Answer:
B. Payment of cash dividend
Explanation:
Payment of stock dividend, declaration of cash dividend or stock split does not involve outflow of cash. Hence, they do not form part of cash flow statement.
A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout.
Answer:
pretax income is $152080
Explanation:
given data
fixed costs = $74300
variable costs = 34%
sales = $343000
to find out
pretax income
solution
we know that pretax income formula is
pretax income = sales - variable costs - fixed costs
put all these value
pretax income = 343000 - 34% of 343000 - 74300
pretax income = 343000 - 116620 - 74300
pretax income = 152080
so pretax income is $152080
Answer:
The correct answer is option B.
Explanation:
The changes in the exchange rate will affect those domestic firms that sell their products in the foreign market or those domestic firms that produce and sell domestically but has foreign companies as competitors.
If the exchange rate falls, the price of domestic firms will decline as compared to imports. This will create more demand for domestic goods.
If the exchange rate increases domestic goods will become costlier and imports will become cheaper. This will increase the demand for imports.
Answer:
a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)
b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
- financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increase
Explanation:
total sales $670,000
- variable expenses $295,000
- fixed manufacturing expenses $246,000
- fixed selling and administrative expenses $194,000
net loss = $65,000
if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000
