BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Calculate the cash flow for Mr. RabbaniActive Income:RM3, 000Passive Income:RM350Fixed Expenses:RM 2, 300Variable Expenses:RM 250Then, determine whether it is Deficit or Surplus.
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-800 (Deficit)
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1000 (Surplus)
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800 (Surplus)
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-1000 (Deficit)
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Explanation:
Detailed explanation-1: -The formula for operating cash flow is: Operating cash flow = operating income + non-cash expenses – taxes + changes in working capital The restaurant’s operating cash flow therefore equals $20, 000 + $1, 500 – $4, 000 – $6, 000, giving it a positive operating cash flow of $11, 500.
Detailed explanation-2: -Operating Cash Flow = Operating Income + Depreciation – Taxes + Change in Working Capital.
Detailed explanation-3: -Wages and salaries To calculate the actual cash paid for wages, salaries and other employee entitlements, we: take the opening accrued salaries balance from the statement of financial position, add the wages expense in the period, then deduct the closing balance of accrued salaries.
There is 1 question to complete.