# Contract law

Good Essays
383 Words
Grammar
Plagiarism
Writing
Score
Contract law
Decrease in trades and other payables + provisions (inclu NCL)

Cash flow statement reports amount as - 6129
This includes the \$714 CSR adj that we made in calculating NPAT (which doesn’t appear in the actual reported NPAT)
So this figure needs to exclude the \$714 otherwise we will double counting it
The amount of decrease should be
-6129 + 714 = -\$5415

The 714 represents a loss that would reduce decrease in the payable that is a negative cash flow and reason why we making adjustment if we don’t then will double count it

Repayment of borrowings not same as in cash flow statement. qUESTIOn is why is repayment of borrowings of -36326 reason is, if we go further down to steel and tube actual cash flow statement – they calculated a net movement in cash and cash equivalents of 46326 so cash went up by that amount. But looking at next items the balancewas minus amt of -53828. What that means is firm had a bank overdraft of that amount . At end of year reduced to -7502 but still in credit balance. So bank overdraft is form of borrowings so firm, what is it done paid back some of those borrowings – paid back 46326 to reduce it to 7502. What we have done on worksheet we actually taken that payment of 46326 and included it as part of repayment of borrowings in the financing section of this combined statements. So taken 10000 dollars already reported in cash flow statement which was a positive amt. Then firm paid back 46326 so net is 36326

Need to classify items now

Income tax expense – have to split it up between amt related to operations and amt related to capital cash flow part of the interest expense. To do this:
Income tax
FCF amount = reported tax expense + the tax benefit on interest
=11177 + (6472*0.3)
=11177 + 1942
=13119
After tax interest
CAPCF aMOUNT
= I ( 1-.3)
= 6472 1
=4530

Decrease in WC

Increase in income tax payable 1030 (Decrease in Wc)
Increase in Inventories -2996

## You May Also Find These Documents Helpful

• Satisfactory Essays

(TCO E) In an income statement prepared using the variable costing method, variable selling and administrative expenses would…

• 681 Words
• 3 Pages
Satisfactory Essays
• Satisfactory Essays

In this assignment I will be giving advice to Rick’s girlfriend on whether she has a legal right to return the laptop that Rick bought for her. I will be analysing whether a valid contract was formed and who it was formed with.…

• 1149 Words
• 5 Pages
Satisfactory Essays
• Good Essays

Cyril made two contracts. The first was to have his house painted one month from the date of the written contract. The second was for his neighbor's 1957 Ford Thunderbird. Each contract was definite and clear in all respects. As to the house painting, Cyril inquired with the painter as to when the work could begin. The painter explained that he was extremely busy and was not sure if he could fulfill the contract. Cyril flew into a rage and immediately hired someone else who painted the house, but at a higher price. Cyril then sued the painter, claiming that there was an anticipatory repudiation of the contract by the painter.…

• 265 Words
• 2 Pages
Good Essays
• Powerful Essays

1.Eagle Stores, Inc. borrows \$5,000 each from EZ Loan Corporation, First National Bank, and Great Products Corporation. Eagle uses its "present inventory and any thereafter acquired" to secure the loans from EZ Loan and First National. EZ Loan perfects its interest on April 1, followed by First National on April 5. Eagle buys new inventory on April 10 from Great Products and signs a security agreement, giving Great Products a purchase-money security interest (PMSI) in the new inventory. On the same day, Great Products perfects its interest and notifies EZ Loan and First National. Eagle takes possession of the new inventory on April 15. On April 20, Eagle defaults on all of the loans.…

• 1963 Words
• 7 Pages
Powerful Essays
• Powerful Essays

1. Structure and execute a DCF valuation of all the MW reserves using APV. How much are the reserves worth? Is your estimate more likely to be biased high or low? What are the sources of bias?…

• 755 Words
• 4 Pages
Powerful Essays
• Satisfactory Essays

Yes, common law contracts also apply to the scenario. Article 2 only covers tangible items, and everything else is than governed by common law contracts. An example is Grocery Inc 's contracts with vendors are covered by the UCC because the involvement of the sale, but a vendor or an individual who stocks the shelving themselves (performing a service) would be covered under common laws.…

• 390 Words
• 2 Pages
Satisfactory Essays
• Good Essays

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.…

• 1491 Words
• 4 Pages
Good Essays
• Good Essays

Sales Costs and expenses Operating income Non-operating items Income before income taxes Income tax expense Net income Effective tax rate…

• 521 Words
• 3 Pages
Good Essays
• Satisfactory Essays

Duration is also important when drafting a contract because knowing how long someone will be bound to a commitment should be a priority.…

• 339 Words
• 1 Page
Satisfactory Essays
• Satisfactory Essays

The owners of the business over purchased the goods as compare to other months so their closing balance gone negative. The company should monitor its operations. If they do not monitor their operation then expenses of the company will rise and revenue will fall. The negative cash flow occurs because of this reason. The statement of cash flow is divided into three parts; operating, investing and financing. When cash flow adds these parts, all of the parts can reduce or contribute the problems of cash flow.…

• 537 Words
• 2 Pages
Satisfactory Essays
• Good Essays

A long term debt of \$2,400,000 would need to be borrowed at 10% interest rate per year from a former Tire City’s investor/lender, Mid Bank. However, the loan terms and conditions required it to be taken as-needed basis, in two separate parts: \$ 2Million in 1996 and the rest \$400,000 in 1997. TCI had borrowed funds from MidBank in 1991 to build a warehouse. The balance due on this loan was \$875,000 at the end of 1995. TCI also established a line of credit at MidBank in 1991. Till 1995, TCI had not borrowed any money under this credit arrangement. Consequently, the inventories need to be cut down by more than \$ 500,000 due to the disruption caused by warehouse expansion project. Keeping these conditions intact Mr. Martin need to prepare Tire City’s pro forma statement.…

• 1023 Words
• 5 Pages
Good Essays
• Good Essays

The respondent is unable to justify the violations of Section 8 and 10 of the canadian charter of rights and freedoms (charter) with regards to section 24 (2) of the charter. Section 24 (2) states that where in proceedings under section (1), a court concludes that evidence was obtained in a manner that did not infringe or deny any rights of freedoms guaranteed by the charter, the evidence shall not be excluded if it is established that, having regard to all the circumstances, the admission of it in the proceedings would bring the administration of justice into disrepute (charter).…

• 797 Words
• 4 Pages
Good Essays
• Good Essays

The process of turning a bill into a law is probably one of the most complicating processes. The process of making a bill is a successive procedure which is not just adding a few rules to a paper and calling it a day. Before a bill is made they have to make sure all the rules are constitutional and does not infringe people's rights. Tis’ a stressful job to vote on a rule that some people could like and others could decide. The bill must first get passed in both houses of congress by majority ,than it gets sent out to the president and he can choose to pass it or veto it. If the president does sign the bill the bill will become a law; however if he doesn't it's U-Turned back to congress for another vote of the bill, this is where article V of the constitution proposes a Two - Thirds majority vote which allows a bill to pass without the signature of…

• 663 Words
• 3 Pages
Good Essays
• Satisfactory Essays

Allowance for doubtful accounts | | | | 70 | Cash | | | | 1,440 | | | Fixed Assets (at cost) | | | 6,200 | | | Inventories | | | | 1,730 | | | Note Payable (current) | | | | | 600 | Owner's Equity | | | | | 4,990 | | | | \$ | 11,530 | \$ | 11,530 | | | | | | | | During the period, the following transactions occurred: 1.…

• 447 Words
• 2 Pages
Satisfactory Essays