Problem 2 Condensed income statements for Werly Corporation are shown below for two years 2016 2017 $75,000 $90,000 Sales Cost of Goods Sold Gross Profit Operating Expense Net Income 45,000 54,000 $30,000 $36,000 15,000 15,000 $15,000 $21,000 Compute the corrected net income for 2016 and 2017 assuming that the inventory as of the end of 2016 was mistakenly understated by $5,000. 2016 2017 $
Answers
The corrected net income for 2016 is $35,000 and the corrected net income for 2017 is $21,000.
How to find net income ?To compute the corrected net income for 2016 and 2017, we need to determine the effect of the incorrect inventory on the cost of goods sold for each year.
For 2016, the cost of goods sold was $45,000, and the inventory was understated by $5,000. This means that the actual inventory at the end of 2016 was $5,000 higher than reported, or $45,000 + $5,000 = $50,000. The corrected cost of goods sold for 2016 is calculated as follows:
Corrected cost of goods sold = Beginning inventory + Purchases - Ending inventory
Corrected cost of goods sold = $0 + $75,000 - $50,000
Corrected cost of goods sold = $25,000
The corrected gross profit for 2016 is calculated as follows:
Corrected gross profit = Sales - Corrected cost of goods sold
Corrected gross profit = $75,000 - $25,000
Corrected gross profit = $50,000
The corrected net income for 2016 is calculated as follows:
Corrected net income = Corrected gross profit - Operating expenses
Corrected net income = $50,000 - $15,000
Corrected net income = $35,000
For 2017, the cost of goods sold was $54,000, and the inventory was not understated. The corrected cost of goods sold for 2017 is the same as the reported cost of goods sold, or $54,000.
The corrected gross profit for 2017 is calculated as follows:
Corrected gross profit = Sales - Corrected cost of goods sold
Corrected gross profit = $90,000 - $54,000
Corrected gross profit = $36,000
The corrected net income for 2017 is calculated as follows:
Corrected net income = Corrected gross profit - Operating expenses
Corrected net income = $36,000 - $15,000
Corrected net income = $21,000
Therefore, the corrected net income for 2016 is $35,000 and the corrected net income for 2017 is $21,000.
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Related Questions
In repetitive operations it is often possible to automatically check for quality and then reject parts that are unacceptable.
Answers
Mclean Consider an essay most recently assigned to you. Identify the most effective academic purpose for the
assignment.
Answers
This essay assignment is most effective for teaching students how to support their arguments with evidence and analysis.
What is essay?An essay is a written composition of moderate length in which a writer expresses an opinion, examines an idea, or presents an argument. Essays are designed to test the student's ability to think and write critically. They can range in length from a few paragraphs to many pages, and can cover any number of topics.
By providing a prompt or topic for the essay, it encourages students to go beyond simply stating their opinion and instead to provide evidence and analysis to support their argument. This type of assignment helps to develop critical thinking and analytical skills, which can be applied to many different areas of life.
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Scenario:
You are a professional financial adviser and you assist your clients in selecting investments. Your supervisor gives you a list of "recommended mutual funds." Although these mutual funds appear riskier than you normally recommend to your clients, your supervisor assures you that these funds represent the best investment opportunities for the clients. The mutual funds on the "recommended list" are paying your company to place them on the list and providing free trips to your supervisor based on a point system (the more you sell, the more points earned.) You recommend these funds to your client and do not disclose that the funds are paying your company to recommend these funds.
Questions:
1. What are the ethical issues/dilemmas?
2. Who might be affected by this situation?
3. List three to five possible actions a person in this situation could take.
4. What would you do?
5. Discuss all of the “tests” that influenced your decision and explain why this test had an impact on your decision.
(The tests are: Harm, Legal, Precedent, Publicity, Defensibility, Mom, Reversibility, Virtues, Professional, Peer, Organization, How does it make me feel?)
{A. Harm test: Does this option do less harm than the alternatives?
B. Legality test: Is this option legal? If the answer is “no,” stop here!
C. Precedent test: Does this option set precedent, which, while the outcome in this fact pattern is not problematic, this option under another fact pattern could cause a dramatically different outcome?
D. Publicity test: Would I want my choice of this option published in the newspaper?
E. Defensibility test: Could I defend my choice of this option before a Congressional committee or a jury of my peers?
F. Mom/Dad test: What would Mom/Dad think of this option? Would this option disappoint those whose respect I value?
G. Reversibility or “Golden Rule” test: Would I still think the choice of this option good if I were one of those adversely affected by it? How would I want to be treated?}
Answers
Conflicts of interest, a lack of transparency, and the possibility of causing harm to customers are examples of the situation's ethical dilemmas.
