Answer:
a) Arrows painted on the floor indicating the flow of the process
Explanation:
A visual workplace is created when there are use of visual symbols to communicate and direct employees on how things are to be done.
Visual workplace has the advantage of always being available to direct employees on how to get things done.
Even when employees are working at some distance apart they can easily get directions on what to do as long as they can see the visual symbols.
For example arrows painted on the floor indicating flow process is a visual symbol that helps employee know the process flow of the operation
The Quilt Shop, Inc. periodically reviews the goals of the company. During the process, the Quilt Shop managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. With these actions the Quilt Shop managers are engaged in the management function of
Answer:
Planning
Explanation:
Quilt shop managers are involved in the management function of planning. As a management function, when we talk about planning, we are talking about a process that involves careful and concerned definition of goals that shows a business or organization where it is headed as well as putting together all necessary resources and capital that is necessary to achieve the plans.
The general manager at the Las Vegas Convention Center is planning to expand its functional area, especially the operations department. As a
customer, which area would you critique and provide a feedback about to the general manager?
ОА customer service friendliness and genuineness in helping guests
OB. billing responses
OC. the year-end report accuracy
OD
the in-house marketing and promotion efforts
Answer:
A. Customer service friendliness and genuinenss in helping guest
Explanation:
In which of the following pairs of terms are both items incomes earned for factors of production?
a. wages and interest.
b. rent and loans.
c. wages and resources.
Answer: a. wages and interest.
Explanation:
There are four factors of production being land, labor, capital and entrepreneurship.
The income earned from labor is called a wage. Wages are paid as remuneration to the labor (people) involved in the production of goods and services.
The income earned from capital is known as interest. The company pays interest to be able to use capital provided by others to enable it engage in the production of goods and services.
On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $60,000 in exchange for common stock. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $22,300. d. Paid rent on office and equipment for the month, $7,000. e. Paid creditors on account, $1,100. f. Billed customers for fees earned for managing rental property, $3,600. g. Paid automobile expenses for month, $750, and miscellaneous expenses, $1,000. h. Paid office salaries, $4,000. 1. Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550. J. Paid dividends, $5,000.
Required:
1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) = Assets Liabilities Stockholders' Equit + Rent Sal.
Item Cash + Accounts Receivable + Supplies = Accounts Payable Common Stock - Dividends + Fees Earned Expense Expense
Answer:
Since there is not enough room here, I used an excel spreadsheet:
People who use white hat SEO tactics try to trick the search engine into thinking a website has high-quality content, when in fact it does not. Select one: True False
Answer:
False
Explanation:
White hat SEO is also called simply SEO and it is the practice of improving content of a website using approved Google search engine optimisation techniques.
Search engine optimisation is the process by which content of a website are made to be of high quality. Search engines rank web content based on how relevant they are to the enquiry made.
The more relevant the content the higher it ranks on search engines.
However black hat SEO techniques are used to fool search engines into thinking the content is of high quality. Practices such as keyword stuffing is a black hat technique which is penalised by Google.
Identify 2 ways technology has a negative impact on society
Technolgy though convenient can have negative effects. Technology can be addicting, causing health issues like insomnia or vision problems. It also can affect our communication skills, making people more closed off to the people around them no longer having face to face contact.
The practical definition of a marketing manager is one of a person focused entirely on finding enough customers to buy the company's current output.
Answer:
False
Explanation:
From the question we are informed that the practical definition of a marketing manager is one of a person focused entirely on finding enough customers to buy the company's current output which is false.
This is false because the practical definition of a marketing manager is one of a person that does not only focused entirely on finding enough customer to buy the output but still have other obligations such as provision of brand awareness, creating promotion, enables a pricing strategy and so on.
Kentucky Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:
Kentucky Company
Income Statement
Year Ended December 31, 2019
Sales Revenue 253,000
Interest Revenue 3,000
Gain on Sale of Plant Assets 6,000
Total Revenues and Gains $262,000
Cost of Goods Sold 118,000
Salary Expense 43,000
Depreciation Expense 13,000
Other Operating Expenses 22.000
Salary Expense 43,000
Interest Expense 1,700
Income Tax Expense 5,500
Total Expenses 203,000
Net Income (Loss) $58,000
Additional information provided by the company includes the following:
1. Current assets, other than cash, increased by $22,000.
2. Current liabilities decreased by $1,100.
Compute the net cash provided by (used for) operating activities.
A. $42,700.
B, $48,700.
