Business College

Statement of Cash Flows
Colorado Corporation was organized at the beginning of the year, with the investment of $251,500 in cash by its stockholders. The company immediately purchased an office building for $304,900, paying $212,700 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,500 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $66,500 for inventory, $20,500 in salaries and wages, and another $4,000 in taxes. Colorado paid $6,200 in cash dividends.
Required
1. Prepare a statement of cash flows for the years
2. What does this statement tell you that an income statement does not?

Answers

Answer 1

Answer:

Required 1 ;

Statement of Cash Flows

Cash flow from Operating Activities

Cash Receipts from Customers $93,970

Cash Payments to Suppliers and Employees ($87,000)

Cash Generated from Operations $6,970

Income tax paid ($4,000)

Net Cash from Operating Activities $2,970

Cash flow from Investing Activities

Purchase of Office Building ($212,700)

Net Cash from Investing Activities ($212,700)

Cash flow from Financing Activities

Capital Investment $251,500

Promissory note (Five Year) $60,500

Dividends Paid ($6,200)

Net Cash from Financing Activities $305,800

Beginning Cash and Cash Equivalent $0

Movement during the year $96,070

Ending Cash and Cash Equivalent $96,070

Required 2 ;

It shows the liquidity position of the Company, which proves its credit worthiness.

Explanation:

I have prepared the Cash Flow Statement using the Direct Method in terms of IAS 7.

Cash Payments to Suppliers and Employees = ($66,500 + $20,500

= $87,000

Related Questions

Rent of $1,000 per month is paid for the next twelve months on October 1st, 1988. As a result of this transaction:

X: 1988 net income will decrease by $3,000

Y: 1988 equity will increase by $12,000

A. X
B. Y
C. Both
D. Neither

Answers

Answer:

the answer would be Neither

List five types of damage that can happen to you because of identity or financial information theft. Use online resources to research the implications of identity theft. Give us five ways how it can impact your life.

Answers

The five types of damage caused due to financial information theft are as follows:

A credit card was declinedRejected for a different loan type, such as a student, mortgage, or personal loan Due to identity theft, you're currently in debt. Calls from collection agencies related to fraudulent accounts No checking or savings account can be opened

When someone utilizes another person's personal information for financial gain, it is called financial identity theft. This type of identity theft is the most prevalent (together with the credit card example previously mentioned). Many different types of financial identity theft exist, including The details of your credit card may be used by fraudsters to make purchases.

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Amber’s starting salary for her new job will be $35,500 a year. How much will she pay to the Social Security system for her first year assuming total FICA withholdings of 7.65%?

Answers

Answer:

I dont know the answer but I want whatever job she has

LEONE COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit General and administrative expenses Selling expenses Net income $ 84,000 84,000 92.000 $ 3,251,000 $ (8,000) 3,259,000 127.000 603,000 2,529,000

How do you find the cost of goods manufactured?

Answers

The cost of goods manufactured (COGM) is the cost of all the products that a company has manufactured during a period.

How to calculate

It is calculated by adding the beginning finished goods inventory to the total manufacturing costs, and then subtracting the ending finished goods inventory.

In the income statement you provided, the cost of goods manufactured is calculated as follows:

COGM = $92,000 + $3,251,000 - $127,000 = $3,224,000

Therefore, the cost of goods manufactured for Leone Company is $3,224,000.

Here is the formula for calculating COGM:

COGM = Beginning finished goods inventory + Total manufacturing costs - Ending finished goods inventory

The total manufacturing costs include direct materials, direct labor, and manufacturing overhead.

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What are the essential elements of a great presentation?

Answers

The essential elements of a great presentation include having a clear objective, useful to your audience, well-rehearsed, presentation deck uses as little text as possible, your contact information is clearly featured, and includes a call-to-action.

A 15-year annuity of thirty $8,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now.
a. If the discount rate is 11 percent compounded monthly, what is the value of this annuity 4 years from now?
b. What is the current value of the annuity?

Answers

The value of the annuity 4 years from now is $254,757.45.

What is annuity?

