IKIBAN INC.
Statement of cash flow using indirect method for the year ending June 30, 2019
Particulars Amount
$
Cash flow from operating activities
Net Income 145,510
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation 81,600
Gain on sale of equipment -4,300
Change in operating assets & liabilities
Increase in accounts receivable -25,500
Decrease in inventory 34,200
Decrease in prepaid expenses 3,300
Decrease in accounts payable -16,500
Decrease in wages payable -11,300
Decrease in income taxes payable -2,700
Net cash flow from operating activities (A) 204,310
Cash Flow from Investing activities
New equipment purchased -80,600
Equipment sold 12,300
Net cash flow from Investing activities (B) -68,300
Cash Flow from Financing activities
Cash dividends paid -162,310
Common stock issued 83,000
Notes payable paid -30,000
Net cash flow from Financing activities (C) -109,310
Net Change in cash = A+B+C $26,700
Beginning cash balance $67,000
Closing cash balance $93,700
The Compromise effect. Heuristics represent methods of processing information in two essential ways when forming opinions. In contrast to a more meticulous processing of data, heuristics allow for the formation of opinions based on perception or the influence of others, which isn't always an accurate reflection of the reality. This practice is common in daily life and can be effective in forming necessary opinions. One demonstrated effect of this is the bias known as the compromise effect.
Answer:
$311,100
Explanation:
Solution
Let's remember the following details:
The assumption is that Chester Corp has reduced its workforce by = %
The estimated cost of exit interviews = 100
Normal separation expenses = $5000
Now,
The total number of employees = 305
The reduction in workforce = 20%
So,
The number of employees being laid off = 305 x 20% = 61 individuals
Thus,
The separation expense per employee = $5000
Cost for exit interviews = $100
Total expense per individual = $5,100
Now,
The overall separation cost = 61 individuals x total separation cost per employee
That is,
= 61 x 5100 = $311,100