What is Conflicts of Interest?A person or organization has a conflict of interest when they are involved in multiple interests, one of which could influence the motivation for the other.
2. This situation may have an impact on the clients, financial advisor, supervisor, and mutual fund companies that are part of the arrangement.
3. A person in this situation might take the following actions:
Refusing to recommend the mutual funds on the "recommended list," and providing the supervisor with an explanation for your decision.Revealing to clients that the shared assets on the "suggested list" are paying the organization and the boss in view of a point framework.seeking guidance on how to deal with the situation from a professional organization or compliance department.5. The following are examples of ethical tests that could influence a decision:
Hurt test: Clients may be misled into making investments that are not in line with their financial goals or risk tolerance if the mutual funds are recommended to them without the conflict of interest being disclosed.Validity check: Even though mutual funds paying the company to put them on the list might not be against the law, not telling customers this information could be against regulatory requirements.To know more about Conflicts of Interest, visit:
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When an appraiser assumes that no one is being forced to sell at a reduced price because of an impending divorce or similar situation; and that both buyer and seller are well-informed customers, he is more than likely hired to determine
Answers
Answer:
market value
Explanation:
In situations such as this one, the appraiser is usually hired to determine the market value of the property/asset that the individual is trying to sell. Market value is a term used in economics that describes the actual current value of an asset or a company on the financial market, according to market participants. In other words, this is the current price that other similar assets are selling for and what buyers seem to be willing to pay.
Windborn Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock.
The following amounts were distributed as dividends:
20Y1 $30,000
20Y2 12,000
20Y3 45,000
Common Stock
(dividends per share)
I cannot figure out Y1 or Y3
Answers
The dividends per share for the common stock in year 1 (Y1) is $0.60 per share, and in year 3 (Y3) is $0.90 per share.
To calculate the dividends per share for the common stock in year 1 (Y1) and year 3 (Y3), we need to determine the total dividends distributed and divide them by the number of common shares outstanding.
Given information:
Cumulative preferred stock: 15,000 shares, 1% dividend
Common stock: 50,000 shares, $30 par value
Dividends distributed:
Y1: $30,000
Y2: $12,000
Y3: $45,000
First, let's calculate the dividends per share for the cumulative preferred stock in each year.
Dividends per share for cumulative preferred stock = (Par value * Dividend rate) / Number of preferred shares
Dividends per share for cumulative preferred stock = ($100 * 1%) / 15,000 shares
Dividends per share for cumulative preferred stock = $1 / 15,000
Dividends per share for cumulative preferred stock = $0.000067 per share
Now, let's calculate the dividends per share for the common stock in year 1 (Y1) and year 3 (Y3).
For Y1:
Total dividends for common stock = Dividends distributed - (Dividends per share for cumulative preferred stock * Number of preferred shares)
Total dividends for common stock = $30,000 - ($0.000067 * 15,000)
Total dividends for common stock = $30,000 - $1.005
Total dividends for common stock = $29,998.995
Dividends per share for common stock in Y1 = Total dividends for common stock / Number of common shares
Dividends per share for common stock in Y1 = $29,998.995 / 50,000 shares
Dividends per share for common stock in Y1 = $0.5999799 per share (rounded to $0.60 per share)
For Y3:
Total dividends for common stock = Dividends distributed - (Dividends per share for cumulative preferred stock * Number of preferred shares)
Total dividends for common stock = $45,000 - ($0.000067 * 15,000)
Total dividends for common stock = $45,000 - $1.005
Total dividends for common stock = $44,998.995
Dividends per share for common stock in Y3 = Total dividends for common stock / Number of common shares
Dividends per share for common stock in Y3 = $44,998.995 / 50,000 shares
Dividends per share for common stock in Y3 = $0.8999799 per share (rounded to $0.90 per share)
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what is a literature review
Answers
A literature review is a critical analysis of the existing research on a particular topic. It is typically written as an introduction to a research paper or thesis, and it serves to provide the reader with a background on the topic, as well as an overview of the key findings of the existing research.
A literature review should be well-organized and easy to follow. It should start with an introduction that provides a brief overview of the topic and the research question. The body of the review should then discuss the key findings of the existing research, organized by theme or topic. The review should conclude with a discussion of the implications of the existing research for the research question.
