understandable. Not as clear is how the new weekly demand of 1‚400 units generating $256‚000 per week in revenue (fig.3) was hurting profitability even further. The answer lies in the other half of operations‚ known as costs. Variable costs are expenses that are directly associated with the sale of a good. When variable costs are subtracted from sales what is left is known as the contribution margin which gives an idea of how profitable your sales are. CRU’s variable
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amount of cash that is generated by doing what you do. How much cash is generated by making‚ selling or providing services or products to your customers. These are the activities or accounts found on Income statement. All Cash Received – All Expenses for the Month Investment Flows – associated with purchase and sale of both fixed assets and equity investments in other firms or the “investing activities” • Inflows: Sales transactions • Outflows: Purchase transactions The amount of
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| |CSE Common SE |PV Present Value | |EOF End of |R.E. Retained | |Financing |Earnings | |(Period) |S.H. ShareHolder | |FV Future Value |S.E. ShareHolder | |IE Interest |Equity | |Expense |SYD Sum of the | |I.S. Income |Years’ Digits | |Statement |TA Total Assets | |FS Financial |TAT Total Assets | |Statements |Turnover | |LCM Lower Cost &|XA Uncollectable | |Market |Accounts
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4. The major difference is the treatment of interest expense. The accounting statement of cash flows treats interest as an operating cash flow‚ while the financial cash flows treat interest as a financing cash flow. The logic of the accounting statement of cash flows is that since interest appears on the income statement‚ which shows the operations for the period‚ it is an operating cash flow. In reality‚ interest is a financing expense‚ which results from the company’s choice of debt/equity.
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BUSINESS PLAN For I-MAX MULTIPLEX (Cinema Complex) Submitted To: Submitted By: Mr. Shree Ranjan Wasti Prakriti Shrestha Professor Smriti Pradhan Entrepreneurship & New Business Formation BBIS (2002-2006) Kathmandu College of Management ACKNOWLEDGEMENT We would like to thank our instructor‚ Mr. Shree Ranjan Wasti‚ for his guidance in preparing this business plan. Not to forget‚ we are also grateful to our librarian for providing us with the resources needed in
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No 1 This essay is about the funding process‚ organization‚ and expenses of the NHS in England (Harker‚ 2012). Bridean (2004) described money flow as the extent at which money flows into in an organisation‚ usually made from effective spending and financing activities. The components of cash flow must be evident on a planner so that it will be understood easily on how it occurred exactly. According to Donaldson & Gerard (2005)‚ he stated that if cash is not observed carefully‚ the return which might
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“a free education.” There are plenty of cons that come with paying students to play sports. According to Title IX‚ a federally-mandated law‚ if conferences and schools decide to increase the value of student-athlete scholarships to cover living expenses‚ they have to do it for women’s programs as well. This means that schools would have to‚ for example‚ increase the value of womens volleyball and softball scholarships as well. Schools have to stay in-accordance with Title IX‚ otherwise they’re risking
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title to assets may be desirable as a hedge against inflation. 2. Interest rates for leasing often are higher and a profit factor may be included in addition. 3. In some cases‚ owning the asset provides unique tax advantages‚ such as when bonus depreciation is permitted. (c) Since a long-term noncancelable lease which is used as a financing device generally results in
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information than cash-basis statements? Accrual basis does a better job of matching the sales with the expenses and the cash-basis often produces misleading financial statements. 8. Distinguish between the two categories of adjusting entries‚ and identify the types of adjustments applicable to each category. Accruals consist of accrued revenues and accrued expenses. Deferrals consist of prepaid expenses and unearned revenues. E3-7 The ledger of Piper Rental Agency on March 31 of the current year
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of long-term operational assets. Explain how different depreciation methods affect financial statements. Determine how gains and losses on disposals of long-term operational assets affect financial statements. Explain how expense recognition for natural resources (depletion) affects financial statements. Explain how expense recognition for intangible assets (amortization) affects financial statements. Understand how expense recognition choices and industry characteristics affect financial
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