Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please read the following P&L account carefully, to analyse the overhead structure of Knownow Inc.! - Knownow bought 3 vehicles in 2011 and paid a

image text in transcribed

image text in transcribed

Please read the following P\&L account carefully, to analyse the overhead structure of Knownow Inc.! - Knownow bought 3 vehicles in 2011 and paid a total of 120.000 for them. All three were sold for a residual value of 15,000 in cash (together) at the end of 2014. The company bought another two vehicles for 90.000 at the beginning of 2015 . These cars were sold for 50,000 in cash at the end of 2015. - 25,000 of the 80,000 marketing expenses in 2014 were actually paid in 2013 in order to secure advertising space for a campaign run early in 2014. - In order to help Knownow establish itself, the bank allowed them to defer the payment of 80% of their interest charges incurred in 2011 until 2012. The profit and loss accounts show the full amounts of interest incurred in each year. - The first Information system was bought for 60,000 in cash at the beginning of 2011, the second information system was bought early in 2014 , again for 60,000, but entirely written off over a two-year period. Please use the table on the following page to calculate Knownow's Net Cash Flow for each of the five years! Please fill in all the cells not already filled with either numbers, text or colour

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions