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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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BRAINLIEST
Neko [114]
Purchase of services mean a person did a job for him, not that he bought a product. The answer cannot include C, D, E since those all are purchasing of products.
Therefore the answer is the first one, A B F. 
6 0
3 years ago
The debt of state and local governments is mostly? owed to citizens of other nations. external. worthless internal.
topjm [15]

The debt of state and local government is mostly an external debt.

The financial obligations of the government sector are known as a nation’s gross government debt, often known as public debt or sovereign debt Government borrowing over time is mostly due to prior shortfalls in the budget. When a government’s expenses exceed its receipts, a deficit results. Both domestic and foreign residents may be subject to government debt.

Public debt management is the process of creating and implementing a strategy for managing the government's debt to raise the required amount of funding, and meet other goals of government.

Global government debt in 2020 was estimated to be worth $87.4 US trillion, The percentage of government debt in total debt (which includes corporate and family debt) reached its highest level since the 1960s, close to 40%.

To learn more about public debt , refer this link.

brainly.com/question/2902349

#SPJ4

3 0
10 months ago
Elliott Credit Corp. wants to earn an effective annual return (EAR or EAIR) on its consumer loans of 17.1 percent per year. The
Yuri [45]

15.79 % is the rate that bank is requred to give to potential borrowers

<u>Explanation:</u>

\mathrm{EAR}=(1+\mathrm{APR} / \mathrm{m})^{\mathrm{m}}-1

A P R=m\left[(1+E A R)^{1 / m}-1\right]

\mathrm{APR}=365\left[(1+.171)^{1 / 365}-1\right]

A P R=365\left[(1.171)^{0.00273972602}-1\right]

\mathrm{APR}=365 *[1.00043258-1]

A P R=365 * 0.00043258, APR = 0.1578917  

Or 15.79% (it is rounded off )

<u>Where: </u>

EAR = effective annual rate

APR = Annual percentage rate

M = number of compounding

Therefore, the interest of rate that the bank is required by law in order to report to all the potential borrowers is 15.97%

4 0
3 years ago
Majesty Productions accepted a $7,200, 120-day, 6% note from Swartz Studio on March 1. On the date the note matures, Swartz is u
weeeeeb [17]

Answer:

D. Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200.

Explanation:

Interest: $7,200 × .06 × 120/360 = $144

The entry that Majesty should record on the maturity date for this dishonored note is :

Debit Accounts Receivable $7,344

Credit Interest Revenue $144

Credit Notes Receivable $7,200.

5 0
3 years ago
Read 2 more answers
A sporting goods store is having a large sale event. Baseball bats are marked down by 42%, and hockey sticks are marked down by
Rina8888 [55]

The correct statement is   "Hockey sticks had their prices reduced by $0. 41 more than baseball bats."

Mark down refers to a reduction in price of an item or good. The reduction is generally done as a percentage of price of the item. The purpose behind mark down is to increase sales volume.

<h3>Calculation of reduction in price:</h3>

Given:

Markdown in price of baseball bats is 42%

Cost of baseball bats after markdown is $21.46

Markdown in price of hockey sticks is 29%

Cost of hockey sticks after markdown is $39.05

For calculating the amount of markdown, we need to find the original cost of baseball bats and hockey sticks.

Calculation of cost of baseball bats before markdown:

\begin{aligned} \rm Cost \:before\:markdown &= \dfrac{\rm Cost \:after \:Markdown}{100- \rm Markdown\%} \\&#10;\\&#10;&=\dfrac{21.46}{100-42\%}\\&#10;\\&#10;&=\dfrac{21.46}{58\%}\\&#10;\\&#10;&=\$37\end

Hence the markdown in price of baseball bats is \$37-\$21.46=\$15.54

Similarly, for hockey sticks:

\begin{aligned} \rm Cost \:before\:markdown &= \dfrac{\rm Cost \:after \:Markdown}{100- \rm Markdown\%} \\\\&=\dfrac{39.05}{100-29\%}\\\\&=\dfrac{39.05}{71\%}\\\\&=\$55\end

Markdown in the cost of hockey sticks is \$55-\$39.05=\$15.95.

Difference in markdown is:

\$15.95-\$15.54=\$0.41

Therefore it can be concluded that markdown in cost of hockey sticks is more as compared to baseball bats by $0.41

Hence the correct statement is "Hockey sticks had their prices reduced by $0. 41 more than baseball bats."

Learn more about markdown here:

brainly.com/question/3099549

7 0
2 years ago
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