Answer:
Warranty liability $2,128
Explanation:
680 phones sold x 5% x $76 per repaired phone = $2,584 total warranty liability
6 phones were repaired during the year x $76 = $456
remaining warranty liability = total estimated liability - money spent repairing phones during the year = $2,584 - $456 = $2,128
total outstanding warranty liability = $2,128
Since phone warranties last less than a year, the full amount should be recorded under current liabilities.
This is an example of mass selling through publicity.
The show may not have been that much popular before Tom Bowman wanted it gone, however, after he asked for its removal from the air, people were interested to see why that is so, which is why it gained many new followers instead of losing its old ones.
The banking panic of 1907 and the resulting cash shortage led to the formation of the Comptroller of the Currency.
<u>Explanation:</u>
The Office of the Comptroller of the Currency (OCC), established by National Currency Act of 1863 serves to supervise, regulate and charter all national banks, thrift institutions and all the other federally licensed branches in US. The current Comptroller of the Currency is Joseph Otting.
The banking panic of 1907 has been a main motivation in creating the 3rd central banking system in 1907–1913. This was initiated by failed speculation that led to bankruptcy of 2 brokerage firms.
The public started to panic that the trust and banking industries were experiencing liquidity crunches and had the currencies only to meet short-term or immediate obligations. This caused bank runs and set off the financial panic of 1907 nationwide and it lasted for months.
Answer:
a. Net income - Operating
b. Paid cash dividends - Financing
c. Issued common stock - Financing
d. Issued bonds - Financing
e. Redeemed bonds - Financing
f. Sold long-term investments - Investing
g. Purchased treasury stock - Financing
h. Sold equipment - Investing
i. Issued preferred stock - Financing
j. Purchased buildings - Investing
k. Purchased patents - Investing
Explanation
The statement of cash flows is basically made up of three sections: operating, financing and investing activity.
Statement of cash flows, using indirect method is simply a statement that records the cash inflows and outflows after adjusting for non-cash items.
- Operating activities comprise the adjustment of non-cash items that were already added or subtracted from the net income in preparing the income statement in line with accrual accounting. Then, it records the movement in current assets and liabilities.
- The Financing section comprises those activities that are geared towards improving the capital structure of the company like issuance of stocks, cash dividend payment, etc.
- Finally, the Investing activities are those activities involving purchase of equipment or any other assets that would be used in the course of the business to generate revenue.
I would say that the stock market deals with selling and buying shares according to the confidence of the shareholders in say the price of metals and the quality of the companies' assets, whereas for currency exchange, it is based on the exchange rates between currencies and converting one to the other.
