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2 years ago

The income statement disclosed the following items for 2016:

Business

1 answer:

-Dominant- [34]2 years ago

6 0

Answer:

$527,610

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is presented below:

Cash flow from Operating activities

Net income $508,000

Adjustment made:

Add : Depreciation expense $57,600

Less: Gain on disposal of equipment -$33,600

Less: Increase in accounts receivable -$8,960

Add: Decrease in inventory $5,120

Less: Decrease in accounts payable -$6,080

Add: Increase in income tax payable $1,410

Add: Increase in dividend payable $2,200

Add: Increase in prepaid insurance $1,920

Net Cash flow from Operating activities $527,610

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A company has the choice of either selling 600 defective units as scrap or rebuilding them. The company could sell the defective

mars1129 [50]

Answer: The company must rebuild the units.

Explanation: We must compare the benefits obtained by selling the defective units with the benefits obtained by selling the reconstructed units.

If we sell the defective units: 600 units × $2 = $1200

Versus

If we sell the rebuilt units: 600 units x ($5 - $0.60 [Materials] - $1 [Labor] - $0.80 [Overhead]) =

= 600 x ($2,60) = $1560.

Then it is convenient to rebuild the defective units to obtain a greater benefit.

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“E-Commerce is a boon to small scale enterprises, `entrepreneurs and customers”. Explain.

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Answer:

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2 years ago

Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for their products. The market analysis

Alex787 [66]

Answer:

Jaxon Furnishings Company Vs Logging Opportunities in Alaska

Comparison of the benefits of increased wood production to the costs of deforestation:

The company is using the __environmental sustainability___ approach to make this ethical decision.

Explanation:

According to brittanica.com, environmental "sustainability is understood as a form of intergenerational ethics in which the environmental and economic actions taken by present persons do not diminish the opportunities of future persons to enjoy similar levels of wealth, utility, or welfare."

An approach to an ethical decision is sustainable when it considers the long-term benefits and costs associated with the decision, instead of concentrating on the short-term benefits as some business transactions are done. Short-termism selfishly considers the immediate gains from a transaction. It lacks a futuristic appetite for the good of future generations.

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Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the

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Answer:

1 ) Variable Overhead Rate Variance = ( SR - AR )* AH

= ( $21 - $20) 3,500

= $3,500 Favorable

2 ) Labor Rate = ( SR - AR )* AH

= ( $24 - $24.9) 2,290

=$2,061 U

Explanation:

TOTAL = Standard cost - Incurred cost

Standard Cost = $70,000 + $4,550

= $74,550

Standard Rate = $74,550 / 3,550

= $21

cost incurred = AR * machine hours

cost per machine hour = $70,000/3,500

=$20

2) Labor Rate = ( SR - AR )* AH

= ( $24 - $24.9) 2,290

=$2,061 U

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