C. $35,700.
D. $13,100.
Answer:
$41,900
Explanation:
Net income. $58,000
Non-Monetary terms
Gain on sale of plants ($6,000)
Depreciation expense. $13,000
Changes in working capital:
Current assets increase. ($22,000)
Current liabilities decrease ($1,100)
Net cash provided by (used for) operating activities is $41,900
Which of the following occupations would be best suited for someone with an intuitive-feeling style?A. Public relations B. Advertising C. Human Resources D. Politics E. Customer service
Answer:
Politics
Public relations
Explanation:
There are 4 styles of learning namely:
- Sensing uses their senses to understand the world. They verify first for themselves them they believe
- Intuitive perceives inner meaning in how people relate with each other. Usually they don't just take what they see but look for deeper significance.
- Thinking the individual looks at facts and verifiable information. Thinks in terms of cause and effect.
- Feeling is based on like and dislike. They don't use logic but rather implied meaning of actions.
So for a intuitive-feeling style are those who continuously seek for self expression. They are not comfortable with routine tasks. Do not like following set procedures but act intuitively.
These set of people will do better on politics of public relations
Xavi is a painter of landscapes and seashore portraits. He works outside and has no overhead or fixed costs such as a studio. In a typical year, it costs him $201 in canvas, paints and brushes per painting. This year he sold 322 pictures at a price of $244 each. What is Xavi's percentage markup
Answer:
Markup= 17.62%
Explanation:
Giving the following information:
In a typical year, it costs him $201 in canvas, paints, and brushes per painting. This year he sold 322 pictures for $244 each.
To calculate the markup percentage, we need to use the following formula:
Markup= [(selling price - unitary cost) / selling price]*100
Markup= [(244 - 201)/244]*100
Markup= 17.62%
On the Chicago Board Options Exchange, the person responsible for handling those orders that can be executed immediately is the:__________
A. Order Book Official
B. Floor Broker
C. Market Maker
D. Retail Member
Answer:
B. Floor Broker
Explanation:
Floor brokers on the Chicago Board Options Exchange ( CBOE ) accept orders from member firms for execution. Orders are filled under an open outcry auction system in the trading "pits."
Market makers maintain bid and ask quotes in options contracts.
Order book officials maintain the book of public orders that cannot be immediately filled.
What are the relevant cash flows for valuing a share of common stock?
Explanation:
the present value stock prices is equal to the present value of all future dividends of company.
Rachel Bailey was quickly hired out of Santa Clara University during the dot-com boom to a company of 100 employees that ran an innovative social networking website in Silicon Valley. She was immediately put in charge of email communication to customers-both existing and potential.
The Internet was quite new to everyone and online communication (via email) had little corporate regulation or set social protocol. Privacy policies were yet to be established. With thousands of individuals discovering the Internet everyday, business was booming for the small Silicon Valley firm.
Rachel handled all online contact with existing users and was asked to market to these existing online community members via email. But she struggled with finding a balance of the right amount of marketing. With Internet competition growing everyday within the social networking websites, these users had plenty of alternatives. And flooding their email inboxes, she thought, wasn't the best way to attract them.
Unfortunately, Rachel's boss had a different approach. The Vice President of Marketing wanted results-he wanted existing customers to upgrade their networking packages and follow through on advertisements. He told Rachel to be as aggressive as possible with her email campaigns. But at the same time, Rachel spoke with coworkers who didn't want to work for a company known for its email spam. They prided themselves on working at an organization that respected its users and didn't abuse the ease of email communication-even within the competitive market.
Rachel found subtle alternatives to the mass emails. She developed links on the company website to advertisements, but she wasn' t getting the results her boss demanded.
One day when Rachel arrived at the office, her boss said he had a brilliant idea. He said that everybody knew someone named Cindy Anderson, so they could send emails to their users from that name to trick them into opening the email, which would display a link to their website.
Rachel was incensed with her boss's idea. "A lot of people are very casual with the truth," she said.
Rachel felt very uncomfortable with the thought of implementing what she considered to be her boss's deceptive idea.
"People trust you with their email addresses," said Rachel. "You have to be responsible and not take advantage of that access."
She worried that existing customers would begin to resent the company and unsubscribe. But she also had a commitment to drawing in as many new customers as she could-and her more subtle tactics weren't working.
Rachel made the decision to stand up to her boss. The following week she told him that his idea was deceitful and would cause customers to lose trust and faith in the company. In the end, it wouldn't be a financially viable solution to their problem.
Rachel proved to be convincing. Her boss took her advice and began to realize that it was a bad idea.
