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AnnyKZ [126]
2 years 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]2 years 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

#SPJ4

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______________ specifies sales revenues and selling distribution and marketing costs.
frez [133]
To answer the question above as the which specifies the sales revenue and selling distribution and marketing costs is letter B, Sales budget. The answer lies in the question itself. Sales revenues,distribution and the marketing cost are all related to the sales budget. Sales budget controls the expenditure or resources related to sales.
3 0
3 years ago
A firm has a debt-to-equity ratio of .5 and a market-to-book ratio of 2. What is the ratio of the book value of debt to the mark
ahrayia [7]

Answer: 0.25

Explanation:

The The debt-to-equity ratio is calculated when the total liabilities of w company is divided a by the shareholder equity while the book-to-market ratio is used to know a company's value by comparing the book value of the company to its market value.

Since the firm has a debt-to-equity ratio of .5 and a market-to-book ratio of 2. The ratio of the book value of debt to the market value of equity will be:

= 0.5/2

= 0.25

5 0
3 years ago
Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling piano
Karolina [17]

Answer:

The wholesale cost for the pianos that Darnell pays the manufacturer - explicit cost  

The salary Darnell could earn if he worked as an accountant - implicit cost

The wages and utility bills that Darnell pays - explicit cost  

The rental income Darnell could receive if he chose to rent out his showroom.-implicit cost

Explanation:

Explicit cost includes the amount expended in running the business.

They include rent , salary and cost of raw materials

Explicit cost is used in determining accounting profit

Implicit cost or opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

Implicit cost is used in determining economic profit

If Darnell didn't use his showroom, he could have rented it out. Renting it out is his next best option that was forgone. Thus, it is an implicit cost

If Darnell didn't start his business, he could have been working as an accountant. The amount he could have earned as an accountant is his implicit cost

7 0
3 years ago
Antivirus Inc. expects its sales next year to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accommo
DiKsa [7]

Answer:

$236,250

Explanation:

The computation of external financing is shown below:-

For computing the external financing first we need to find out the retained earning which is shown below:-

Net income = Sales × Profit margin

= $2,500,000 × 15%

= $375,000

Increase in retained earning = Net income - Dividends

= $375,000 - ($375,000 × 35%)

= $375,000 - $131,250

= $243,750

External financing = Increase in assets - Increase in retained earning

= $480,000 - $243,750

= $236,250

8 0
3 years ago
"At that time, the market price of ABC is $44. If the market rises to $58 and the call is exercised (the put expires out the mon
steposvetlana [31]

Answer:

600 loss

Explanation:

The computation of the gain or loss is shown below:

Since on Jan, there is a put option of 45 at $3 and the market rises to $58

So it losses by 13 points i.e

= 45 - 58

= 13

Now the total premium points collected is of 7 i.e

= 4 + 3

= 7

So, the remaining points left is

= 13 - 7

= 6

So for 6 points, the net loss is $600

7 0
3 years ago
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