Answer:
a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)
c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)
d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)
Explanation:
Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:
- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.
- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.
- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt
Pay PMI (private mortgage insurance) which is the amount the lender charges to protect their interests in case the borrower stops paying and defaults on the loan.
Answer:
A stakeholder is any person or organization that has a legitimate interest in a specific project or policy decision. As an economist, whenever you are required to discuss the costs and benefits.
Answer:
Beranek Corp. should borrow $288,000 to achieve the target debt ratio.
Explanation:
40% of debt-to-asset ratio means that 40% of the assets should be Financed with debt and the remaining with equity. We have $720,000 worth of assets, simply multiply it with 40% and you will get the amount the needs to be borrowed.
If you have any queries about double entries of all this scenario, do leave a comment, I'll be pleased to help you.
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Answer:
The correct answer is "b) counteroffer"
Explanation:
In other words, a counteroffer is an "offer made in response to another"
For Don´s case, if the employers don´t make a counteroffer, Don would leave the company (for the benefits that the rival is offered). If you were a manager, and you appreciate his work, the right decision is "Don's employers decided to make him a counteroffer matching the offer from their rival firm ".
