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enot [183]
3 years ago
11

A company uses the indirect method to prepare the statement of cash flows. How will a gain from the sale of equipment be present

ed on the statement of cash flows?
Business
1 answer:
ycow [4]3 years ago
6 0

Answer:

A gain from the sale of equipment is subtracted from net income to be presented on the statement of cash flows  

Explanation:

The indirect method involves the adjustment of net income to arrive at the amount of cash generated by operating activities.  

It depends on the account if it is added or subtracted to net income.  

A gain from the sale of equipment  will be subtracted from net income

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According to the IS–LM model, if Congress raises taxes but the Fed wants to hold income constant, then the Fed must ______ the m
abruzzese [7]

Answer:

Increase

Explanation:

Population net income consists of the difference between labor income and expenditure. If the government adopts a contractionary fiscal policy, that is, increases taxes, the net income of the population will decrease, since part of the income will be directed to the payment of taxes. For the Fed to compensate for this decline in income, an expansionary monetary policy will have to be adopted, ie the Fed must act to stimulate the population's income. The increase in money supply has the effect of warming the economy in the form of higher demand and higher wages. This is the form of compensation between two different policies, one contractionist and one expansionist.

6 0
3 years ago
Calculate the EBIT for a firm with $4 million total revenues, $3.5 million cost of goods sold, $500,000 depreciation expense, an
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Answer:

$0

Explanation:

Given that,

Total revenues = $4,000,000

Cost of goods sold = $3,500,000

Depreciation expense = $500,000

Interest expense = $120,000

Earnings before interest and taxes (EBIT):

= Total revenues - Cost of goods sold - Depreciation expense

= $4,000,000 - $3,500,000 - $500,000

= $0

Therefore, the EBIT for a firm is $0.

8 0
2 years ago
Damon Co. purchased 100% of the outstanding common stock of Smith Co. in an acquisition by issuing 20,000 shares of its $1 par c
Tamiku [17]

Answer: the correct answer is $70000

Explanation: the fair value of the shares given plus the fair value of the contingent consideration is the total amount paid by the buyer which is (20000 shares * $10 price per share) = $200000+$10000= $210000.

The gain of the transaction is registered as the net fair value of the acquiree that is $350000-$70000= $280000 less the sum paid by the Acquirer that is $280000-$210000= $70000.

The $15000 in direct acquisition costs are registered as period expenses and not relevant for the calculation of the gain of the transaction.

8 0
3 years ago
If supply for a product is high but demand is low, what most likely needs to happen to achieve equilibrium?
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<span>If supply for a product is high but demand is low, the one that most likely needs to happen to achieve equilibrium is: B. The price of the product must go down. High supply of product will create an abundance in the market. By lowering the price of the product, it will attract more consumers for that product (icnreasing its demand) and will eventually lower the product abundance and bring the curve into equilibrium</span>
7 0
3 years ago
Read 2 more answers
The Justice Department refused to approve a merger between office supplier Staples and office supplier Office Depot, a merger th
artcher [175]

Answer:

The correct answer is A) A market share of over 50% from the combined companies

Explanation:

The Clayton Act of 1914 regulates acquisitions and mergers in the United States. This is the legal source that the Justice Deparment would use to approve or disapprove the merger described in the question. It explicitly forbids mergers that result in over 50% of market share, because it consideres a higher percentage than that (a market share from 50% to 99%) to configurate a monopoly.

The merger in the question would result in a 70% market share, way higher than the legal limit, hence it would be denied by the DOJ.

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3 years ago
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