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borishaifa [10]
2 years ago
9

Hsu Corporation had a beginning balance of $6,000 in its Land account. During the year Hsu Corporation sold some of its land, re

ducing the balance in the Land account at the end of the year to $1,500. Hsu also recognized a $700 gain on the sale of land on its current year income statement. What is the effect of this sale on the company's statement of cash flows assuming that Hsu Corporation made no land purchases during the year?
Business
1 answer:
Butoxors [25]2 years ago
5 0

Answer:

  • the gain on disposal of $700 is deducted from the net profit in the segment of cash flows from operating activities.
  • the cash received of $5,200 is recognized as a cash inflow in the segment of the cash flows from Investing activities

Explanation:

Cost of land held at the start of the year = $6,000

Closing balance = $1,500

Cost of land sold = $6,000 - $1,500

                            = $4,500

Gain on sale = $700

Therefore, amount received on disposal = $4,500 + $700

                                                                    = $5,200

The effect on of this sale on the company's statement of cash flows assuming that Hsu Corporation made no land purchases during the year is in two parts;

  • the gain on disposal of $700 is deducted from the net profit in the segment of cash flows from operating activities.
  • the cash received of $5,200 is recognized as a cash inflow in the segment of the cash flows from Investing activities
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Pharoah Company just began business and made the following four inventory purchases in June: June 1 186 units $1290 June 10 248
kherson [118]

Answer:

<u>Ending Inventory 2,092</u>

<u></u>

Explanation:

PURCHASES  

DATE QUANTY PRICE         SUBTOTAL

1       186                 $6.935484   $1,290.00

10      248                   $7.78226   $1,930.00

15      248                  $8.38710   $2,080.00

28       186                  $8.81720   $1,640.00

<em>Inventory on hand 260</em>

Using FIFO <u>we have to pick from the bottom of the table</u> until reach 240 unit.

last line: June 28th 186 units total cost 1640

<em>240 - 186 = 54 units </em>

we need 54 more units so we go to next purchase

June 15th 54 units  at 8.3810 = 542.034 = 542

Now we add to get total ending ivnentory

186 units 1640

54 units 452

<u>Ending Inventory 2,092</u>

5 0
2 years ago
Read 2 more answers
Cost of Producing Guitars Carlota Music Company estimates that the marginal cost of manufacturing its Professional Series guitar
worty [1.4K]

Answer:

The total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is <u>C(x) = 0.004x^2 + 90x + 8,500</u>.

Explanation:

Given,

C '(x) = 0.008x + 90 ................................... (1)

To obtain the the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month, we obtain the integral of equation (1) as follows:

C(x)=\int\limits {C'(x)} \, dx = \int\limits {[0.008x + 90]} \, dx

C(x) = (0.008 / 2) x^2 + 90x + F

C(x) = 0.004x^2 + 90x + F .......................... (2)

Where F is the constant.

Since total cost is the addition of the total cost and total variable cost, the F in equation (2) represents the total fixed cost per month.

Since the fixed costs incurred by Carlota are $8500/month, this implies that F = 8,500.

Substituting F = 8,500 into equation (2), we have:

C(x) = 0.004x^2 + 90x + 8,500 <-------------- Total cost per month

Therefore, the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is <u>C(x) = 0.004x^2 + 90x + 8,500</u>.

7 0
2 years ago
A rectangular field with one side along a river is to be fenced. Suppose that no fence is needed along the river, the fence on t
Klio2033 [76]

Answer:

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Other sides = 240 ft

Explanation:

Let 'R' denote the length of fence opposite to the river and 'L' denote the length of the other two sides.

The cost as a function of R is:

L*R = 28,800\\L=\frac{28,800}{R}\\ C = 40R+10*2*\frac{28,800}{R} \\C(R) = 40R+576,000R^{-1}

The value of R for which the derivate of the cost function is zero is the length that minimizes cost:

C'(R) =0= 40 -576,000R^{-2}\\R=\sqrt{\frac{576,000}{40}}\\R=120\ ft\\

If R is 120 ft, then the value of L is:

L = \frac{28,800}{120}\\L=240\ ft

The dimensions that will minimize costs are:

Side opposite the river = 120 ft

Other sides = 240 ft

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arsen [322]

Answer and Explanation:

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= $99,000

And, if payment is made after 15 days so no discount would be given as it is exceeded the prescribed time limit i.e 10 days. So in this case the $100,000 cash is paid

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