Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business. To identify: Amount of the operating activity.

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Answer 1

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

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Sycamore Corp. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget indicates that 7,500 direct labor hours will be required in July. The variable overhead rate is $4.20 per direct labor hour. The company's budgeted fixed manufacturing overhead is $95,000 per month, which includes depreciation of $8,200. All other fixed manufacturing overhead costs represent current cash flows. The July cash disbursements for manufacturing overhead on the manufacturing overhead budget should be _.

Sycamore Corp. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget indicates that 7,500 direct labor hours will be required in July. The variable overhead rate is $4.20 per direct labor hour. The company's budgeted fixed manufacturing overhead is $95,000 per month, which includes depreciation of $8,200. All other fixed manufacturing overhead costs represent current cash flows. The July cash disbursements for manufacturing overhead on the manufacturing overhead budget should be _. Answer

Answer 2

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

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Answer 3

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

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Answer 4

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Answer 6

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Answer 7

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Answer 8

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550