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a business made an operating profit of £8000 but its bank balance has fallen by £3000. This could be due to?
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- A business has made a profit of £4,000 but its bank balance has fallen by £2,500. This could be due to A depreciation of £1,500 and an increase in stock of £5,000 B depreciation of £3,000 and the repayment of a loan of £3,500 C depreciation of £6,000 and the purchase of new fixed assets for £12,500 D the disposal of a fixed asset for £65,000 less than its book valueA Co made a profit for the year of $18,750, after accounting for depreciation of $1,250. During the year, non-current assets were purchased for $8,000, receivables increased by $1,000, inventories decreased by $1,800 and payables increased by $350. What was A Co’s increase in cash and bank balances during the year? A $10,650 B $10,850 C $12,450 D $13,150The executives at Peach, Inc., are confused. The company reports a net loss of $200,000, and yet its net cash flow from operating activities increased $300,000 during the same period. Is this possible? Explain.
- If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? A. B. C. D. Group of answer choices Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. There would be no effect on the accounts because the accounts are affected by the same amount. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.Deity Company had sales of P30,000, increase in accounts payable of P5,000, decrease in accounts receivable of P4,000, increase in inventories of P4,000, and depreciation expense of P4,000. What was the cash collected from customers? * a. P31,000 b. P35,000 c. P34,000 d.P25,000Martinez Company paid cash dividends of $1,700. Which two accounts are affected? What kind of accounts are they? Do the account balances increase or decrease? Increase Decrease Increase Decrease Do we debit or credit the accounts? Debit Credit Debit Credit
- An analyst has collected the following information regarding YYYYY: Earnings before interest and taxes (EBIT) = P700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P200 million. The corporate tax rate is 40 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow?Holy Company provided the following increase (decrease) in ledger account balances during the current year: Cash - 800,000; Accounts Receivable -(400,000); Inventory - 300,000; Equipment - 950,000; Note payable-bank - 500,000; Accounts payable - (600,000); Share capital - 1,000,000. There were no transactions affecting retained earnings other than a P1,500,000 cash dividend. What was the net income for the current year? Can you please show the solution?Consider the following information:Net income $20,000Depreciation 3,000Increase (decrease) in accounts receivable 1,000Increase (decrease) in prepaid rent (400)Increase (decrease) in accrued liabilities 900Cash paid to purchase office equipment 4,000The company would report a net cash inflow from operating activities of:A. $17,500B. $18,500C. $21,500D. $23,300
- The company decided to reduce its capital in-paid amounting to KD 100,000 and withdraw the amount from cash The debit side is the capital in-paid, amount of KD 100,000. O The credit side is the capital in-paid, amount of KD 100,000. O The debit side is the cash, amount of KD 100,000. L The credit side is the bank, amount of KD 100,000.A firm has $ 1.2 million in current assets and $ 1 million in current liabilities. If the company uses $ 0.5 million of cash to pay part of its accounts payable, what will happen to the “current ratio”?Required: (a) Prepare a cash flow statement for Chamber Corp for the year ended 31 December 2021. (b) Reply to the following questions put to you by one of the directors of the company: 'Can you please explain to me how we have a healthy profit yet our bank overdraft has reached a record level? Surely there must be something wrong with the profit calculations.'
