the world-class staff that work for the company.
8. Threat - The company uses a fair amount of short-term debt financed through the bank. Economic projections indicate that interest rates may rise in the future and credit will be more difficult to obtain.
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Answer:
The answer is: A) Which course of action maximizes my net benefits.
Explanation:
Traditional way of reasoning (or practical reasoning) varies from moral reasoning in that they aim to maximize one’s happiness while moral reasoning aims a maximizing everyone´s happiness (the community, country or humankind as a whole).
Maximizing my net profits would be an example of maximizing my own happiness. Therefore it should be considered practical reasoning. That doesn´t mean it is bad or unmoral, it is selfish but there is nothing wrong with it. It just doesn´t aim at maximizing everyone´s happiness.