Mingo Company Has Been in Business Several Years

question 38

Essay

Mingo Company has been in business several years. During January of 2018, the following transactions occurred:
.Paid employees $6,000 for wages during January.
.Paid $2,000 cash for other operating expenses of which $1,000 related to December and the balance related to January.
.Paid utilities and rent for January in the amount of $1,800.
.Paid a cash dividend to shareholders in the amount of $900 during January.
How much is total Expenses that Mingo Company will report for January 2018? Why is this amount different than the amount paid during the month?

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Definitions:

Definition

A statement expressing the essential nature of something.

Operating Cash Flow

This refers to the cash generated from a company's regular business operations, indicating its ability to generate sufficient positive cash flow to maintain and grow its operations.

Weighted Average Flotation Cost

The average cost of issuing new securities, weighed by the proportion each method of financing contributes to the total new financing, considering costs like underwriting fees and legal expenses.

Flotation Costs

The costs a company faces when issuing new securities, including fees for underwriting, legal services, and registration.