"In the end, we had happy customers and our company gained more value in the highly competitive market," said Rachel.
Discussion Questions:________.
Describe the ethical dilemma or dilemmas Rachel faced.
Do you think Rachel's boss' "Cindy Anderson" strategy is ethically acceptable? Why or why not?
What is Rachel's obligation to her customers and what are Rachel 's obligations to the company?
What do you think is the most important factor in how Rachel responded to the situation: That she thought the proposed "Cindy Anderson" strategy was deceitful or that she thought the strategy would cost the company customers?
Jessica Silliman was a 2006-07 Hackworth Fellow at The Markkula Center for Applied Ethics.
Answer and Explanation:
Describe the ethical dilemma or dilemmas Rachel faced:
Rachael was faced with the ethical dilemma of accepting her boss's deceptive strategy to increase customer conversion or reject it because it is wrong even though she doesn't have an ethical or right way of increasing customer base
Do you think Rachel's boss' "Cindy Anderson" strategy is ethically acceptable? Why or why not?
What Rachel's boss asked for is wrong and unethical because betraying the trust of existing customers and trying to deceive them by using another identity is dishonest
What is Rachel's obligation to her customers and what are Rachel 's obligations to the company?
Rachel's obligation to the company was to increase customer conversion by using all possible email communications to market company products. Her obligation to customers was to not be deceitful
What do you think is the most important factor in how Rachel responded to the situation: That she thought the proposed "Cindy Anderson" strategy was deceitful or that she thought the strategy would cost the company customers?
The most important factor in her response was that she thought the Cindy Anderson strategy was deceitful and ethically unacceptable.
Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, which one of the following is not one of the main strategy options that the company can pursue?
A. Stick closely with the existing business lineup and pursue the opportunities these businesses present.
B. Broaden the company's business scope by making new acquisitions in new industries.
C. Craft new initiatives to more strongly differentiate the various products/services in each of the company's businesses and thereby enhance the competitive power and reputation of the company's brand name.
D. Restructure the company's business lineup and put a whole new face on the company's business makeup.
E. Divest certain businesses and retrench to a narrower base of business operations.
Answer: Craft new initiatives to more strongly differentiate the various products/services in each of the company's businesses and thereby enhance the competitive power and reputation of the company's brand name
Explanation:
Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, the one that isn't one of the main strategy options that the company can pursue is crafting new initiatives to more strongly differentiate the various products or services in each of the company's businesses and thereby enhance the competitive power and reputation of the company's brand name.
This is because some strategies adjustment are needed and enhancing its competitive power isn't the right thing to do.
When several systems operate in parallel, total system capacity is the largest value of the individual system capacities. a. True b. False
Answer:
b. False
Explanation:
It is the opposite, when several systems operate in parallel, total system capacity is the lowest value of the individual system capacities.
For e.g., sectors A, B and C operate in parallel. Sector A can handle 100 units per hour, sector B can handle 150 units per hour and sector C can handle 75 units per hour. The system's capacity is 75 units per hour. If you want to operate at 100 units per hour, a queue will in sector C.
give an example of a functional community. explain your reasoning for choosing this example.
Answer:
weeeeeeeeeeeeeeeeeeeeeeeeqrqwer
Explanation:
weeeeeeeeeeeeeeeeeeeeeeeeeewewfwfwffwfwefqwefwfwefwfwefefwefwefweefw
What is the difference between federal purchases and federal expenditures? Give an example of an automatic stabilizer. Explain how automatic stabilizers work in the case of recession. How does expansionary monetary policy increase spending in the economy compared to how expansionary fiscal policy increases spending in the economy? Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy. a. The personal income tax rate is lowered. b. Congress cuts spending on defense. c. College students are allowed to deduct tuition costs from their federal income taxes. d. The corporate income tax rate is lowered. e. The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas.
Answer:
What is the difference between federal purchases and federal expenditures?
Federal purchases are the federal government acquisitions of goods and services. For example, weapons for the military, or supplies for the Postal Service.
Federal expenditures include not only federal purchases but also federal transfers. Federal transfers of income are for example social security and unemployment benefits.
Give an example of an automatic stabilizer.
A corporate tax is one example. Corporate taxes are based on profits. When the economy is growing, firms earn more profit, and thus, pay more corporate tax. When the economy is in recession, firms earn less profit, and as a result, pay less corporate tax.
Explain how automatic stabilizers work in the case of recession.