When writing a literature review, it is important to be critical of the sources that you are using. You should evaluate the quality of the research, and you should be prepared to discuss the strengths and weaknesses of the existing research. You should also be prepared to synthesize the findings of the existing research, and to draw your own conclusions about the topic.
A literature review can be a challenging task, but it is an essential part of any research project. By carefully reviewing the existing research, you can gain a better understanding of the topic, and you can develop a more informed research question.
Here are some tips for writing a literature review:
- Start by identifying the key sources on your topic. This can be done by conducting a literature search, using a variety of sources, such as academic databases, online journals, and books.
- Once you have identified the key sources, read them carefully and take notes. Be sure to summarize the main findings of each source, and to identify any gaps in the research.
- Once you have completed your reading, start to organize your thoughts. This can be done by creating an outline, or by using a mind map.
- Once you have a clear idea of what you want to say, start to write your review. Be sure to use clear and concise language, and to cite your sources properly.
- Once you have completed your review, have someone else read it and give you feedback. This can help you to identify any errors or omissions.
Writing a literature review can be a challenging task, but it is an essential part of any research project. By following these tips, you can write a literature review that is clear, concise, and informative.
A local
manufacturing firm produces four different metal products, each ofwhich must be machined, polished and assembled. The specific time
requirements (in hours) for each product are as follows:
Machining,
hours
Polishing, hours Assembling,
hours
Product I 3 1 2
Product II 2 1 1
Product III 2 2 2
Product IV 4 3 1
The firm has available to it on weekly basis, 480 hours of machining time, 400 hours
of polishing time and 400 hours of assembling time. The unit profits on the productare Birr 360, Birr 240, Birr 360 and Birr 480, respectively. The firm has a contract
with a distributor to provide 50 units of product I, and 100 units of any combination
of products II and III each week. Through other customers the firm can sell each
week as many units of products I, II and III as it can produce, but only a maximum
of 25 units of product IV. How many units of each product should the firm
manufacture each week to meet all contractual obligations and maximize its total
profit? Make a mathematical model for the given problem. Assume that any
unfinished pieces can be finished the following week.
Answers
Explanation:
Ek meter triangle is so its side a
The production of the products is given below with the profit as well:
a. Production of Product 1 = 50 units per week
b. Production of Product 2 = 0 units per week
c. Production of Product 3 = 145 units per week
d. Production of Product 4 = 10 units per week
e. Total Profit = $1250 per week
What is the meaning of Production?The process of mixing several inputs, both material and immaterial, to produce output is known as production. Ideally, this output will consist of a product or service that is useful to people and has value.
Production of something is the act of creating something out of components or raw resources. In other words, manufacturing uses inputs to create an output that is suitable for consumption—a good or product with value for a consumer or end-user.
It refers specifically to something like a production process or its result in its most basic form. Economists refer to producing businesses as "producers." These companies manufacture products that they sell to customers. For instance, a garment business makes apparel for customers.
The goal of production is to meet the demand for such converted resources. Production is the organized process of transforming resources into finished products in the form of goods and services.
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Wally's Walleyes wants to introduce a new product that has a start-up cost of $7,800. The product has a 2-year life and will provide cash flows of $4,500 in Year 1 and $4,300 in Year 2. The required rate of return is 15 percent. Should the product be introduced? Why or why not?
Answers
The calculated NPV is negative, indicating that the present value of expected cash flows does not exceed the start-up cost of the project. In other words, the project is expected to generate a net loss.
To determine whether Wally's Walleyes should introduce the new product, we can calculate the net present value (NPV) of the project. The NPV measures the present value of expected cash flows, taking into account the required rate of return.
To calculate the NPV, we need to discount the cash flows using the required rate of return (15 percent). The formula for calculating NPV is:
NPV = Cash Flow Year 1 / (1 + Required Rate of Return)^1 + Cash Flow Year 2 / (1 + Required Rate of Return)^2 - Start-up Cost
\(NPV = $4,500 / (1 + 0.15)^1 + $4,300 / (1 + 0.15)^2 - $7,800\)
\(NPV = $4,500 / 1.15 + $4,300 / (1.15)^2 - $7,800\)
NPV = $3,913.04 + $3,537.41 - $7,800
NPV = -$350.55
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Any part of a machine which————
while in operation can cause a hazard.
O a) Stops
b) Starts
c) Moves
d) Adjusts
Answers
You’re welcome! :)
Can u give me a list of ethical products that can start a business?
also give me list of creative inventions
Surely guys, if you answer this, you will get a noble prize and you are getting 50!!!!! POINTS, COME ON Answer this, please give good answers please!
