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AnnyKZ [126]
1 year ago
14

Determine whether the following would be reported in the financing activities section of the statement of cash flows and, if so,

specify whether it is a cash inflow or outflow.
(a) Sale of bonds at a discount.
Business
1 answer:
Marat540 [252]1 year ago
7 0

While you buy a bond, you're loaning cash to both a government and a corporation. whilst these entities first difficulty the bonds, they're bought at "par", which means you lend, say, $a hundred, and at the adulthood of the bond, you'll acquire $100 lower back. at the time of the difficulty, the coupon charge is also set, primarily based on modern-day interest quotes and the entity's credit score. This determines the yearly or semiannual quantity you will acquire when buying the bond.

A bond can be bought on the secondary market before adulthood. however, the price of this bond will promote greater than par (i.e. a premium) if present-day interest quotes decrease than what they had been while the bond was issued and less than par if interest fees have gone up (i.e. a reduction).

An example, a bond is issued these days, maturing in 10 years with an annual coupon of five%. In 5 years, hobby fees have risen to 7%, so someone shopping for the bond with a five% coupon would demand a discount at the face price (in any other case, they could just buy the 7% bond at par).

Learn more about bond here: brainly.com/question/25965295

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Mary offers to buy Hal's desktop computer for $400. Hal sends Mary an e-mail of acceptance. The $400 is to be paid upon Hal's de
GenaCL600 [577]

Answer:

A. This is a bilateral, valid, executory contract

Explanation:

As in the given scenario, the offer and acceptance is made between the Mary and Hal which reflect the valid contract as in this both parties have expresses to enter into a contract

Plus, it is a bilateral contract in which both parties agree to do his/ her positions.

And, it is also an executory contract in which the contract is completed at some future i.e in this case the contract is completed when delivery and payment are made.

7 0
2 years ago
Hammer Time Company sells hammers that it purchases at a cost of $5. Hammer Time sells the hammers for $15. Last year, it sold 1
emmainna [20.7K]

Answer:

The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.

This would generate a decrease of $10,000 in the sales revenue

Explanation:

Understanding the way sales revenue is generated:

Units Sold * Unit Price = $Sales Revenue

If the selling price drops to $10

and units sold increase by 5,000

(12,000 + 5,000) * ( 15 - 5 ) = 17,000 * 10 = 170,000

Comparing with the previous year:

12,000 * 15 = 180,000

This policy decrease the sales revenue which makes the business less profitable.

8 0
3 years ago
Consider the overall effects on National Cleaning Service from selling and performing services on account for $ 7 comma 770 and
Gre4nikov [31]

Option C, National Cleaning​ Service's net income is 4,730

Solution:

The money a person earns, after deducting taxes and other deductions from gross revenue, is net income – also known to as the net profit, the net income or the bottom line.

For a company, the amount of income left after all costs, taxes and liabilities have been reduced is net income.

Net Income/Net Loss = Revenues - Expenses

Net Income/Net Loss = 7,770 - 3,040

*Net Income = 4,730

National Cleaning​ Service's net income is 4,730

6 0
3 years ago
Creative Chronometer, Inc. is planning to launch a new brand of watches for kids. Similar watches are available in the market fo
Ivenika [448]

Answer: $43.75

Explanation:

Given the following :

Markup on total cost = 28%

Projected selling price (price of similar products) = $56

Target cost = projected selling price - desired profit

Desired profit = 28% of target cost

Assume target cost = a

a = 56 - 28%a

a = 56 - 0.28a

a + 0.28a = 56

1.28a = 56

a = 56 / 1.28

a = 43.75

Therefore, target cost 'a' equals $43.75

4 0
3 years ago
The _____ model is a theory of corporate social responsibility that holds that managers are agents of stockowners whose primary
IrinaVladis [17]

The shareholder model refers to a theory of corporate social responsibility that holds that managers are agents of stockowners whose primary goal is to maximize profits. Hence, Option E is the correct statement.

<h3>What is the theory of shareholder model?</h3>

An influential view of the role of commercial enterprise in society that pushes the concept that the simplest duty of managers is to serve withinside the great viable manner the interests of shareholders, the use of the sources of the company to grow the wealth of the latter via way of means of in search of profits is referred to as Shareholder concept.

Hence, The shareholder model refers to a theory of corporate social responsibility that holds that managers are agents of stockowners whose primary goal is to maximize profits. Hence, Option E is the correct statement.

learn more about shareholder model:

brainly.com/question/26253714

#SPJ1

8 0
1 year ago
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