Answer:
the total goodwill resulting from this operation = $1,333,333
Explanation:
Since Midpark paid $1,000,000 for 30% of Cycling Pros, that would mean that Midpark determined that the total value of Cycling was: $1,000,000 / 30% = $3,333,333
If the book value of Cycling was $2 million, then the total goodwill resulting from this operation = $3,333,333 - $2,000,000 = $1,333,333
Answer:
The additional sale will not conflict with regular sales.
Explanation:
Accept business at a special price if the additional sales conflict regular sales. That is, special price must maintain the status quo or improve it.
Answer:
$22,640
The explanation is shown below:-
Explanation:
The computation of cash flow from operating activities using the direct method is shown below:-
Direct method
Pizza International, Inc.
Statement of cash inflow
Cash flow from operating expenses
Cash received from customers $143,777
($143,951 - $174)
Cash Paid
To suppliers ($53,773)
($45,700 - $651 + $8,724)
To salaries and wages ($56,855)
For office expenses ($7,730)
($7,785 + $668 - $723)
For income tax expenses ($2,779)
($50 + $2,729)
Net cash inflow from operating
activities $22,640
It is mainly due to no depreciation expenses for cash products. Depreciation expenses do not contribute to cash outflows. Because of which company has reported large cash inflow from operations compared to near net loss.
Answer:
a. Revenue recognition principle
Explanation:
The revenue recognition principle refers to the principle in which the revenues are recorded when it is realized or earned. It follows the accrual basis of accounting
It is not recorded when the cash is actually received.
When the sale is made, the same is to be shown in the books of accounts
Therefore as per the GAAP, the revenue should be addressed by revenue recognition
hence, the correct option is a.
Answer: 9.45%
Explanation:
From the question, we are informed that the assets for BIZZ0 in 2018 were $187,300, the liabilities for that year were $275,600; and the net income was $17,700.
The return on income for the year will be:
= ( Net Income / Total Assets ) × 100
= ($17,700 / $187,300) × 100
= 0.0945
= 9.45%