Answers
Which of the following colors is highly variable and can be either cool or slightly warm, depending on how it is used?
Answers
Explanation:
Dark blue with dark red
A company purchased $2,000 of merchandise on July 5 with terms 1/10, n/30. On July 7, it returned $220 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals:
Answers
Answer:
$1,762.2
Explanation:
Calculation for what The amount of the cash paid on July 8 equals:
Cash Paid = ($2,000 - $220) * (199%-1%)
Cash Paid = ($2,000 - $220) * 0.99
Cash Paid = ($1,780*0.99)
Cash Paid = $1,762.2
Therefore The amount of the cash paid on July 8 equals:$1,762.2
On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,250; What should the Accrual for Doubtful accounts be, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible
Answers
Answer:
$5,835
Explanation:
The computation of the amount of accrual for doubtful account is given below;
= Debit balance of account receivable × given percentage
= $97,250 × 0.06
= $5,835
hence, the amount of accrual for doubtful account is $5,835
We simply multiply both the items so that the correct amount could come
Sunland Company had the following account balances at year-end: Cost of Goods Sold $60,410; Inventory $15,010; Operating Expenses $29,380; Sales Revenue $126,580; Sales Discounts $1,340; and Sales Returns and Allowances $2,090. A physical count of inventory determines that merchandise inventory on hand is $12,360.Prepare the adjusting entry necessary as a result of the physical count.
1. Account Titles and Explanation
Debit Credit
2. Account Tiles and Explanation
Debit Credit
Answers
Answer and Explanation:
The journal entry is shown below:
Cost of goods sold Dr $2,650 ($15,010 - $12,360)
To Inventory $2,650
(Being the cost of goods sold)
By recording this we debited the cost of good sold as it increased the expenses and credited the inventory as it decreased the assets so that the correct recording and posting could be done
What information should researchers and policymakers gather to determine a fair and sustainable plan to make Social Security solvent? Consider each bioecological level. For example, what factors at the macrosystem level might be helpful to policymakers? Exosystem factors? What microsystem or mesosystem factors might help policymakers plan Social Security changes?
Answers
One piece of information that researchers and policymakers should gather to determine a fair and sustainable plan to make Social Security solvent is information about how such funds are spent and invested.
One of the factors at the Macrosystem level that would help policymakers are all the factors that influence child development. This is because if children are well educated and invested in, society is better for it in the long run.
Exosystem factors include organizational factors such as people events and things inside of an organization.
What microsystem or mesosystem factors might help policymakers plan Social Security changes?Factors in the Mesosystem that might help policymakers plan Social Security changes are;
The interaction between parents and instructors.The child's neighborhood and relationship with his or her familyRelationship between parents and their children's friendsRelationship between siblings and friendsFamily members assist their child at a job or education.The relationship between the church and the family.Learn more bout exosystem:
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Lux Ladies, Inc., is a company that specializes in expensive and unusual gifts for all occasions. It keeps a large file of information on all of its regular customers, including names, addresses, and type of gifts they have ordered in the past, and the size and frequency of their orders. The electronic file which stores this information is a(n)
Select one:
a. spreadsheet.
b. MP3 file.
c. PERT file.
d. database.
Answers
Option D. The database is the The electronic file which stores this information for the company Lux Ladies, Inc.
What is a database?A database in computing is a structured collection of data that is electronically accessible and stored. Large databases are housed on computer clusters or cloud storage, whilst small databases can be stored on a file system.
A database is a collection of data that has been organized to make it simple to manage and update. Data records or files containing information, including as sales transactions, customer information, financial data, and product information, are often aggregated and stored in computer databases.
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Munoz Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated.
MUNOZ COMPANY
Income Statements for Year 2
Segment A B C
Sales $ 163,000 $252,000 $249,000
Cost of goods sold (129,000) (90,000) (84,000)
Sales commissions (22,000) (25,000) (28,000)
Contribution margin 12,000 137,000 137,000
General fixed operating expenses (allocation of president’s salary) (37,000) (49,000) (38,000)
Advertising expense (specific to individual divisions. (3,000) (17,000) 0
Net income (loss) $(28,000) $71,000 $99,000
Required
A. Prepare a schedule of relevant sales and costs for Segment A.
B. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A.
Answers
Answer:??
Explanation:
Need help asap right now
Answers
Answer:
2. Sales forecasts $475,000
3. Ben needs 5 more hours
Explanation:
2.
The sales are $500,000. The trend is a 5% reduction in the current year sales figure for next year's performance.
