Answer:
Explanation:
1. Issued common stock to investors in exchange for cash received from inventors - Increase in assets (cash) and an increase in equity (Capital)
2. Paid monthly rent - The decrease in equity and decrease in assets (cash)
3. Received cash from customers when service was rendered - Increase in assets (cash) and an increase in equity
4. Billed customers for services performed - Increase in assets (Accounts Receivable) and an increase in equity
5. Paid dividend to stockholders - The decrease in equity and decrease in assets (cash)
6.Incurred advertising expense on account - Decrease in equity and an increase in liability (Accounts Payable)
7.Received cash from customers billed in - Increase in the asset (cash) and decrease in the asset (Accounts Receivable)
8.Purchased additional equipment for cash - Increase in the asset (Equipment) and decrease in an asset (cash)
9.Purchased equipment on account - Increase in the asset (equipment) and an increase in liabilities (Accounts payable)
Answer:
a) cash flow from operating activities
net income $650,000
adjustments:
depreciation expense $96,000
accounts payable $38,000
accounts receivable -$22,800
inventory -$57,000
prepaid insurance -$8,400
net cash flow from operating activities $695,800
b) cash flow from investing activities
Sale of long term investments $57,500
Purchase of long term assets -$610,000
Long term assets exchanged for common stocks $113,000
net cash flow from investing activities -$439,500
Answer:
Times interest earned (TIE) = 7.4 times
Explanation:
The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,
Times Interest Earned (TIE) = EBIT / Total Interest expense
Where,
- EBIT is the earnings of the company before interest and tax
To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:
EBIT = Net income + tax + interest expense
EBIT = 240000 + 80000 + 50000
EBIT = $370000
Times interest earned (TIE) = 370000 / 50000
Times interest earned (TIE) = 7.4 times
The reason that interest rate risk is greater for <u>long</u>-term bonds than for <u>short</u>-term bonds is that the change in rates has a greater effect on the present value of the <u>Par Value</u> than on the present value of the <u>Coupon</u>.
<h3>What is a Long-term Bond?</h3>
Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.
They usually pay a higher interest rate than the short-term bonds which span between a year and three years.
See the link below for more about long-term bonds:
brainly.com/question/3521722
Answer:
The purpose of this advertising campaign was most likely to <u>get customers to try the new product</u><u>.</u>
Explanation:
Since Wink soda was a new product of Canada Dry, <u>it needed a catchy slogan to create awareness and invite customers to try out the product.</u>
The slogan "Join the cola dropouts", was one that told customers that <u>Wink soda was something different from cola, and should be given a try.</u>
