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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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Answer: . two-stage area

Explanation:

In two-stage specimen sampling, a simple random sample of specimen is selected and then a simple random sample is selected from the units in each sampled specimen. Two-stage sampling is used when the sizes of the specimens are large, making it difficult or expensive to observe all the units inside them.

7 0
3 years ago
Read 2 more answers
Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual div
Colt1911 [192]

Answer:

There's an error in the numbers for this question; I found the correct one and pasted it below;

"Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $1.30 per share but all future dividends will be decreased by 2.75 percent annually. What is a share of this stock worth today at a required return of 15.5 percent? "

Explanation:

Use dividend discount model (DDM) to calculate the stock price

P0 = \frac{D0(1+g)}{r-g}

whereby,

P0 = Current price

D0 = Last dividend paid = 130

g = growth rate = -275% or -2.75 as a decimal

r = required return = 155% or 1.55 as a decimal

Next, plug in the numbers to the DDM formula above;

P0 = \frac{1.30(1-0.0275)}{0.155 + 0.0275} \\ \\ = \frac{1.2643}{0.1825} \\ \\ =6.9277

Therefore this stock is worth $6.93

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3 years ago
Faruq spends all of his income on two goods: tacos and milkshakes. His income is $100, the price of tacos is $10, and the price
ANTONII [103]

Answer:

8

Explanation:

Amount he can spend on tacos = income - total price of milkshakes

total price of milkshakes = 2 x 10 = 20

100 - 20 = 80

quantity of tacos = 80 / 10 = 8

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2 years ago
You're on a social media team for a outdoors brand called Appalachia. They've decided to revitalize their Pinterest account and
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Inbound marketing is the process of coordinating and facilitating potential customers to find a particular company.

An outdoor brand called Appalachia can revitalize its Pinterest account and engage its customers on the platform by streamlining content creation:

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3 0
1 year ago
Suppose a new car company sought to enter the rental car market, and Enterprise, Avis and Hertz responded by offering rentals ve
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Because Avis and Hertz are offering rentals at a prices below average variable cost, the company may not be able to meet up with capital for production of more cars, and this will cause them to wind up.

For a new company, it is always advisable to keep it's selling price a little bit above or the same with it's cost Price, because the strength not any business is the ability to produce more to fill the space of scarcity.

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3 years ago
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