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Vedmedyk [2.9K]
3 years ago
8

ABC paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on its common

stock. ABC would report cash outflows from activities, as follows:
A) Operating, $12,000; Financing $6,000.
B) Operating, $0; Financing $18,000.
C) Operating, $18,000; Financing $0.
D) Operating, $2,000; Financing $16,000.
Business
1 answer:
kvasek [131]3 years ago
7 0

Answer: A) Operating, $12,000; Financing $6,000.

Explanation:

Operating Activities deal with the cashflow related to the operations of the business and it's short term obligations. Interest payments on loans are short term and are considered part of normal business operations so the outflow from Operating activities is;

= $2,000 interest on short-term notes payable + $10,000 interest on long-term bonds

= $12,000

Financing Activities relate to cash-flow surrounding the capital of the firm. This includes Equity and long term debt. Dividends have the impact of reducing equity and so will fall under Financing activities.

Dividends = Financing = $6,000

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During the elaboration stage of an organization: Group of answer choices change management is the most important skill that huma
Leno4ka [110]

Answer:

change management is the most important skill that human resource personnel contribute.

Explanation:

Elaboration stage of an organisation is also called the maturity stage. It is characterised by different units being involved in making decisions.

This slows down speed of decision making.

At this stage there is a need for revitalisation and change in order to make the organisation more efficient.

Change management is the process by which employees in an organisation are prepared and supported when there are far reaching improvements to organisation structure.

It ensures a smooth transition by providing needed information and reducing the stress associated with organisational change.

This is a key skill needed by human resource personnel fusing the elaboration stage

7 0
2 years ago
Pierce Corporation exchanged old equipment for new equipment. The original cost of the old equipment was $120,000, and its accum
ololo11 [35]

Answer:

new equipment                   50,000 debit

accumulated depreciation  40,000 debit

loss at disposal:                   30,000 debit

                   old equipment               120,000 credit

--to record trade of equipment--

Explanation:

Let's break the transactions into small parts:

We need to remove the old equipment from accounting along with their accumulated depreciation so:

accumulated depreciation 40,000 debit

                   old equipment               120,000 credit

Then, we debit the new equipment at fair value:

new equipment 50,000 debit

Last, assuming the trade has commercial substance: we recognize the gain or loss on sale:

book value of traded equipment: 80,000

fair value of new equipment:         50,000

loss at disposal:                              30,000

<u>Thus, the journal entry will be as follows:</u>

new equipment                   50,000 debit

accumulated depreciation  40,000 debit

loss at disposal:                   30,000 debit

                   old equipment               120,000 credit

4 0
3 years ago
The developing country of alpha had a rule that none of its factories could be owned by companies from the developed country of
hjlf
<span>When the developing country alpha breaks the rule of factories not being owned by the companies of developed country beta would imply that alpha is in a vulnerable position in its trade. So this means this would be an example of decline in trade and investment barriers.</span>
4 0
3 years ago
If a customer credit score is within 2 points of the minimum of what the business will accept, should the business extend credit
Eduardwww [97]

Answer:

Explanation:

I wouldn't.

The business has drawn a rigid line in the sand. It has to maintain its standard. I might try and make a deal with the customer. "Come up with x% for a down payment."

If the score is high (like over 750), I would likely stretch my standard. 750 is a pretty high score and if you have that kind of a number, you know how to pay things back.

5 0
3 years ago
The Mateo Corporationâs inventory at December 31, 2018, was $325,000 based on a physical count priced at cost, and before any ne
Oliga [24]

Answer:

The correct answer to the following question is $405,000 .

Explanation:

Given information -

Mateo corporations inventory on 31, December 2018 - $325,000

Merchandise costing , shipped from a vendor on December 30, but was received on January 5, 2019 - $30,000

Merchandise costing, destination from a vendor on December 28, 2018, but was received on January 3, 2019 - $22,000 .

Merchandise costing, shipped to a customer on December 28, arrived at customers location on January 6, 2019 - $38,000

Merchandise costing, held on consignment by Traynor company - $12,000

Mateo corporations inventory as on 31 December 2018 -

$325,000 + $30,000 + $38,000 + $12,000

= $405,000

4 0
3 years ago
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