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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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Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for th
julsineya [31]

Answer:

$274,400

Explanation:

Data provided in the question:

Annual income of Tim and Tammy = $56,000

Net worth of Tim and Tammy = $150,000

Now,

Using the easy method

Step 1;

Multiply the annual gross income by 70%

⇒ $56,000 × 0.70

⇒ $39,200

Step 2 :

Multiply the above result with 7

⇒ $39,200 × 7

⇒ $274,400

therefore,

we get the amount of life insurance as $274,400

8 0
3 years ago
Considering contributing $1,000 to their church. This contribution will bring their total itemized deductions to $2,000. Assumin
mafiozo [28]

Answer:

b. $150

Explanation:

Standard deduction refers to deduction available to an individual at a flat rate say 30%.Whereas in itemized deductions, an individual can claim deductions at different rates on different items.

Usually itemized deductions are more beneficial to an individual and in case tax saving in these cases exceeds total standard deductions, itemized deductions should be preferred.

In the given case, contribution of $1000 to church shall amount to a deduction. Since the tax rate applicable to the individual is 15%, the savings in tax shall amount to 15% of $1000 i.e $150.

4 0
2 years ago
he Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 485 pounds of cheese per day (358 days per
Kaylis [27]

Answer :

Minimum total annual cost = $3,321.26

Explanation :

The computation of the minimum total annual cost is shown below:

As per the data given in the question,

Annual demand (D) = 67 × 358 days = 23,986

Setup cost (C) = $290

Production rate (R) = 358 days × 485 = 173,630

Holding cost(H) = $0.92

Economic production quantity(Q) = sqrt((2 × D × C) ÷ H × (1-(D ÷ R)))

= sqrt(((2 × 23,986 × $290) ÷ $0.92 × (1 -(23,986 ÷ 173,630)))

= 4,188.7  

= 4,189

Minimum total annual cost is

= (Q ÷ 2) × (1 - D ÷ R) × H + (D ÷ Q) × C

=4,189 ÷ 2 × (1 - (23,986 ÷ 173,630) × $0.92+ (23,986 ÷ 4,189) × 290

= $3,321.26

6 0
3 years ago
Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of ea
Westkost [7]

Answer:

See answers below

Explanation:

1 The predetermined overhead rate

= Cost of manufacturing overhead / Cost driver.

Where cost driver

= labor cost / labor rate

= $240,192 / $12.51

= 19,200 hours

Expected overhead

= depreciation + supervisor + supplies + property tax

= 56,500 + 140,000 + 46,400 + 27,750

Total overhead = 270,650

Overhead rate = 270,650 / 19,200

= 14.10 per hour

2. The amount t of applied overhead for of 18,500 actual hours were worked on

= 18,500 hours × $14.10

= $260,850

7 0
2 years ago
A bond has a $1,000 face value and a $900 market value. The bond pays interest semi-annually, has a yield-to-maturity of 8 perce
gavmur [86]

Answer:

the current yield is 6.15%

Explanation:

Here for computing the current yield first we have to determine the monthly payment by applying the PMT formula

Given that

NPER = 5 × 2 = 10

RATE = 8% ÷ 2 = 4%

PV = $900

FV = $1,000

The formula is shown below:

= PMT(RATE;NPER;-PV;FV;TYPE)

After applying the above formula, the pmt is $27.67

Now the current yield is

= $27.67 × 2 ÷ $900

= 6.15%

Hence, the current yield is 6.15%

3 0
2 years ago
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