An annuity is a financial product that provides a guaranteed income stream to an individual in exchange for a lump sum or periodic payments. The most common type of annuity is a retirement annuity, which is purchased with retirement savings and provides a regular income throughout retirement. An annuity may be fixed, where the payments are predetermined and do not change over time, or variable, where the payments are based on the performance of underlying investments. Annuities are commonly used to supplement retirement income, protect against market volatility, and provide a source of income that cannot be outlived. However, annuities can also be complex and come with fees and restrictions, so it's important to carefully consider all the factors before deciding to purchase an annuity.

PV = C * [(1 - (1 + r) ^(-n)) / r]

C = $8,000

r = 0.11 / 2 = 0.055 (11% compounded semiannually)

n = 15 * 2 = 30 (30 semiannual payments)

FV = $8,000 * [(1 + 0.055) ^30 - 1] / 0.055

FV = $342,961.86

PV = $342,961.86 / (1 + 0.055/2)^(2*4)

PV = $254,757.45

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how many cowboy hats can you fit on your head

Answers

Answer:

Explanation:

Depends on the size of your head but I can fit 10 on mine

since this conflict is dysfunctional and hurting our business, i recommened oyu speak with both cheryl and rick. what type of issues you thik you'll need to address

Answers

As conflict is dysfunctional and hurting the business; in recommending to oyu speak with both cheryl and rick, we will advice conflict resolution to the firm.

What does conflict resolution mean?

Basically, conflict resolution is defined as the means and activities that facilitate the peaceful resolution of conflict and punishment. Committed group members try to settle group problems by actively conveying to the rest of the group information about their competing motives or ideologies (e.g., intentions; reasons for having specific beliefs) and engaging in collective negotiation.

The dimensions of resolution generally parallel conflict dimensions in how the dispute is processed. The way disputants interpret and perceive the disagreement is through their beliefs, perspectives, understandings, and attitudes.

An emotional resolve or emotional energy, is the way disputants feel about a problem. The behavior of the disputants is reflected in behavioral resolution. Finally, there are numerous strategies and procedures for dealing with disagreement.

Answers

It may be wise for Rickie to evaluate her spending habits and prioritize her financial goals while considering her enjoyment of shopping.

Should Rickie Cut Back on Shopping?

Rickie should take a closer look at her spending habits and financial goals. She could start by creating a budget and tracking her expenses to gain a clear understanding of how much time and money she is spending on shopping.

By evaluating her spending patterns, Rickie can identify areas where she may be able to cut back or make adjustments, without completely giving up something she enjoys. For example, she could set a monthly shopping budget, limit impulsive purchases, or look for ways to save money while still enjoying the shopping experience, such as shopping during sales or using coupons.

Answers

Answer:

The law of supply states, that higher prices lead to higher quantities of things.

Explanation:

I searched it up. I was confused. Sorry for searching it up.

A retailer spends a $500 per month to keep its online shop active and updated. The store acquires shirts at a cost of $5 per shirt. Each shirt sells for a marginal benefit of $10 per shirt.

How many shirts would you have to sell for it’s marginal benefits to be greater than its total costs?

Answers

Answer:

100 shirts

Explanation:

Borrowing from the contribution margin concept, the level where the marginal benefit is greater than total costs is the break-even point.

Break-even point = fixed cost / contribution margin per unit.

For this retailer,

Fixed costs are $500,

The contribution margin per unit = selling price- variable cost

=$10-$5

=$5

Break-even point

= $500/$5

= 100units

The retailer would have to sell 100 shirts for it’s marginal benefits to be greater than its total costs.

What is breakeven point?

This is the point where the additional gain derived is more than the total costs.

Applying break even point, we'll have

Break-even point

= Fixed cost / Contribution margin per unit.

Fixed cost

= $500

Contribution margin per unit

= Selling price - Variable cost

= $10 - $5

=$5

Break-even point

= $500 / $5

= 100units

Hence, the retailer would have to sell 100 shirts for it’s marginal benefits to be greater than its total costs.

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Match the design thinking stage to its description.

Question 14 options:

The design team creates multiple inexpensive versions of the product, known as minimum viable products (MVPs)

Spend time gaining an understanding by observing, engaging, and empathizing with customers to understand their experiences and their needs better

Analyze observations and information to identify the core problem

The design team comes up with solution ideas

The design team identifies any additional problems and refines the final solution before the final product is produced and released to customers

1.
Empathize

2.
Define

3.
Ideation

4.
Prototype

5.
Test

Answers

The design team creates multiple inexpensive versions of the product, known as minimum viable products (MVPs) - Prototype.