The sales forecast for next year will be a decrease of 5% of this year sales.
next sales will be $500,000 less 5%
Therefore, the next sales forecast will be 95% of $500,000
=95/100 x $500,000
=0.95 x $500,000
=$475,000
Forecasts will be $475,000
3.
Ben requires 20 hours of continuous training.
So far, he has done 900 minutes.
900 minutes is equivalent to 900/60 hours
=15 hours.
To complete the study, Ben requires 20 hrs -15 hours
=5 more hours
Purpose of listening in communication
Answers
Answer:
Listening skill allows one to make sense of and understand what another person is saying. In other word listening skills allow people to understand what someone is talking about -the meaning behind the word.. The ability to listen carefully allows worker to better understand assignments they are given.
If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt to equity ratio for Luther in 2019 is closest to:
Answers
Answer:
Explanation:
If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt -equity ratio for Luther in 2006 is closest to ________.
A) 3.45 B) 1.72 C) 0.86 D) 2.41
B) D / E = Total debt / Total equity
Total Debt = Notes payable (10.5) + Current maturities of long-term debt (39.6) + Long-term debt (231.3 ) = 281.4 million
Total equity = 10.2 × $16 = $163.2, so D / E = $281.4 / $163.2 = 1.72
7) Using a fictional product or service, create a simple business plan by
answering the three questions business owners must consider.
The three questions a business owners must consider are;
1 What good will be produced?
2 How should it be produced?
3 For whom should it be produced?
What good will you produce, or what service will you provide?
Answers
Answer:
i will make legos
It will be produced in a production facility in denmark
will be produced for all genders ages 5+
Explanation:
Using a fictional product, my simple business plan would be based on these economic theories that is what to produce, how to produce and for whom to produce.
What to produce – I will produce herbal hair shampoo.How to produce – I would use both labor intensive and machine incentive techniques equally for production.Whom to produce- The core niche would be the women aged between 15 to 60.What is a business plan?A business plan is a written strategy that outlines the objectives and strategies for accomplishing the objectives of the business. It describes a company's go-to-market strategy, financial forecasts, market analysis, corporate objectives, and mission statement. The business plan may also include a timeframe and information about key personnel who are in charge of reaching the objectives.
A business plan is a crucial document intended for both internal and external audiences of a company. For instance, before a business has built a solid track record, a business plan is utilized to entice investment. Securing financing from financial entities might also be beneficial.
A business plan serves three purposes: it explains the organization's strategy to execute it over the long term, obtains funding from investors, and aids in projecting future company demands.
What is an economic theory?An economic theory is a body of concepts and precepts that describes how various economies operate. An economist may use theories in many ways depending on their specific function. For instance, some theories seek to explain certain economic phenomena, such inflation or supply and demand, as well as the reasons behind them.
Economic theories seek to analyze the causes and effects of economic occurrences, as well as the optimal course of action for influencing or resolving them. They are an extensive set of presumptions, theories, definitions, and guidelines on what should be done in various economic circumstances. Positive and normative approaches to economic theory are the two main categories.
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questions What do you see as the main difference between a successful and an unsuccessful decision? How much does luck oues versus Skill have to do with it?
Answers
Answer:
Explanation:
the difference between a successful and an unsuccessful decision is with a successful decision you would be successful and make profit since this is the subject of business and an unsuccessful decision will make you lose profit and make you lose into Investments. there is no luck vs skill this is all skill actually. skill has to do with this because you need to have certain experience in a certain thing to be having a successful decision.
Which QuickBooks Online report answers the common business question: "Who owes me money?"
Answers
Answer:
Accounts Receivable Aging report.
Explanation:
Because you're receiving money.
Swart Electrical is a Small, Medium and Micro Enterprise (SMME) specialising in electrical supplies in South Africa. The founder and CEO, Mr Swart prefers to solicit inputs from managers of different departments before formulating organisational goals. However, once planning has been concluded, he does not allow managers to deviate from the set goals. Which one of the following options is evident in the scenario regarding the costs of planning? Select one: a. Planning could cause delays in decision-making. O b. Planning consumes management time. O c. Planning demotes co-ordination. Qd. Planning may create rigidity.
Answers
The one options that is evident in the scenario regarding the costs of planning is: d. Planning may create rigidity.
Which evident in the scenario regarding the costs of planning?According to Mr. Swart's planning methodology, once objectives have been stated, managers are not permitted to stray from them.