Some automatic stabilizers (corporate tax, income tax, sales tax) adjust down in the case of recession, while others (welfare and unemployment benefits) adjust up in the case of recession. This is why they are called automatic stabilizers: they adjust according to the state of the economy, and help reduce the overall effects of the economy cycles.
How does expansionary monetary policy increase spending in the economy compared to how expansionary fiscal policy increases spending in the economy?
Expansionary monetary policy increases the money supply. The central bank (in the U.S., the Federal Reserve), lowers the interest rate by increasing the amount of money in the economy. This promotes investment.
Expansionary fiscal policy results in the lowering of taxes, the expansion of government spending, or both. This actions also help the economy grow, although they can result in goverment deficits in some cases.
a. The personal income tax rate is lowered. - Part of expansionary fiscal policy
The lowering of taxes, as explained above, is a form of expansionary fiscal policy.
b. Congress cuts spending on defense. - Contractionary fiscal policy
Government spending cuts are a form of contractionary fiscal policy because they contract the amount of fiscal outlays.
c. College students are allowed to deduct tuition costs from their federal income taxes - Expansionary fiscal policy
This policy is a tax cut in practice, because college students will end up paying less income tax. For this reason, it is expansionary fiscal policy.
d. The corporate income tax rate is lowered. - Expansionary fiscal policy
As explained above, tax cuts are a form of expansionary fiscal policy.
e. The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas. - Expansionary fiscal policy
Increases in goverment spending are expansionary fiscal policy. Here, the state of Nevada is spending more to build a new tollway.
"Aside from the collapse of the stock market and banking industry in the United States, the Great Depression was worsened in America by"
Answer:
The Great Depression was worsened in America by
The lost of GDP output that reduced by more than 30% causing unemployment to rise to a more than 20% record high.
Explanation:
The 1930s Great Depression was the worldwide severe economic recession that erupted, following the stock market crash of October 1929. This crash sent Wall Street into a panic situation and completely wiped out millions of investments. The situation worsened over the next several years, with consumer spending and investments further dropping drastically, exacerbating the worse steep declines in industrial output and employment. And so many collapsing companies laid off more workers into the unemployment situation, thereby worsening the whole scenario.
The difference between the actual amount paid and the standard price paid to purchase an item is called a
Answer:
Purchase Price Variance (PPV)
Explanation:
Answer: Spending variance
Explanation:The difference between the actual amount paid and a standard price to pay to purchase the item is called spending variance
To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. Analyze the accounting equation effects and record the journal entry for the stock issuance. Would your answer be different if the par value were $2 per share? If so, analyze the accounting equation effects and record the journal for the stock issuance with a par value of $2.
Answer:
The journal entry to record this transaction would be:
Dr Cash 50,000
Cr Common stock 1,000
Cr Additional paid in capital 49,000
this transaction basically increases current assets (cash account) and increases equity (common stock and additional paid in capital accounts).
If the par value was $2 per stock, then the journal entry should have been:
Dr Cash 50,000
Cr Common stock 2,000
Cr Additional paid in capital 48,000
the difference is that common stock account will increase by $2,000 instead of $1,000, and additional paid in capital account will increase by only $48,000. But both accounts are part of stockholders' equity,
Journal entry is the recording of each monetary business transaction in the books of accounts in chronological order. The journal entry uses a dual entry bookkeeping system, as it gives a dual effect of each business transaction.
The analysis of the accounting equation effect is as follows:
When the par value is $1 the transaction will increase current assets by $50,000 in the cash account, it will increase owners' equity by $1,000 in common stock and it will increase additional paid-in capital by $49,000.When the par value is $2 the transaction will not change the value of the current asset, but it will increase owners' equity by $2,000 in common stock and it will increase additional paid-in capital by $48,000.The journal entries are recorded in the image attached below:
To know more about journal entries, refer to the link:
https://brainly.com/question/20421012
Tumi owes Peter R20 000 and he asks Rafa to stand surety for his debt. Rafa asks for your advice. He says he is not certain whether:_____.
Which of the following statement is correct:
A. If the surety contract is in writing then he is the only person to sign it.
B. The Surety-ship contract must be in writing.
C. The Surety-ship contract can be concluded orally or in writing.
D. The surety or this agent can sign the surety-ship Contract
Answer:
Option B and D are correct.
Explanation:
The option A is incorrect because the surety-ship contract is signed by two parties, one the creditor and the other one would be the surety. Hence the option A is incorrect.
Option B is correct because the surety-ship contract is always in writing.
Option C is incorrect because surety-ship contract can not be orally agreed as it has no value in court if done orally.
