Net income or (Loss) = $43,128.
The provided information states that:
Elegant Decor Company
Forecasted annual income statement
Under the strategy to eliminate Department 200
Sales = $437,000
Cost of goods sold = $261,000
Gross profit = $176,000
Operating expenses
Direct expenses:
Advertising = $15,500
Store supplies utilized = $4,500
Depreciation of Store Equipment = $4,200
Total Direct Expense = $24,200
Allocated Expenses:
Sales Salaries = $64,000
($104,000-2×$24,200+($31,200÷2) = $40,000)
(104,000-$40,000)
Rental Expenses = $14,180
Bad debt expense = $9,400
Office salary = $15,600
($31,200 - ($31,200 ÷ 2))
Insurance expense = $1,724
($2,200 - $476)
Miscellaneous expense = $3,728
($4,000 - $272)
Total Allocated Expenses = $108,632
Total Expense = $132,872
($108,632 + $24,200)
Net income or (Loss) = $43,128
($176,000 - $132,872)
Answer:
The right choice is option "A": Sender encodes the message.
Explanation:
Communication refers to the act of conveying information between individuals. The communication process consists of five (5) stages: encoding, planning, medium, decoding, and feedback. In the encoding phase, the message to be conveyed is formulated in the form of letters, words, or symbols prior to being transmitted through the channel.
Therefore, Crystal Jenkins is engaged in the encoding phase of communication by drafting a recommendation report.
The calculation for free cash flow can be summarized as follows:
Revenue 12000000
Subtract: Expense (8000000)
Subtract: Depreciation (1500000)
Earnings Before Tax 2500000
Subtract Tax (750000)
Earnings after tax 1750000
Add Depreciation 1500000
Total Cash Earnings 3250000
Subtract: Change in Working Capital (500000)
Subtract: Asset Purchase (700000)
Free Cash Flow 2050000
Therefore, Free Cash Flow can be computed in this manner.