This suggests that rigidity may have been a result of the planning process since it prevents flexibility or adaptability in response to a changing environment. While planning is crucial for providing direction and organizing efforts, if it is applied too strictly, it may also breed inflexibility.
Therefore the correct option is D.
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Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour.
Answers
Answer:
When the demand for French bread rises, the price of French bread will likely increase as well. This means that the quantity of French bread that sellers are willing and able to sell at each price will increase. As a result, the total amount of revenue that sellers of French bread receive will increase, which means that producer surplus in the market for French bread will increase.
In the market for flour, the increase in demand for French bread may lead to an increase in the price of flour. This is because the increased demand for French bread will likely increase the demand for flour as well, since flour is a key ingredient in making French bread. As the price of flour increases, the producer surplus in the market for flour will also increase.
It's worth noting that the exact change in producer surplus in the market for flour will depend on the elasticity of supply of flour. If the supply of flour is relatively inelastic, the increase in price will result in a larger increase in producer surplus, whereas if the supply of flour is more elastic, the increase in price will result in a smaller increase in producer surplus
What is meant by the concept entrepreneur?
Answers
Answer: An entrepreneur is someone who has an idea and who works to create a product or service that people will buy, as well as an organization to support that effort.
Explanation: An entrepreneur takes on most of the risk and initiative for their new business, and is often seen as a visionary or innovator.
explain why you would prefer limited company from business
Answers
Answer:
Explanation:
A limited company is endowed with all of an individual's rights and abilities.
In most cases, a member's liability for the debts, liabilities, or actions of the limited company is limited to the amount of share capital they have subscribed for.
Additionally, a corporation's ownership interests can frequently be modified.
Bob newsome purchased 250 shares of the new horizons growth fund. the purchase cost for each share at the time of purchase was $30. if this fund charges a 3 percent load, what is the commission amount he will pay the investment company?
Answers
Answer:
$225
Explanation:
Calculation for the commission amount he will pay the investment company
Commission amount= 250 shares x $30 x .03
Commission amount= $225
Therefore the commission amount he will pay the investment company is $225
the oriole mills company has just disclosed the following financial information in its annual report sales of 1.47 million, cost of goods sold of $817,100, depreciation expenses of $179,600, and interest expenses of $ 94,000. Assume that the firm has an average tax rate of 29 percent. Compute the cash flows to investors from operating activity.
Answers
The cash flows to investors from operating activities for Oriole Mills Company is $543,973.
To compute the cash flows to investors from operating activities, we need to start with the net income and make adjustments for non-cash expenses and changes in working capital. The formula to calculate cash flows from operating activities is as follows:
Cash Flows from Operating Activities = Net Income + Depreciation Expenses + Non-Cash Interest Expenses - Increase in Current Assets + Increase in Current Liabilities + Decrease in Current Assets - Decrease in Current Liabilities
Given the financial information provided, we can calculate the cash flows to investors from operating activities as follows:
Net Income:
Net Income = Sales - Cost of Goods Sold - Depreciation Expenses - Interest Expenses - Taxes
Net Income = $1,470,000 - $817,100 - $179,600 - $94,000 - ($1,470,000 - $817,100 - $179,600 - $94,000) * 0.29
Net Income = $1,470,000 - $817,100 - $179,600 - $94,000 - ($379,300 * 0.29)
Net Income = $1,470,000 - $817,100 - $179,600 - $94,000 - $109,927
Net Income = $269,373
Depreciation Expenses = $179,600
Non-Cash Interest Expenses = $94,000
Changes in Working Capital:
Increase in Current Assets = 0 (no information provided)
Increase in Current Liabilities = 0 (no information provided)
Decrease in Current Assets = 0 (no information provided)
Decrease in Current Liabilities = 0 (no information provided)
Finally, we can calculate the cash flows to investors from operating activities:
Cash Flows from Operating Activities = $269,373 + $179,600 + $94,000 + 0 + 0 + 0 + 0
Cash Flows from Operating Activities = $543,973
Therefore, the cash flows to investors from operating activities for the Oriole Mills Company is $543,973.
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Which is the first step in preparing a message either written or verbal?
Consider the audience
Create an outline
Choose a delivery method
Determine the purpose of the message
Answers
Answer: Determine the purpose, I believe. This is my specific order:
Explanation:
1. Determine the purpose of the message
What is your message going to be about?
2. Choose a delivery method
Are you trying to persuade your audience?
3. Consider the audience
Think about what ways you can get your specific audience to pay attention to you and hear you out throughout your message.
4. Create an outline
An outline is similar to a pre-write. Choose the order of events you will be delivering your message in.