the answer is in the word doc
Answer and Explanation:
The classification are as follows
(a) Payment of interest on notes payable = Operating activities as cash outflow
(b) Exchange of land for patent = Non cash investing activity as it does not involve cash transactions
(c) Sale of building at book value = Investing activities as cash inflow which is represented in a positive sign
(d) Payment of dividends. = Financing activities as cash outflow which is represented in a negative sign
(e) Depreciation = It is added to net income and shown in operating activities
(f) Receipt of dividends on investment in stock = Operating activities as cash inflow
(g) Receipt of interest on notes receivable = Operating activities as cash inflow
(h) Issuance of common stock = Financing activities as cash outflow
(i) Amortization of patent = Operating activities as cash inflow and added to the net income
(j) Issuance of bonds for land = Non cash investing activity as it does not involve cash transactions
Answer: Utilitarian Approach.
Explanation:
Utilitarian Approach is a method of decision making where a decision is made whose outcome positively affects a greater number of individuals.
Caleb is trying to determine a Utilitarian approach that would have a positive outcome for a greater number of people.
Answer :
$1,099.54
Explanation :
As per the data given in the question,
Face value = $1,000
Coupon rate = 8% per year paid semi annual
Time = 6 year × 2 = 12 semiannual period
Coupon payment = 8% × $1,000 × 0.5
= 40
Market interest rate = 6% compounded semiannually is 3% semi annual period
Present value of bond = $40 × (P/A , 3%, 12) + $1,000 × (P/F , 3%, 12)
= $40 × 9.9540 + $1,000 × 0.7013798802
= $398.16 + $701.38
= $1,099.54
We simply applied the above formula
