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3 years ago

"when you buy a piece of equipment for a company, what is the impact on the three financial statements?"

Business

1 answer:

Dvinal [7]3 years ago

5 0

There are three main financial statements that can be affected by buying a piece of equipment for a company.

They are: (1) balance sheets; (2) income statements; and (3) cash flow statements

Balance sheets show what a company owns and what it owes at a fixed point in time so buying a piece of equipment will show an increase in the company’s assets and decrease in cash Income statements which shows how much money a company made and spent over a period of time will report an increase in the expenses resulting to a lower net income.

Cash flow statements which show a decrease in net cash due to buying of the equipment.

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Assume that Plavor Brands, Inc. has 10,000,000 common shares outstanding that have a par value of $2 per share. The stock is cur

Kay [80]

Answer:

The multiple choices:

Earnings per share will remain the same since a stock dividend does not create an expense.

Earnings per share will increase because the dividend increases the value of the company.

Earnings per share will decrease because the number of shares outstanding will go up.

The impact cannot be determined without additional information on the new price per share.

The correct option is earnings per share will decrease because the number of shares outstanding will go up.

Explanation:

Initial EPS=earnings attributable to common stock/average weighted number of common stock

earnings attributable to common stock is $25,000,000

average weighted number of common stock is 10,000,000

Initial EPS=$25,000,000/10,000,000

=$2.5

EPS with 10% stock dividend :

average weighted number of common stock=10,000,000*(1+10%)

average weighted number of common stock=10,000,000*(1+0.1)

average weighted number of common stock=11,00,000

EPS with 10% stock dividend=$25,000,000/11,000,000

=$2.27

EPS reduced from $2.5 to $2.27 due to 10% stock dividend as there are more shares than previously.

8 0

3 years ago

The element of the four c's is associated with the promotion element of th marketing mix

zvonat [6]

Answer:

Communication is the aspect that aligns with promotion when relating the 4 C's to the 4 p’s of marketing. When you promote a product you are using commication to get the product promoted to the consumer.

Explanation:

6 0

3 years ago

Regina finds a new car costing $25,000 and a used car costing $17,000. Which car will have higher insurance premiums and why?

GaryK [48]

The used car will have higher insurance premiums because there is a higher chance that it will malfunction and that they will have to pay for your expenses. A new car is cheaper when it comes to premiums because it is expected to last and the insurance companies are safer in this regard.

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3 years ago

At Taylor Activewear, orders have significantly exceeded projections, and Macon, the operations director, has decided to hire fo

Afina-wow [57]

Answer: variable budget

Explanation: In simple words, variable budget refers to the budget statement which shows how much different costs would vary if the level of activity as per standards set increases or decreases.

These are also called flexible budget and are made on the basis of current level of output. These budgets provides flexibility to the management with respect to both best case and worst case scenarios.

From the above we can conclude that the correct answer is variable budget.

7 0

3 years ago

Activity based costing _____________

Ilia_Sergeevich [38]

Answer:

1. groups costs into meaningful buckets that are then distributed based on the activity or product they support.

Explanation:

Activity based costing basically categorizes various overheads into different activities, that leads to charge of overheads based on different activities.

In this manner overheads that shall be charged on some standard products based on the activities involved is charged accordingly, and not based on standard overhead allocation rate.

Basically the overheads are divided into various activities and then distributed to each product based on the volume of activity in the manufacturing process of such activity.

7 0

3 years ago