Spend time gaining an understanding by observing, engaging, and empathizing with customers to understand their experiences and their needs better - Empathize

Analyze observations and information to identify the core problem - Ideation

The design team comes up with solution ideas - Ideation

The design team identifies any additional problems and refines the final solution before the final product is produced and released to customers - Test

What is a Design thinking?

Generally, a design thinking means the set of cognitive, strategic and practical procedures used by designers in the process of designing and to body of knowledge that has been developed about how people reason when engaging with design problems. A design thinking is also associated with the prescriptions for the innovation of products and services within business and social contexts.

The term "design thinking" is been used to refer to specific cognitive style, a general theory of design (which is way of understanding how designers work), and a set of pedagogical resources (through which organisations or inexperienced designers can learn to approach complex problems in a designerly way).

Answers

Leslie Moore's markdown dollar amount will be $39 and her resulting sale price will be $26.

What is pricing strategy?

Pricing strategy is known as the changing in price of a product or service according to the demand of the product or service in the market. When the demand for a said product is high the price for the product is increased and if the demand of a product is low then the price is reduced.

Leslie Moore runs a hammock shop and she have a pricing strategy according to which she is now willing to reduce the price by 60%. The amounts are calculated as sale price multiply by 60% the amount is the reduction in the sale price, the reduction amount is deducted from the sale price.

The calculation is shown below,

$65 * 60% = $39

$65 - $39 = $26

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True or false: Both for-profit and nonprofit businesses have the same goal of earning a profit

Answers

Answer:

Explanation:

profit businesses have the only motive to gain profit whereas non profit businesses main motive is to provide the supply of goods and services to the general public.....without a fee

it’s false
each of them have a different reason of being a business, profit is obviously for money but non-profit is more for of a cause to help or change

What kind of system is the United States economy based on?

Answers

Answer:

capitalism

Explanation:

usa mainly runs on capitalism

Davis Corporation borrowed $50,000 on January 1, Year 1. The loan is for a 5-year period and has an annual interest rate of 9%. At the end of each year, Davis will make a payment of $7,791, which includes both principal and interest. The amount of the payment for Year 1 that is interest expense is $4,500. Group startsTrue or False

Answers

The amount of the payment for Year 1 that is interest expense is $4,500.

The interest paid on loan is a function of the interest rate and the amount borrowed. In order to determine the interest paid, the interest rate would be multiplied by the amount borrowed.

Interest = interest rate x amount borrowed

interest rate = 9% amount borrowed = $50,000

9% x $50,000

0.09 x $50,000 = $4,500

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According to Dr. Ridel's Levels of Critical Thinking in Chapter 1, what level of critical thinking applies to your current status? Discuss how you will use the "8-Step process to critical thinking" in your personal and professional life. Provide examples to support your answers.

Answers

Answer:

how to write it inthe morning and evening so much more than happy

What the term of reducing the price of an item in order to encourage sales

Answers

Answer: Promotional Pricing would reduce the price of an item in order to encourage sales.

Explanation:

What Is Promotional Pricing? Promotional pricing is a sales strategy in which brands temporarily reduce the price of a product or service to attract prospects and customers. By lowering the price for a short time, a brand artificially increases the value of a product or service by creating a sense of scarcity.

Hope this helps :)

Answer:

It is called Predatory pricing

Explanation:

Promotional pricing is when a sales strategy when brands temporarily reduce the price of a product so it attract prospects and customers. when they lower the price for a little time the brand artificially increases the value of a product.

Discussion Questions
If someone owes you money, and that person or business goes into bankruptcy, why
would it make a difference if you were a secured or unsecured creditor?
>
o First define secured and unsecured creditor then explain.

Answers

Hi how was your day mine was fine

QUESTION 2 / 10
Which of the following is the BEST reason to use cash for making purchases?
A. Keeping track of how much you have spent is simple.
B. Splitting bills with friends is easier.
C. Getting more cash from an ATM machine is easy to do.
D. Knowing what you have spent your money on is
simple.

Answers

A. Would be the best answer

The best reason to use cash for making purchases is keeping track of how much you have spent is simple. Thus, option A is correct.

