Answer:
shareholders A and B will each have 30 votes (each invested $30,000)
shareholders C and D will each have 20 votes (each invested $20,000)
shareholder E will have 10 votes (only invested $10,000)
total number of possible votes = (30 x 2) + (20 x 2) + 10 = 110 votes
any decision must be approved by more than 50% of the votes, but since the votes are bundled in tens, 60 votes are needed.
Stockholders number of
<u>A B C D E </u> <u> positive votes</u> <u> win</u>
yes no no no no 30 no
yes yes no no no 60 yes
yes no yes no no 50 no
yes no no yes no 50 no
yes no no no yes 40 no
yes yes yes no no 80 yes
yes yes no yes no 80 yes
yes yes no no yes 70 yes
yes yes yes yes no 100 yes
yes yes yes no yes 90 yes
yes yes yes yes yes 110 yes
no yes no no no 30 no
no yes yes no no 50 no
no yes no yes no 50 no
no yes no no yes 40 no
no yes yes yes no 70 yes
no yes yes no yes 60 yes
no yes no yes yes 60 yes
no yes yes yes yes 80 yes
all other combinations result in negative outcome (less than 60)
Answer:
(a) Cash received from customers = Cash flow from operating activities as this is the regular transaction of every business.
(b) Cash paid to stockholders = Cash flow from financing activities as this is the payment for any investment made by shareholders, in return when the shares are matured or treasury stock is purchased then, this is financing activity.
(c) Cash received from issuing new common stock = Cash flow from financing activity, as this will generate funds for the company, therefore it is a financing activity.
(d) Cash paid to suppliers = Cash flow from operating activities, this a regular payment in exchange of goods purchased, cash outflow.
(e) Cash paid to purchase a new office building = Cash outflow from investing activity, as this is an investment capital in nature, and will provide in return capital base or other income in form of rent.
Answer: Increase in assets and increase in liabilities.
Explanation: As we know that accounting equation is denoted as :-
Assets = capital + liabilities
where,
. Assets are the resources owned by the firm for the generation of revenue.
. Capital means the funds procured by company in the form of contribution by the owners or in the form of debt.
. Liabilities are the obligations on the company.
.
Purchase of office equipment on credit will result in increase in assets as office equipment is used for administration purposes and as it is purchased on credit it will also increase its liabilities.
In an experiment, raising his hand would be the dependent variable.