Answer:
C. $0
Explanation:
Data provided in the question
Purchase value of the bond = $30,000
And, the market value of the investment at the ending year is $29,000
So by considering the above information, the $0 would be reported in the net income as only realized gains are transferred to the income statement
While the unrealized gain or loss on available for sale securities transferred to Comprehensive income statement and accumulated amount goes to Balance Sheet as a Accumulated Other Comprehensive Income
Answer: Issued dividends while maintaining a constant number of outstanding shares of stock
Explanation:
A negative cashflow is meant to indicate that cash has left the company. If this is in relation to the owners then it either means that the company has repurchased shares or paid out dividends.
From the options, the correct answer would be that the company issued dividends while maintaining a constant number of outstanding shares of stock. This would be reflected in the Financing section of the Cashflow statement.
Answer:
6.30%
Explanation:
For offering for the investor to prefer them to the corporate bond we need to calculate the after tax return which is shown below
After tax return is
= Before tax return × (1 - tax rate)
= 0.09 × (1 - 0.30)
= 0.063 or 6.30%
As the after tax return is 6.30% the same is to be offered for the investor
Hence, the correct answer is 6.30%
Answer:
A. Specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage.
B. Specialization allows businesses to take advantage of economies of scale.
Explanation:
Specialization refers to a situation where an individual or group of individuals concentrate on a particular aspect or field. Workers can focus on those aspects of the production process where they have the necessary skills. Similarly, if an organization specializes in producing a particular product, the organization will be able to obtain benefits associated with production on a large scale. Therefore options A and B are correct.
Option C is incorrect since workers will focus on a particular task. Option D is a disadvantage of specialization and is therefore incorrect.
Answer:
The GDP will grow above or will be greater the $200 billion amount during the 14th year from 2001 which will be 2015.
Explanation:
To calculate the GDP in a particular year after 2001, we know the equation will be,
GDP = 112 * (1+0.043)^t
Where,
If we want to calculate the year in which GDP will be greater than 200 billion, we need to substitute the GDP part in the equation with amount of say 200 billion.
200 = 112 * (1+0.043)^t
200 / 112 = (1.043)^t
1.785714286 = (1.043)^t
Taking log on both sides and dividing the equation for t.
log(1.785714286) / log(1.043) = t
t = 13.772 years rounded off to 14 years
So, the GDP will grow above or will be greater the $200 billion amount during the 14th year from 2001 which will be 2015.