Answer:
Net cash provided by financing activities $315,000
Explanation:
The computation of the net cash provided or used by financing activities is shown below:
Issuance of common stock $275,000
Issuance of bonds payable $469,000
Less: Payment of dividends $380,000
Less: Purchase of treasury stock $49,000
Net cash provided by financing activities $315,000
Answer:
The journal entry to record the lease would be:
Debit Credit
Asset $3,000,000
Lease Payable $3,000,000
Debit Credit
Lease Payable $195,774
Cash $195,774
Explanation:
To prepare the journal entry to record the lease we would have to calculate the present value of lease payments as follows:
present value of lease payments=$195,774*15.32380=$3,000.000
Therefore, the journal entry to record the lease would be:
Debit Credit
Asset $3,000,000
Lease Payable $3,000,000
Debit Credit
Lease Payable $195,774
Cash $195,774
Answer: e. To drive up market share
Explanation:
Differentiation strategies involve adding features to a good to make it stand out from the Competition. Since these features are usually beneficial, the value of the good goes up and the company selling them can charge more. This is the main way things are done in Monopolistic markets.
However, sometimes it is best to charge the same price the Competition is charging even though you have a better product. This way the company is able to capture Market Share because the consumers will believe they are getting a better value for their money. For instance, if a company was selling Toyotas at $2,000 and it's competitor was selling the same Toyota but with 2 extra tires for the same $2,000 who would you use? The Competitor most likely.
This is why a firm might want to keep prices in line with competitors.
B.
It says Liza is risk tolerant, therefore it would make sense that she would hold on to these stocks as risk tolerant people often hold onto stocks in the long term.
Answer:
A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.Market economies range from minimally regulated free-market and laissez-faire systems where state activity is restricted to providing public goods and services and safeguarding private ownership, to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare. State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning—which guides yet does not substitute the market for economic planning—a form sometimes referred to as a mixed economy.
