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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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Which of the following is true of credibility? a. Its importance in the post-trust era has decreased. b. People gain credibility
Afina-wow [57]

Answer: C. It is an important basis for effective communication

Explanation:

Credibility is the quality of being able to be trusted. Can people trust the things you say or promise. That is credibility. It is very important in communication because for one to get their ideas across, the people being communicated to must trust and believe what you are saying. For communication to work, utterances must be able to have an impact and if the person communicating does not have credibility, chances are that the people listening will simply ignore what the communicator is saying simply because they don't believe it to be true.

7 0
3 years ago
Read 2 more answers
Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption
Simora [160]

Answer:

a. the purchase of a new home 

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households on durable and non durable goods + Investment spending by businesses + Government Spending + Net Export

The purchase or a new home is considered an investment and thus it is added to investment when calculating GDP .

I hope my answer helps you

4 0
3 years ago
Read 2 more answers
Albuquerque, Inc., acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition date, Marmon repo
mafiozo [28]

Answer:

No Journal entries will be required in either instance. But a note to the financial statement would be appropriate in explaining the declining stake in Marmon Inc.

Explanation:

A. Total share valuation was $1,000,000. ($900,000 + $110,000) which is made up of Albuquerque's holdings and the non controlling interests. This is equivalent holding of 89% by Albuquerque.

*the investment would have been recognized at cost to Albuquerque at $900,000.

But when Marmon sold additional 10,000 shares the interest reduces to 63%

*This wouldn't necessitate any journal entry by Albuquerque as a result of the additional issues of shares but the % stake in Marmon would show to have reduced as a note in its financial records.

And when a further 2,000 was issued Albuquerque stake drops to 61%

* Again this wouldn't necessitate any journal entry by Albuquerque as a result of the additional issues of shares but the % stake in Marmon would show to have reduced as a note in its financial records.

4 0
3 years ago
Based on the information below, what is the firm's optimal capital structure? a. Debt = 40%; Equity = 60%; EPS = $2.95; Stock pr
Ronch [10]

Answer:

The optimal capital structure is 60% debt and 40% equity.

The correct answer is C

Explanation:

Optimal capital structure is a debt-equity mix that maximizes the stock price. Option C is a debt-equity mix that maximizes the stock price of the company.

7 0
3 years ago
Based on the following information, which of these statements is false? Time Period 1st Quarter 2nd Quarter 3rd QuarterBeginning
Arlecino [84]

Answer: 4. direct labour costs for the second quarter will be $192000

Explanation:

Finished Goods opening balance (quarter 2) = 4000

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total units = 4000 + 40000 = 44000

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direct labour cost = 44000/2 = 22000 hours = 22000 x 8 =176000

direct labour costs for quarter 2 = $ 176000. NOT $192000

7 0
3 years ago
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