Answer: Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.
Explanation:
From the question, we are informed that Andrew has been asked to estimate future cash flows for his company and that he is having a hard time remembering how to estimate future cash flows from his accounting classes.
Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.
The first advice I would give Mr. Peterson would be to formalize the transfer. So the first step in this situation would be to contact a good lawyer to see if the transfer of business to your child would be authorized. This is because the transfer of LLCs has rules that may differ from one location to another.
Answer:
The correct answer is option d.
Explanation:
Ramses's business is organized as a sole proprietorship. A sole proprietorship is a form of business in which there is a single owner who manages and runs the business. The owner has unlimited liability for the firm's debts. There is no distinction between owner and business entity.
The advantage of a sole proprietorship is that the owner does not have to share profits. The owner pays personal income tax on profits earned.
All but He should give up some liquidity are correct.
Explanation:
Cash management is the credit inflow and outflow management process. In the financial sector, both individuals and corporations have a lot of cash management factors and solutions. The cash flow statement for companies is a key element in the management of cash flow.
The following shall be included in general working capital:
Current assets: Money, receivable accounts for one year, stock
Current liabilities: All sales and marketing in respect of one year, short-term debt paid in respect of one year.
Answer:
Annual depreciation= $73,551.72
Explanation:
Giving the following information:
A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. The residual value is expected to be zero. The truck is driven 27,000 miles during the first year.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= (316,000/116,000)*27,000= $73,551.72
