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2 years ago

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

Business

1 answer:

Anni [7]2 years ago

4 0

Answer and Explanation:

The preparation of cash flows, using the indirect method is shown below:-

Cash flow from operating activities

Net income $141,680

Adjustment made

Add: Depreciation $14,790

Add: Loss on sale of

investment $10,200

Current operating Assets and liabilities change

Less: Increase in accounts receivable -$19,040

Less: Increase in inventories -$8,670

Add: Increase in accounts payable $11,560

Add: Accrued accounts payable increased $3,740

Net cash flow from operating activities $154,260

Net cash flow from Investing activities

Investment sale $91,800

Less: Equipment purchased -$80,580

Less: Land purchased -$295,800

Net cash flow from investing activities -$284,580

Cash flow from financing activities

Common stock issued $250,000

Less: Paid Dividend -$96,900

Cash flow from financing activities $153,100

Net increase or decrease in cash $22,780

Add: Beginning cash balance $47,940

Ending cash balance $70,720

Working note

Dividend paid = Dividend declared - Increase in Dividend payable

= $102,000 - $5,100

= $96,900

Loss on sale of investment = Sale of investment of amount realized - Investment cost

= $91,800 - $102,000

= -$10,200

The positive amount represents the cash inflow and the negative amount represents the outflow of cash

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Say that you purchase a house for $212,000 by getting a mortgage for $190,000 and paying a $22,000 down payment. If you get a 30

guapka [62]

Answer:

1) Monthly payments:

  $Payment=\$1,394.15$ 

2) Balance in ten years:

  $Balance=\$166,676.94$ 

Explanation:

1. What are the monthly payments?

The formula to compute the monthly payment of a loan is:

$Payment=Loan\times \dfrac{r(1+r)^n}{(1+r)^n-1}$

Where:

Payment is the monthly payment
r is the monthly interes rate: 8% / 12 = 0.08/12
n is the number of months: 12 × 30 = 360
Loan = $190,000

Substitute and compute:

$Payment=\$ 190,000\times \dfrac{r(1+(0.08/12))^{360}}{(1+(0.08/12))^{360}-1}$

$Payment=\$1,394.15$

2. What would the loan balance be in ten years?

There is a formula to calculate the balance in any number of years:

$Balance=Loan(1+r)^n-Payment\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]$

Substitute with n = 10 × 12 and compute:

$Balance=\$190,000(1+(0.08/12))^{(10\times 12)}-\$1,394.15\times \bigg[\dfrac{(1+(0.08/12))^{(10\times 12)}-1}{(0.08/12)}\bigg]$

$Balance=\$166,676.94$

3 0

2 years ago

A consumer has $140 in monthly income to be spent on two goods Z and B. The price of good Z (Pz) is $6.00. The Marginal Rate

romanna [79]

Answer:

3 and 46.67 units

Explanation:

The formula and the computations are shown below:

The price of good B is

= {The price of good Z (Pz)} ÷ {Marginal rate of transformation}

= {$6} ÷ {2}

= 3

Now the number of units to be purchased for all income used is

= (Monthly income spent on two goods) ÷ (price of good B)

= ($140) ÷ (3)

= 46.67 units

By applying the above formula we can find out the price of good B and the number of units purchased

5 0

2 years ago

Jesse designs web sites and uses job order costing. On September 1, Jesse’s Work in Process account had a beginning balance of $

Elena L [17]

Answer:

Work in Process Inventory account at the end of September is $1,950

Explanation:

As all jobs at the beginning of september in the balance of Work in progress were finished, it's costs are now in Finished Goods Inventory. So are too, the two jobs started and finished during September. The Works in Process account records materials, labor and structure costs of order not finished yet at the end of the month.

At the end of september only Job 850 is not finished. The sum of materials, direct labor and overhed that is $1.950, is the balance of Work in Process Inventory account at the end of September.

5 0

2 years ago

Dove and Eagle formed a business entity in which they are equal owners. Dove contributed cash of $100,000, and Eagle contributed

nlexa [21]

Answer:

S corporation

Explanation:

In the given case, The eagle basis at the closing of the year is 70,000 i.e. $40,000 + $30,000 (50% of $60,000)

In the case when the entity was a general partnership so 50% of $10,000 i.e. $5,000 would be added to the basis of Eagle

So here the type of entity that was formed is S corporation

The same is relevant

4 0

2 years ago

Relevant interventions do not need acceptance or ownership from organization members

Bezzdna [24]

The answer would be False

7 0

2 years ago