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fiasKO [112]
3 years ago
11

Blair Madison Co. issues $2.8 million of new stock and pays $560,000 in cash dividends during the year. In addition, the company

took advantage of falling interest rates to borrow $4.2 million in a new bond issue and paid off existing bonds with a face value of $5.6 million. The company bought 1,400 of another company's $1,000 bonds at a $280,000 premium. The net cash flow provided by financing activities is:
Business
1 answer:
frutty [35]3 years ago
4 0

Answer:

The net cash flow provided by financing activities is: $840,000

Explanation:

Prepare the Cash flow from Financing Activities Section as follows :

Cash flow from Financing Activities

Proceeds from Issue of Shares                      $2,800,000

Dividends Paid                                                  ($560,000)

New Bond Issue                                              $4,200,000

Bond Paid off                                                  ($5,600,000)

Net Cash flow from Financing Activities           $840,000

<em>Note that the Bonds bought of another company constitutes investment activities of Blair Madison Co. thus excluded from Cash Flow from Financing Activities Calculation.</em>

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3 years ago
A surplus exists in a market if​
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Answer:

A surplus exists in a market if​ the supply happens to be excessive

Explanation:

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Identify the correct sentence.
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Analyzing Financial Statement Effects of Bond Redemption Dechow, Inc., issued $750,000 of 8%, 15-year bonds at 96 on July 1, 200
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Answer:

Dechow, Inc.

Journal Entries:

July 1, 2009: DebitCash $720,000

Debit Bonds Discount $30,000

Credit 8% Bonds Payable $750,000

To record the issuance of a 15-year bonds at 96 with semiannual interest payments.

July 1, 2016 Debit Bonds Payable $750,000

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Credit Unamortized discount $20,442

Credit Cash $757,500

To record the retirement of the bonds at 101.

Explanation:

a) Data and Analysis:

July 1, 2009: Cash $720,000 Bonds Discount $30,000 8% Bonds Payable $750,000 15-year bonds at 96 on July 1, 2009 with semiannual interest payments.

July 1, 2016 Bonds Payable $750,000 Bonds Retirement Loss $27,942 Unamortized discount $20,442 Cash $757,500 retired the bonds at 101.

Unamortized discount:

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Amortized bonds discount        (9,558)

Unamortized bonds discount $20,442

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3 years ago
Wanda’s will power is 25% in convincing people to vote for her. She needs 50% of the vote to win. Assuming everyone votes, in or
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Answer:

34 % of the people must already planning to vote for Wanda

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Let there are 100 people in the town

It is given that Wanda will convince 25 % of people vote for her

Now let there are x people who are planning to vote Wanda

Then 100-x people are not planning to vote Wanda

She have to convince 0.25 ( 100-x) people to get 50% of the vote and to win

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8 0
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