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Harrizon [31]
3 years ago
12

A-2-Z Design Services engaged in the following significant activities during the year: The company issued common stock for $250,

000. Management expects to use the proceeds to purchase land next year. A new office building was purchased by issuing a $700,000 long-term note payable to the seller. A-2-Z acquired equipment from one of its suppliers. In exchange, A-2-Z offers to provide design services to its supplier over the next two years. The services are valued at $90,000. Determine the impact of each transaction on cash flows from investing and financing activities in the current year.
Business
1 answer:
Wittaler [7]3 years ago
7 0

Answer:

The company issued common stock for $250,000. Management expects to use the proceeds to purchase land next year.

  • Cash flows from financing activities increased by $250,000. Cash flows from investing activities are not affected during this year (they should decrease next year).

A new office building was purchased by issuing a $700,000 long-term note payable to the seller.

  • Cash flows from financing activities increased by $700,000. Cash flows from investing activities decrease by $700,000.

A-2-Z acquired equipment from one of its suppliers. In exchange, A-2-Z offers to provide design services to its supplier over the next two years. The services are valued at $90,000.

  • Cash flows from financing and investing activities are not affected since this transaction is part of operating activities.
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Select the false statement from the following.
lesantik [10]

Answer: Option C.

General,selling and administrative cost cannot be assigned to a cost object.

Explanation:

General, selling and adminstrative cost is the total of both direct and indirect selling cost, administrative cost and all general cost of the organisation. This cost include all the non production cost that they company incured at a specific time bond i.e cost to sell, cost to deliver product and services, rent, cost to manage the company, marketing expenses, salaries, accounting, bonuses e.t.c.

It is not assigned to a cost object because it is general ,cost of selling, and administrative cost.

7 0
2 years ago
When a business is calculating its operating costs, it must include _____. answer.com?
Svetach [21]
Variable costs.


Hope that helps, Good luck! (:
6 0
3 years ago
Read 2 more answers
In which type of organizational design do middle managers do the primary information processing and communication function, tell
slega [8]

Answer:

The correct answer is letter "C": Hierarchical.

Explanation:

Hierarchical organizations are bureaucratic entities where the decisions are taken by high-rank executives and the main instructions about how the business should be handled come from managers to employees with less command. Messages, as well, have a top-down flow. Hierarchical companies tend to be slow in their processes because the information must flow between different layers of the entity.

8 0
3 years ago
The five stages a buyer passes through in making choices about which products and services to buy is called the postpurchase beh
pychu [463]

Answer:

Purchase Decision Process

Explanation:

The purchase decision process is the one through which the a buyer makes his decision of buying a certain product.

This consumer buying process has five step which they use to make their decision, are following;

  1. Need or Problem Recognition.
  2. Information Search.
  3. Evaluation of Alternatives.
  4. Purchase Decision.
  5. Post-Purchase Evaluation.

I hope the answer is helpful.

Thanks for asking.

8 0
2 years ago
A machine to manufacture fasteners has a setup cost of $1,100 and a unit cost of $0.007 for each fastener manufacture. A new mac
Ludmilka [50]

Answer:

Find the break point. (Round your answer to the nearest whole unit.)

122222 fastener

Explanation:

Cost 1= 1100+0,007x

Cost 2=1650+0,0025x

cost1=cost2

1100+0,007x=1650+0,0025x

0,0045x=650

x=122222 fastener

Cost 1=1100+0,007*122222

Cost 1=1955,55

Cost 2=1650*0,0025*122222

Cost 2=1955,55

4 0
3 years ago
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