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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.

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Thomas Malthus’s predictions turned out to be wrong due to:
just olya [345]

Answer:

The correct answer is letter "A": technological advances such as those during the Industrial Revolution.

Explanation:

British Anglican clergyman and erudite Thomas Malthus (1766-1834) believed the<em> population would grow geometrically, while food production would grow arithmetically. In such a way scarcity will appear in the long run that will require a decrease in the birth rate</em>. However, Malthus's theory has been proven to be wrong so far due to the introduction of technological advances attributed to the Industrial Revolution by the second half of the 18th century which allowed mass-production of goods.

8 0
2 years ago
If you want to know whether a company had a profit or a loss during a specific period of time, which financial statement would b
riadik2000 [5.3K]

Answer:

The answer would be D. Income Statement!

Explanation:

8 0
3 years ago
You work in the economic-development department of your city. The mayor asks you to conduct an analysis of a plan to increase pa
a_sh-v [17]

Answer:

positive

Explanation:

Positive economics is that branch of economics which deals with the qualification, description and explanation of the economic phenomena. It mainly focuses on the fact based and objective that the statement are precise, clearly measurable and descriptive. It determines and analyzes the behavioral relationships of the cause and its effect on the economic theories.

In the context, the mayor of our city asks me conduct and make a plan to increase the parking fees to 2 dollar per hour. This project is a good example of the positive economics that will tell us whether this increase in the parking meter fee is a good idea or not.

3 0
2 years ago
Sheridan Company manufactures one product. On December 31, 2019, Sheridan adopted the dollar-value LIFO inventory method. The in
disa [49]

Answer:

See attached file

Explanation:

8 0
3 years ago
There are zero coupon bonds outstanding that have a YTM of 5.97 percent and mature in 19 years. The bonds have a par value of $1
Fed [463]

Answer:

market price = $1,104.20

Explanation:

yield to maturity of zero coupon bonds = (face value / market price)¹/ⁿ - 1

  • YTM = 5.97%
  • n = 19 x 2 = 38
  • face value = $10,000

(face value / market price)¹/ⁿ = YTM + 1

face value / market price = (YTM + 1)ⁿ

market price = face value / (YTM + 1)ⁿ

market price = $10,000 / 1.0597³⁸ = $10,000 / 9.0563 = $1,104.20

8 0
2 years ago
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