1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nuetrik [128]
3 years ago
14

Red Hot Chili Peppers Co. had the following activity in its most recent year of operations.Classify the items as (1) operating—a

dd to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method.
a. Purchase of Equipment
b. Redemption of bonds payable
c.Sale of building
d. Depreciation
e. Exchange of equipment for furniture
f. Issuance of capital stock
g. Amortization of intangible assets
h. Purchase of treasury stock
i. Issuance of bonds for land
Business
1 answer:
lora16 [44]3 years ago
7 0

Answer:

a. Purchase of Equipment  - (3) investing

b. Redemption of bonds payable  - (4) financing

c. Sale of building  - (3) investing

d. Depreciation  - (1) operating—add to net income;

e. Exchange of equipment for furniture  - (5) significant noncash investing and financing activities

f. Issuance of capital stock  - (4) financing

g. Amortization of intangible assets  - (1) operating—add to net income

h. Purchase of treasury stock  - (4) financing

i. Issuance of bonds for land - (5) significant noncash investing and financing activities

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

You might be interested in
Small Businesses in America
PSYCHO15rus [73]
Small scale business society can nurture entrepreneurial skills in children
7 0
3 years ago
In a perpetual average cost system: a. The average is determined by dividing the total number of units sold by the cost of units
Sedaia [141]

In a perpetual average cost system a new weighted-average unit cost is calculated each time additional units are purchased.

Option B is correct

Explanation:

"Average" represents the mean expense of production items from the sale time below the perpetual method. This marginal cost is compounded by the numbers of distribution units, deducted from the stock in the possession and debited to the Expense of Items Sold balance.

Divide the prices of goods available on the market by the amount of available on the market to be using the median weighted practice, which results in the total average cost of units. The cost of the product available on the market is the amount of the original production and net sales in this estimate.

8 0
3 years ago
Health Maintenance Organizations (HMOs) are MOST LIKELY associated with which of these types of insurance? A) life insurance B)
sleet_krkn [62]

Answer:

.

Explanation:

8 0
3 years ago
This table shows the CTSOs that four high school students are involved in: A 2-column table with 4 rows. Column 1 is labeled Stu
asambeis [7]

Answer: ELYSE. TSA. AFP. <—- the one that has that in the first Column

Explanation:

TSA is very similar to AFP

4 0
3 years ago
Read 2 more answers
The decision to innovate
sukhopar [10]

Answer:

D hope that helps you out

7 0
3 years ago
Other questions:
  • Suppose the U.S offered a tax credit for firms that built new factories in the U.S. Then __________a The demand for loanable fun
    10·1 answer
  • Under _____ reserve banking, banks hold only a small portion of deposits in reserve, and they lend the rest
    11·1 answer
  • Both managers and workers cite low managerial ethics as a major cause of american
    5·1 answer
  • Say you take out a loan with a principal of $44,500. The interest rate is 13.11%, compounded monthly. If you make consistent mon
    7·2 answers
  • Geithner LLC patented a process it developed in the current year. The patent is expected to create benefits for Geithner over a
    9·1 answer
  • A stock has an expected return of 15.1 percent, the risk-free rate is 5.95 percent, and the market risk premium is 7.8 percent.
    8·1 answer
  • Murphy Company, a cash-basis, calendar-year taxpayer, received a call on December 28, year 1, from a client stating that a check
    13·1 answer
  • Nikolas Industries has a cash balance of $20,000 on July 1, 20x8. The company is in the process of preparing the cash budget for
    14·1 answer
  • State five methods of interview​
    13·2 answers
  • Inadvertently, morris leaves his backpack at nuway launderers when he stops to pick up his clothes. the backpack is:____.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!