What is purchases?

Purchasing is the process through which a company or organization acquires products or services in order to achieve its objectives. Although numerous organizations seek to establish standards in the purchasing process, practices can vary widely amongst firms.

Cash makes budgeting and sticking to it simpler. When you pay with cash that you've planned for purchases, it's easy to keep track of where your money is going. It's also eye-opening and keeps you grounded in terms of how much money is going out vs coming in from week to week or month to month.

The main incentive to utilize cash for purchases is that it is simple to keep account of the amount you have spent. As a result, option A is correct.

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In order to be fully rested before Angel’s big History test, she should get at least________hours of sleep.
a.
8
c.
9
b.
7
d.
10

Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:

B. 7 hours

Explanation:

right on edg

Answer: B. 7 hours

Explanation: On Edge!

Ronald asked his boss how to wax the floors, but he didn’t understand the answer. He should ______.

a.

wax the floors using what he already knows

b.

avoid waxing floors until he sees someone else do it

c.

ask for clarification on how to wax the floors

d.

complain to his boss’ supervisor

Please select the best answer from the choices provided

A

B

C

D

Answers

Answer:

C; ask for clarification on how to wax the floors

Explanation:

Ronald asked his boss how to wax the floors, but he didn’t understand the answer. He should ask for clarification on how to wax the floors. Thus, option 'C' is the correct option.

How does clarification improve communication?

Clarification in communication refers to conveying to the speaker the primary idea of what was just spoken, as perceived by the audience. As a consequence, the listener's comprehension is examined, and any discrepancies or misunderstandings are cleared up. Clarifying, as a follow-up to reflecting, reassures the speaker that the listener is making an effort to comprehend the messages they are delivering.

Asking questions or, on rare occasions, summarizing the speaker's remarks might help to clarify. To properly listen to people, we as leaders must ask clarifying questions. Asking for clarification is to elicit more details so that we can completely comprehend the sender's intended message, which is sometimes different from what they actually stated.

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which of the following statements is true of entrepreneurship?

Answers

Entrepreneurs often work long hours and must take on the financial responsibilities of the business.

Dakota Coffee Company produces Columbian coffee in batches of 7,500 pounds. The standard quantity of materials required in the process is 7,500 pounds, which cost $6.00 per pound. Columbian coffee can be sold without further processing for $9.80 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.60 per pound. The processing into Decaf Columbian requires additional processing costs of $6,300 per batch. The additional processing will also cause a 5% loss of product due to evaporation.

Question Content Area
a. Prepare a differential analysis dated December 11 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). If required, use a minus sign to indicate a loss.

Answers

The differential analysis is attached accordingly. The workings are indicated below.

What is differential analysis?

Differential analysis is a decision-making approach that analyzes the net effects of two alternatives by examining the advantages and costs associated with each. The option chosen has the greatest advantageous (or least adverse) financial impact.

To arrive at the figures in the differential analysis first we derive the Revenue from selling regular Columbian:

Recall that:

Revenue = Sales x Quanity Manufactured; hence

9.8 x 7500

= $73,500

Revenue from Decan Columbian:

11.6 x (95% x 7500)

= 11.6 x 7125

= $82, 650

Cost of selling regular Columbian

Cost = Cost x Units produced

= 6 x 7500

= $45,000

Compute the cost of selling Decaf Columbian

In this case, Cost = Product Cost + Cost of processing

= 45,000 + 6300

= $51,300

Hence the figures indicated in the differential analysis.

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Dakota Coffee Company produces Columbian coffee in batches of 7,500 pounds. The standard quantity of

Question 4 of 10
What business practice is most helped by free trade practices?
O A. Competition
B.
Standardization
C. Preserving economic resources
D. Increasing import revenues
SUBMIT

Answers

A is the answer I think

Mac Book Air is selling for $1,799 now. Apple's financing plan dictates an annual percentage rate (APR) of 18.25% with equal monthly payment for 68 months. The first monthly payment is due immediately. How much are consumers required to pay each month for one Mac Book Air under this plan

Answers

The consumers are required to pay $334.11 each month for one Mac Book Air under Apple's financing plan.

The consumers are individuals or households who purchase and use goods and services to satisfy their needs and wants. They are the end-users of products and services offered by businesses and organizations.

