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1 year ago

The repayment of a note payable is classified in the statement of cash flows as a(n): _______

Business

1 answer:

kobusy [5.1K]1 year ago

8 0

The repayment of a note payable is classified in the statement of cash flows as a financing activity.

The financing activity in the cash flow statement focuses on how a firm raises capital and pays it back to investors through capital markets. The largest line items in the cash flow from financing activities statement are dividends paid, repurchase of common stock, and proceeds from the issuance of debt.

The cash flow from financing activities helps investors see how often and how much a company raises capital and the source of that capital.

To know more about financing activities here:

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Excerpts from Dowling Company's December 31, 2018 and 2017, financial statements and key ratios are presented below (all numbers

Rus_ich [418]

Answer:

Option (A) is correct.

Explanation:

Given that,

2018:

Accounts receivable (net) = $20

Net sales = $115

Cost of goods sold = $60

Net income = $20

Inventory turnover = 5.22

Return on equity = Return on assets × Equity multiple

= 10.3% × 2.36

= 24.308% or 24.3%

Therefore, Dowling's return on equity for 2018 is 24.3%.

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3 years ago

Police officers often use to get information from their witness?

Oxana [17]

The answer is judges.

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2 years ago

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Smith Jones Inc.'s stockholders are mostly individual investors, and there is relatively little institutional ownership. If seve

Anastasy [175]

Answer:

Small individual investors will benefit the most.

Explanation:

From the case given, it can be established that small individual investors represent the bulk of shareholders or business owners.

Also, from Smith Jones stock, we see that Pension and Mutual Fund constitute a bulk in the share position, and the direct intervention of shareholders motivate the management.

From the foregoing analysis, the shareholders holders have thus seek to incorporate corporate governance in the organization as a tool to reduce the agency problem between business owners and management. By this, management objectives and the shareholders could be aligned. The business owners singular objective is the profit maximization of their wealth, while the management is interested in their job security, status, mutual funds, pension and all. Since this objective of management has been duly taken care of by the shareholders, it is believer that this will boost the management morale and ultimately improve their performance. The result is thus increase in organisational performance with resultant growth in profit, share price and returns from the business. These are benefits to the individual investors.

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3 years ago

The capital structures of MNCs are influenced by ________. A. dividends paid by corporations B. domestic futures markets C. the

Galina-37 [17]

Answer:

D. international diversification

Explanation:

The Multinational corporations can reduce their risk by international diversification and reduced risk can increase debt capacity of MNC. The higher capacity to meet scheduled debt payment also reduces cost of capital.

The effect of international diversification on capital structure can be explained through

1. Co-insurance effect: Combining businesses with international firms provides reduction in operating risk and thereby increase debt capacity. This helps MNCs to include more debts in their capital structure.

2. Transaction cost theory. Internationalization is a way of internatilize intangible assets. Since intangible assets are not difficult to sale , international diversification helps MNCs to exploit their intangible assets. So MNCs with an eye of international diversification will try to develop these type of assets in their asset base.

3.Agency cost argument: MNCs will have high agency costs Diversification helps to reduce these agency costs International diversification creates larger markets and generates growth opportunities. Growth opportunities and debt ratios are inversely proportional .MNCs with higher growth opportunities will rely on equity rather than debt.

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2 years ago

Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and dire

Anvisha [2.4K]

Answer:

Results are below.

Explanation:

Giving the following information:

Total manufacturing costs, $8,450,000

Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)

Work-in-process inventory on January 1, 2017, $390,000

Cost of finished goods manufactured, $8,020,000

<u>First, we need to calculate the direct material and direct labor:</u>

Direct labor= Manufacturing overhead allocated/2.5

Direct labor= 3,375,000 / 2.5

Direct labor= $1,350,000

Total manufacturing costs= Direct material + direct labor + allocated overhead

8,450,000= Direct material + 1,350,000 + 3,375,000

Direct material= $3,725,000

<u>Finally, the ending work-in-process:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

8,020,000= 390,000 + 8,450,000 - Ending WIP

Ending WIP= $820,000

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2 years ago