Option D is correct because surety or his agent can sign the contract to form a contract.
what features of the timer design appear to offer doorley the strongest advantages over its competitors products
Complete Question:
The ALPHA Timer Development Project (A)
Roger Terry hurried down the hallway toward the planning meeting for the ALPHA timer product development project. Terry had served as project manager for the initial stage of the ALPHA single-block product development, and he was now preparing to start the follow-on development activities.
The ALPHA timer development project was a major effort for Doorley Controls, Inc., to develop a new platform design for its washing machine timer control mechanism. The project was started with a conscious strategy to gain market position with Doorley’s key customers: Whirlpool, Maytag, and Frigidaire. The idea was to create a new core product design to increase sales to Whirlpool. Doorley planned to replace multiple existing timers with a lower cost, single product platform with enhancements. While existing timers were made with numerous plastic and metal parts requiring a lot of hand assembly, the ALPHA would be made mostly of molded plastic parts, assembled by automation. The product concept also included a unique feature called quiet cycle-select, which allowed the user to index the control shaft quietly. The idea for it came out of Doorley’s internal quality function deployment (QFD) analysis. The results of the ALPHA QFD analysis are shown in the attached document.
What features of the timer design appear to offer Doorley the strongest advantages over its competitors products?
Answer:
Doorley Controls, Inc.
ALPHA Timer Development Project
Features of the Timer Design that appear to offer Doorley the strongest advantages over its competitors' products
By examining the QFD Diagram attached, one can spot the features that offer Doorley the strongest advantages over its competitors' products. They include the following:
There is no switching during manual advance.The timer has application-specific contacts.The quality is improved.There is improved reliability.The device does not allow for contamination.There are timing and bus testing features.Explanation:
Doorley's competitive advantages in the timer device are derived from the features of the new improved timer which will allow its major customers and the users to enjoy the better quality, higher reliability, and cheaper price being offered than its rivals'. These factors allow Doorley to generate more sales or superior margins compared to its competitive market rivals. Doorley also derives competitive advantage by installing "a unique feature in the timer called 'quiet cycle-select,' which allows the user to index the control shaft quietly."
Which two of the following are ordinarily true concerning prepayment of CMOs?
a. If interest rate falls prepayment increases.
b. If interest rate rise prepayment increases.
c. If interest rate falls prepayments decreases.
d. If interest rate rise prepayment decreases
Answer:
A and D
Explanation:
CMO which is an acronym for collateralized mortgage obligation is a term that defines a combination of supplies of mortgage that is, a form of secured loan, which serves as an investment fund that can be borrowed.
However, unlike a typical bond, in CMOs when interest rate declines prepayment rises and when interest rate increases prepayment falls or declines.
Hence, the correct answer is both Option A and D
what is emergency ?
Answer:
an emergency is a situation that poses an immediate risk to health , life , property , or environment. most emergencies require urgent intervention to prevent a worsening of that situation
This video describes the brewing industry. Large brewers and craft brewers are both a part of the industry because: a.all beers taste the same. b.they are operated with the same business organization and have the same ownership structure. c.they both offer products that serve the same customer need. d.They are implementing the same strategic plan to gain a competitive advantage.
Answer:
c.they both offer products that serve the same customer need.
Explanation:
Industries are organized according to the type of good or service that they offer to the final customers.
Examples of industries are the car industry, the fruit industry, the meat industry, and also the beer industry.
Craft beer makers and large brewers, while differing in many ways like organizational structure, capital structure, economies of scale, and amount of production, have in common that they offer essentially the same product to the final customer: beer. This is why they are considered to be part of the same industry.
You purchased 10 year bonds at an issue price of $990 whose face value is $1000. The annual coupon rate is 3%. What is the YTM? Five years later market rates of interest are 5%. What will be the price of the bonds? If you expect interest rates to hold at 5% or less, what should you do with the bonds?
Answer:
What is the YTM?
3.12%Five years later market rates of interest are 5%. What will be the price of the bonds?
$911.11If you expect interest rates to hold at 5% or less, what should you do with the bonds?