In the context of economics, consumers are an essential part of the demand side of the market, driving the production and distribution of goods and services.

To determine the monthly payment required under Apple's financing plan, we can use the formula for the equal monthly payment of a loan

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What is potentially problematic about using religious symbols in
advertisements?

Answers

Answer:

They might offend the intended audience.

Explanation:

If you have a certain religion and one company advertises one of those religions that is not yours customers may take offense to it and you will have less customers therefore less profit.

Potentially problematic, using religious symbols in advertisements is likely to be reckoned offensive.

What is an advertisement?

The term advertisements refer to promoting brands or any products digitally or through a campaign by which the advertisement can be there in it by an advertisement the sales of the product can be there, and more revenue can be generated from it. By the advertising. The more about the product sales be there in it.

Using religious symbols in advertising make problematic can be there, and using religious things in advertising can hurt people's internal sentimental as well the person is more like to be religious as compared to the advertisements in it. Using religious things make the advertisement more potentially and more.

Therefore, it is always a problem to use advertisements in religious symbols.

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I am better at my job than most of the other people who have the same job title agree or disagree

Answers

Disagreed. You cannot say that you are better at your job than others who have the same job title.

How to answer questionnaire questions?

While providing the answer to a questionnaire, it is very important that a person would try to be as truthful as possible.

The reason they have to be truthful is so that they would be able to give the best answer that would be useful for the research.

In a question like this, I used disagreed because it is not possible that you have met all of the persons that have the same job description as you do.

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1. A Letter of Credit (or LC) is one of the major pillars on which International Trade stands.
a) What is a Letter of Credit?
b) With the aid of a diagram, explain the LC procedure.
c) Explain to the CEO of Mbo Limited (a company in Ghana) which wants to buy large quantities of White Refined Granulated Sugar from Tiffany Anderson Group Ltd (a company in Brazil) why the LC is the most acceptable method to both the exporter and importer in a transaction such as he is about to undertake.

Answers

Answer:

Letter of Credit (LC)

a) Mbo Limited's bank can issue a letter of credit to Tiffany Anderson Group Ltd.'s bank a credit guarantee by which Mbo's bank guarantees that Mbo Limited will settle Tiffany Anderson Group Ltd in full for the amount involved in their trade relationship. It is usually used by importers and exporters to settle trade credit. It is the most acceptable means of settling debts across national boundaries.

b) A diagram is attached. The procedures are detailed below:

A. A Sales Contract is established between the seller (exporter) and the buyer(importer).

B. The importer makes a request to its bank for issuance of letter of credit.

C. The importer’s bank issues a letter of credit to the exporter’s bank.

D. The exporter’s bank advises on the letter of credit to the exporter.

E. The exporter presents export documents (bill of lading and invoice) to its bank.

F. The exporter’s bank delivers the documents to the importer’s bank.

G. The importer’s bank debits the account of the importer for the stated amount after confirming that the documents are in order.

H. The importer’s bank pays the purchase price to the exporter’s bank.

I. The exporter’s bank credits the exporter’s bank to show payment. This ends the transaction.

c. The letter of credit guarantees both the Mbo Limited and Tiffany Anderson Group Ltd. It guarantees and ensures that payment for goods are not paid to Tiffany Anderson Group Ltd until there is evidence that the correct goods and quantity have been shipped by Tiffany Anderson Group Ltd (through the bill of lading). It also assures Tiffany Anderson Group Ltd of payment for shipped goods since the documents cannot be released to Mbo Limited unless Mbo Limited's account had been debited and the money transmitted to Tiffany Anderson Group Ltd through its bank.

Explanation:

As above.

I need the answer please help

Answers

As given that the taxable state income for the year is $70,000, the applicable tax rate is 5.5%, thus, the tax payable is $3,850.

What does a progressive tax means?

A progressive tax is one in which the tax rate rises in proportion to the taxable amount. The term progressive refers to the manner in which the tax rate rises from low to high, resulting in a taxpayer's average tax rate being less than the person's marginal tax rate. The term can refer to either individual taxes or an entire tax system.

We are given that the taxable state income for the year is $70,000. Note that for this salary range, the tax rate of 5.5% is applicable.

Tax payable is computed as:

= $70,000 * 5.5%

= $3,850