Fiona signed an agreement to either buy or not buy nick’s vacant lot for $310,000 by a specific date. This agreement is called a bilateral contract.
<h3>What is bilateral contact?</h3>
A bilateral contract is a contract which is made between two parties. Under this contract, both parties make promises to each other on the terms and conditions. In this contract, the promise of one party turns into a consideration of the other party. It is the most common kind of contract which is binding in nature.
Fiona signed a contract promising to either purchase Nick's vacant lot for $310,000 by a certain date or not. It's referred to as a bilateral contract.
Learn more about the bilateral contracts from here:
brainly.com/question/14527253
#SPJ1
Answer:
Please see below
Explanation:
a. Current ratio
= Total current assets / Total current liabilities
= $262,787 / $293,625
= 0.89
b. Debt to assets ratio
= Total current liabilities / Total assets
= $293,625 / $439,832
= 0.67
c. Free cash flow
= Net cash provided by operating activities - Dividends - Capital expenditure
= $62,300 - $12,000 - $24,787
= $15,685
Answer:
$392,400
Explanation:
The computation of correct balance for ending inventory on December 31 is shown below:-
Correct balance for ending inventory = Ending inventory – Office supplies
= $416,000 - $23,600
= $392,400
Therefore for computing the correct balance for ending inventory we simply deduct the office supplies from ending inventory and ignore all other amounts as they are not relevant.
Answer:
$20,000 premium is amortized at the end of the first year.
Explanation:
Straight line amortization:
premium amortized = Premium / number of years
= ($5,200,000 - $5,000,000) / 10 years
= $200,000 premium / 10 years
= $20,000
Therefore, $20,000 premium is amortized at the end of the first year.
We can actually deduce here that a plant asset trade-in with commercial substance means that it changes the company's: Future cash flows.
<h3>What is cash flow?</h3>
In Business, cash flows actually refers to the amount of the net cash and its equivalent that is actually being moved or transferred in and out of the company.
When cash is received by the company or organization, it is said to be cash inflow while the cash that is being spent to run the daily to day activities of the company are known as cash outflow.
Thus, we see that a plant asset trade-in with commercial substance means that it changes the company's future cash flows. The future cash flow is the expected inflow and outflow of cash in the future.
Learn more about cash flow on brainly.com/question/735261
#SPJ1