Well you already lost money with your investment, but the price of the bond should start to increase, e.g. the value in 6 years would be $927.27. When you are at the bottom, the only way is up, so you should keep the bond to reduce your losses.Explanation:
YTM = {30 + [(1,000 - 990)/10]} / [(1,000 + 990)/2] = 31 / 995 = 0.03115 = 3.12%
5 years later:
5% = {30 + [(1,000 - MV)/5]} / [(1,000 + MV)/2]
0.05 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/5]
(0.05 x 500) + (0.05 x 0.5MV) = 30 + 200 - 0.2MV
25 + 0.025MV = 230 - 0.2MV
0.225MV = 205
MV = 205 / 0.225 = $911.11
in 6 years:
5% = {30 + [(1,000 - MV)/4]} / [(1,000 + MV)/2]
0.05 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/4]
(0.05 x 500) + (0.05 x 0.5MV) = 30 + 250 - 0.25MV
25 + 0.025MV = 280 - 0.25MV
0.275MV = 255
MV = 255 / 0.275 = $927.27
Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee
Answer:
It would affect the supply of coffee.
Explanation:
As a result of the tariff reduction, the import of coffee would increase. As a result, the supply of coffee would increase, shifting the supply curve for coffee to the right.
Please check the attached image for a graph showing increase in supply
In order to be classified as a _______________, a firm must be owned by the people who run it on a day-to-day basis.
Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2018
Net sales $1,725,000
Expenses:
Cost of goods sold $1,020,000
Operating expenses 530,000
Depreciation expense 47,000
Income tax expense 37,000
Total expenses 1,634,000
Net income $ 91,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2018 2017 Increase (I)
or
Decrease (D)
Cash $99,000 $83,500 $15,500 (I)
Accounts receivable 46,300 50,500 4,200 (D)
Inventory 72,000 53,500 18,500 (I)
Prepaid rent 2,700 4,400 1,700 (D)
Accounts payable 42,000 35,500 6,500 (I)
Income tax payable 4,700 8,500 3,800 (D)
Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the DIRECT method. (List cash outflows as negative amounts.)
Answer:
$128,100
Explanation:
Cash flows from operating activities
Net income $91,000
Adjustment to reconcile
net income to net cash
from operations
Depreciation expenses $47,000
Changes in working
capital
Decrease in accounts re. $4,200
Increase in inventory ($18,500)
Decrease in prepaid rent $1,700
Decrease in income tax payable ($3,800)
Increase in accounts payable $6,500
Net cash flow from $128,100
operating activities.
Listed below are several statements that relate to financial accounting and reporting. Identify the basic assumption, broad accounting principle, or component that applies to each statement.
1. Jim Marley is the sole owner of Marley's Appliances. Jim borrowed $100,000 to buy a new home to be used as his personal residence This liability was not recorded in the records of Marley's Appliances
2. Apple Inc. distributes an annual report to its shareholders
3. Hewlett-Packard Corporation depreciates machinery and equipment over their useful lives
4. Crosby Company lists land on its balance sheet at $120,000, its original purchase price, even though the land has a current fair value
5. delivered to customers, even though the cash has not yet been
6. Liquidation values are not normally reported in financial statements of $200,000 Honeywell International Inc. records revenue when products are received even though many companies do go out of business
7. IBM Corporation, a multibillion dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense
Answer:
1. Jim Marley is the sole owner of Marley's Appliances. Jim borrowed $100,000 to buy a new home to be used as his personal residence This liability was not recorded in the records of Marley's Appliances
ECONOMIC ENTITY PRINCIPLE: the activities of a business must be kept separate form the activities of its owners2. Apple Inc. distributes an annual report to its shareholders
TIME PERIOD PRINCIPLE: companies must report their financial statements over standard or fixed periods of time, e.g. monthly, quarterly or annually3. Hewlett-Packard Corporation depreciates machinery and equipment over their useful lives
EXPENSE RECOGNITION: expenses must be recorded during the time periods that they actually occur4. Crosby Company lists land on its balance sheet at $120,000, its original purchase price, even though the land has a current fair value
HISTORICAL COST PRINCIPLE: assets must be recorded at purchase cost and the only adjustment can be accumulated depreciation5. delivered to customers, even though the cash has not yet been
THIS PART IS INCOMPLETE, BUT I BELIEVE IT REFERS TO THE REVENUE RECOGNITION PRINCIPLE: revenue must be recognized once the earning process has been completed and not necessarily when the cash is received.6. Liquidation values are not normally reported in financial statements of $200,000 Honeywell International Inc. records revenue when products are received even though many companies do go out of business
GOING CONCERN PRINCIPLE: this principle assumes that the business will continue to operate in the foreseeable future7. IBM Corporation, a multibillion dollar company, purchased some small tools at a cost of $800. Even though the tools will be used for a number of years, the company recorded the purchase as an expense
MATERIALITY: a company must record all the transactions that may affect the decision making processes. In this case, a tool will not make any difference on a multibillion dollar company.