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givi [52]
3 years ago
9

Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2021, the company begins operations by

issuing stock for $11,000 and obtaining a loan from a local bank for $16,000. By the end of 2021, the company provides will preparation services of $23,000 cash and pays employee salaries of $14,000. In addition, Smith pays $1,100 in cash dividends to stockholders on December 31, 2021.
Required:

Determine the amount of financing cash flows Smith would report in 2012.
Business
2 answers:
slavikrds [6]3 years ago
7 0

Answer:

$25,900

Explanation:

The cash inflow and outflow occured due to borrowing or repaying

In this question the cash flow relates to the finances obtained by the company as follows;

Operational cost + Loan obtained - Dividend

$11,000 + $16,000 - $1,100 = $25,900

borishaifa [10]3 years ago
6 0

Answer:

Financing cash flows will be as follows;

Explanation:

Stocks                        $11,000

Loan                          $16,000

Dividends paid            ($1,100)      

Cashflows from financing activities   $25,900  

The salaries paid and service revenues received are shown in operating activities, therefore they are not shown in financing activities of cash flow statement.

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4 0
3 years ago
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Cost pressure from international competitors pushes companies toward greater scale and efficiency. But some products must also m
SSSSS [86.1K]

Answer:

Transnational strategy

Explanation:

There is a difference in global approach and Transnational approach.

In global approach, one product is sold and promoted the same way across all channels and location. While in the case of Transnational strategy, it is more like a customized or personalized approach to sell products to a particular targeted audience.

Hope this helps.

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8 0
3 years ago
Suppose monetary neutrality holds and velocity is constant. A 5 percent increase in the money supply increases the price level b
Alex73 [517]

Answer:  Increases the price level by 5 percent

Explanation:

Monetary Neutrality is a theory in Economics that posits that when there is a change in money supply in an economy, the only variables affected are the nominal ones like price level and wages and Real variables like GDP and employment are not affected.

It holds that when there is an increase in money supply, there is an equivalent increase in Price level as well because the value of money has fallen by the rate of the monetary increase. The Price level rising at the same rate is to compensate.

A 5 percent increase in the money supply will therefore increase the price level by 5 percent.

4 0
3 years ago
Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable
Rudik [331]

Answer: $92,880

Explanation:

The Gross Profit can be calculated by simply removing the cost from the sales amount.

It is stated that the additional processing will yield 10,000 bags of Premium Green and 3,600 bags of Green Deluxe, which can be sold for $7.55 and $5.55 per bag.

Sales figure is therefore,

= (10,000 * 7.55) + (3,600 * 5.55)

= 75,500 + 19,980

= $95,480

Subtracting the cost to get,

= 95,480 - 2,600

= $92,880

The total gross profit would is $92,880.

7 0
2 years ago
Consider the following year-end information for a company: Cost of goods sold $ 420,000 Sales revenue 800,000 Non Operating expe
Bad White [126]

Answer:

$210,000.

Explanation:

Given:

Cost of goods sold = $420,000

Sales revenue = $800,000

Operating expenses = $170,000

Question asked:

What amount will the company report for operating income ?

Solution:

As we know, Operating Income = Gross Profit- Operating Expenses

First of all we will find gross profit,

Gross Profit = Net Sales – Cost of goods sold

                    = $800,000 -  $420,000

                    = $380,000

Now, Operating Income = Gross Profit- Operating Expenses

                                        = $380,000 -  $170,000

                                        = $210,000

Therefore, consider the following year-end information for a company, its Operating Income is  $210,000.

4 0
3 years ago
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