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Liula [17]
3 years ago
14

Creative Sound Systems sold investments, land, and its own common stock for $39 million, $15.9 million, and $41.8 million, respe

ctively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $21.9 million, $25.9 million, and $12.9 million, respectively. What amount should Creative Sound Systems report as net cash flows from financing activities?
Business
2 answers:
Mnenie [13.5K]3 years ago
8 0

Answer:

Creative Sound Systems should report  $15,9 million as net cash flows from financing activities.

Explanation:

Consider only items relating to financing activities.

Cash flow from  financing activities

Proceeds from Sale of common stock         $41.8 million

Purchased of treasury stock                        ( $25.9 million)

Net Cash flow from Financing Activities       $15,9 million

Sedaia [141]3 years ago
6 0

Answer:

The net cash flows from financing activities is $19.9 million

Explanation:

The net cash flows from financing activities comprises of cash inflows from the issue of common stocks of $41.8 million and the cash outflow expended on purchase of treasury stock of $21.9 million,hence the net cash flows from financing activities is $19.9 million ($41,8 million minus $21.9 million)

Cash inflows and outflows from the sale of land ,equipment ,investments as well as that of patents relate to investing activities of Creative Sound Systems,hence are not included in the calculation of net cash flows from financing activities

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Which of the following is not an assumption associated with the definition of a production function?
larisa86 [58]

Answer: Both inputs and outputs are measured in monetary units.

Explanation: Production function according to Wikipedia is defined as the technological relation between quantities of physical inputs and quantities of output of goods.

7 0
3 years ago
Job A offers you the following financial package: base salary of $35,000, 2 weeks paid vacation, full coverage health insurance
Zarrin [17]

Answer:

The first one offers the best financial advantage

Explanation:

After reading carefully both offers, the first one does not imply any charges on the employee because both, health insurance and vacations, are full covered. On the other hand, when we analyze the second offer, despite the base salary is $5000 higher, the health insurance is deducted from the employee's pay check. Comparing both offers with numbers we have:

Net Salary=Base salary-insurance-vacations\\First Offer= 35000-0-0 = 35000\\SecondOffer= 40000-110*52-0=34280\\

Finally, we can conclude that the first offer has a $720 advantage over the second one. Therefore, it is better to choose it.

3 0
3 years ago
Denna Company's working capital accounts at the beginning of the year follow:
riadik2000 [5.3K]

1. Compute the subsequent amounts and ratios as of the beginning of the year:

a. capital = current assets - current liabilities

working capital = ($50,000 + $30,000 + $200,000 + $210,000 + $10,000) - ($150,000 + $30,000 + $20,000)

= $500,000 - $200,000

= $300,000

b. Current ratio = current assets / current liabilities

current ratio = $500,000 / $200,000

                    = 2.5

c. Acid-test ratio = (current assets - inventory) / current liabilities

acid test ratio = ($500,000 - $210,000) / $200,000

                       = $290,000 / $200,000

                           = 1.45

Financial Ratios :

These are the tools normally utilized in financial management that serve as multi-purpose for other reasons such as obtaining a loan from bank, infusion of additional capital from investors, etc

Acid test ratios :

In finance, the fast ratio, also referred to as the acid-test ratio is a type of liquidity ratio, which measures the power of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately.

Learn more about current ratio :

brainly.com/question/14770071

#SPJ4

4 0
1 year ago
A company makes travel umbrellas. Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas per week is
Lady_Fox [76]

Answer:

Break-even point in units= 93 units

Explanation:

Giving the following information:

Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas per week are $500 for 2000 units.

After doing market research, the company sets the price per umbrella at $11.

Unitary variable cost= 500/2,000= $0.25

To calculate the break-even point in units, we  need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 1,000/ (11 - 0.25)

Break-even point in units= 93 units

3 0
3 years ago
A company has a net sales of 847000 and cost of goods sold of 561500. Its net income is 101200. The company's gross margin and o
SVETLANKA909090 [29]

Answer:

Gross profit margin =  33.7%

Operating expenses = $184,300

Explanation:

The gross margin is the percentage of sales value is earned as gross profit.

Gross profit   =  Sales - cost of goods sold

                           =847,000 -561,500 =$285,500

<em>Gross profit margin = (Sales - cost of goods sold)/sales ×  100</em>

                                =  (847,000 -561,500/847,000)  ×  100

                                 =  33.7%

<em>Operating expenses represent the amount of indirect cost expenditures which cannot be traced to the cost of the goods sold . This include administrative expenses like rent, insurance e.t.c</em>

<em>Operating expense = Gross profit - Net income</em>

                                = (847,000 -561,500)   -  101,200

                                = 184,300

5 0
3 years ago
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