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ra1l [238]
3 years ago
7

Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions

, considered individually, on cash flows: Retired $200,000 of bonds, on which there was $2,000 of unamortized discount, for $208,000. Sold 12,000 shares of $20 par common stock for $39 per share. Sold equipment with a book value of $47,500 for $68,400. Purchased land for $328,000 cash. Purchased a building by paying $51,000 cash and issuing a $90,000 mortgage note payable. Sold a new issue of $270,000 of bonds at 98. Purchased 4,000 shares of $30 par common stock as treasury stock at $60 per share. Paid dividends of $1.90 per share. There were 19,000 shares issued and 3,000 shares of treasury stock.
Business
1 answer:
xeze [42]3 years ago
7 0

Answer:

The classification is shown below:

Explanation:

As we already know that

Cash receipts is the amount which is received by the company in cash that results in increment in cash balance. It is a cash inflow

While the cash payment is the amount which has to be paid by the company in cash that results in decrements in cash balance. It is a cash outflow

So based on this, the categorization is presented below:

Retired $200,000 of bonds, on which there was $2,000 of unamortized discount, for $208,000. = Cash payment for $208,000

Sold 12,000 shares of $20 par common stock for $39 per share.  = 12,000 shares × $39 = $468,000 cash receipt

Sold equipment with a book value of $47,500 for $68,400.  = Cash receipt for $68,400

Purchased land for $328,000 cash. = Cash payment for $328,000

Purchased a building by paying $51,000 cash and issuing a $90,000 mortgage note payable. = Cash payment for $51,000

Sold a new issue of $270,000 of bonds at 98. = Cash receipts for $264,600 ($270,000 × 0.98)

Purchased 4,000 shares of $30 par common stock as treasury stock at $60 per share. = Cash payment for $240,000 (4,000 shares × $60)

Paid dividends of $1.90 per share There were 19,000 shares issued and 3,000 shares of treasury stock.  = Cash payment for $304,00 (19,000 shares - 3,000 shares) × $1.90

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The following information is available for Marks Company at December 31, 2019:
Arada [10]

Answer:

cost of goods manufactured= = $222,800

Explanation:

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

beginning WIP = 6,000

Direct material used= 10,300 + 90,000 - 6,500= 93,800

Direct labor= 60,000

Manufacturing overhead= 75,000

Ending WIP= (12,000)

cost of goods manufactured= = $222,800

6 0
3 years ago
Which should Jill do to increase her credit score?
marshall27 [118]

Answer:

Pay off her credit card debt.

Explanation:

A credit score is indicative of one's history of loan repayments.  A high credit score communicates that the borrower has been timely in paying their loans.  It tells that an individual has been responsible when using credit facilities.

A low credit score says that the customer is often late in repaying their loans. If Jill wants to improve his credit score, he should clear all his outstanding debts.

6 0
2 years ago
Read 2 more answers
Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borr
Kay [80]

Answer:

The answer is: C) Investment spending by businesses varies inversely with the interest rate.

Explanation:

This statement is true all the time. When a company evaluates the costs and benefits of an investment, interest rate plays a fundamental part in those calculations. The two basic reasons for that are:

  1. The higher the interest rate a company (or any individual) has to pay for a loan, the harder it is for the company to repay the loan.
  2. The interest rate a bank charges is usually correlated to the opportunity cost of an investment. The higher the interest rates banks charge, the higher the internal rate of return (which is used to calculate the Net Present Value of an investment) will be. This is because banks don´t print money, they take in deposits and then they loan the money the someone else. So if the interest rate the bank charges is high, usually the interest rates the bank pays for the deposits is also high. Instead of investing, a company might just put their money on the bank and earn a better return rate.  
7 0
2 years ago
Arthur, an Air Force major, received a permanent change of station transfer from Alabama to Spain. His spouse did not accompany
daser333 [38]

Answer:

$0

Explanation:

Generally speaking, military housing allowances, subsistence allowances, overseas housing allowances and family separation allowances are not included in gross income. They are not taxed by the federal or state governments. Military personnel are not relocated based on the country's national security needs, not their own personal needs.

If the moving expenses exceed the amount given to them by the Air Force, the extra amount is generally tax deductible.

6 0
3 years ago
Stock prices tend to ignore unexpected changes in dividend payments. Companies prefer to cut dividend payments rather than borro
Shkiper50 [21]

Answer: B. Maintaining a steady dividend is a key goal of most dividend-paying companies.

Explanation:

Companies that pay dividends prefer in general, to maintain a steady dividend overtime. This does not necessarily mean that they will pay the same amount of dividend but rather that they will pay out dividends as within a certain percentage range of the net income.

Companies do not prefer to cut dividends so as not to send the wrong message so A is wrong. Share repurchases reduces agency costs so C is wrong. Short term fluctuations in cash flow are not the key favor in determining dividend policy as the company might still pay out the same regardless so this is wrong as well. Option B is the best answer.

7 0
3 years ago
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