Answer:
The agreement among the Jane and bank personally is the Guaranty
Explanation:
As Jane want to take a loan of $50 from bank in order to purchase a building but bank is worried regarding the financial health of the company so in order to grant the loan or mortgage, both bank and Jane entered into an agreement which states that the Jane would be personally liable for the payment if company defaults. So, the agreement in which they agreed is the guaranty given by Jane to bank.
Answer:
Original cost of the stock = $23.16
Explanation:
Original cost of the stock = Selling price of stock / ( 1 + r )^n
Original cost of the stock = $50 / (1+8%)^10
Original cost of the stock = $50 / (1.08)^10
Original cost of the stock = $23.16
Answer:
C-both the direct method and the indirect method.
Explanation:
When you want to calculate net cash flows from operating activities, you only consider cash inflows and outflows. This means that changes in accounts receivable, inventories and other prepaid expenses must be adjusted, as well as accounts payable and any other non-cash expenses like depreciation or amortizations.
Answer:
Cash flow from operations = $300,000
Explanation:
Using the indirect method we must adjust income for the non-cash transaction.
Net income = $250,000
Depreciation = $30,000
Decrease of $20,000 in accounts receivable
Increase in bonds payable of $50,000.
Cash flow from operations = Net income + Depreciation + Decrease in accounts receivable =
Cash flow from operations = $250,000 + $30,000 + $20,000 = $300,000
