Answer:
The correct answer is option (b) $831,000 net cash inflow.
Explanation:
Solution
Recall that:
Company miracle bought stock treasury with a cost of = $15,000
Dividends paid = $20,000
Bond issued =$ 866,000
Now,
The cash flow from financing activities is calculated as follows:
Bonds payable -Purchased treasury stock - Dividend paid
$866,000 - $15,000-$20,000
= $831,000
Therefore, The net cash flow is $831,000
Answer:
The value of the firm is $1,485,000
Explanation:
For computing the value of the firm, first, we have to compute the price per share which equals to
= Borrowed amount ÷ repurchase shares
= $220,000 ÷ 20,000
= $11 per share
Now, the value of the firm should be computed. The formula is used which is shown below:
= Price per share × Number of outstanding shares
= $11 × 135,000 shares
= $1,485,000
Hence, the value of the firm is $1,485,000
Based on the salary that Joy earns and her deductions, the total annual deductions are:
- Medical insurance - $5,616
- Dental insurance - $576
- 401 (K) - $2,292.90
- Additional withholding - $1,608
<h3>What are Joy's deductions?</h3><h3 />
Joy is paid semimonthly which means twice a month. In a year she is paid:
= 12 x 2
= 24 times
The annual medical insurance is:
= 238 x 24
= $5,616
The annual dental is:
= 24 x 24
= $576
The 401(k) is:
= 6% x 38,215
= $2,292.90
The additional withholding is:
= 134 x 12
= $1,608
Find out more on salary deductions at brainly.com/question/2150780.
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Answer:
b. Revised to reflect the use of the new principle.
Explanation:
- As most of the changes in the account principles need to be disclosed that justifies the changes in the first set of the financial statements. That the change is made and all changes using this retrospective approach needs a prior adjustment and all chances are accounted retrospectively. Thus is revised to make use of the new principle.