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3 years ago

The issuance of common stock and declaration and payment of cash dividends will result in the following:

Business

1 answer:

jeka943 years ago

8 0

Answer: a. Increase in financing activities for the issuance and a decrease in financing activities for the dividends.

Explanation:

When using the Indirect method of the Cash Flow Statement, you will find 3 sections namely, the Operating Activities, Investing Activities and Financing Activities.

The Operating Activities deal with the normal business Transactions and related entries that keep the business running.

Investing Activities have to do with entries related to Non Current Assets as well as stocks and bonds in other companies.

The above relates to the Financing Section that handles the raising of Capital needed to run the business. They include long term debt and Equity.

When new Equity is announced it is a Cash inflow for the business meaning that there will be an INCREASE in Financing Activities.

Dividends have the effect of reducing Equity so it is a Cash Outflow. This means that there will be a DECREASE in Financing Activities as a result of the declared Dividends.

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Secondary data is often gathered primary data

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Answer:

Is often gathered BEFORE primary data

Explanation:

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2 years ago

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Three documents required by Department of Trade and Industry when registering a private company

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Identification
Incorporation document
Memorandum of Incorporation

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3 years ago

There is no such thing as a free lunch.This statement best reflects the fact that a. consumers are unwilling to pay for a good u

Alexandra [31]

Answer: Option B

Explanation: Opportunity cost refers to the of loss of profit when an individual or firm chooses one alternative over other.

The statement in the given case, depicts the opportunity cost one has to pay of using the scarce resources that could be sued on different alternatives.

The lunch is never free depicts that one could have used it in other alternatives that may have produced some economic benefits.

Hence, the correct option is B.

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3 years ago

An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement F

yawa3891 [41]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %

Explanation:

Contribution Margin = Contribution ÷ Sales

Where,

<em>Contribution = Sales - Variable Costs</em>

where,

Sales :

Sales = $ 900,000

Number of Books Sold = $ 900,000 ÷ $50

= 18,000 books

Variable Costs Calculation :

Cost of goods sold $630,000

Variable selling expenses ($5 × 18,000 books) $90,000

Variable administrative expenses( 4% × $ 900,000) $36,000

Total Variable Costs $756,000

Therefore,

Contribution Margin = $756,000÷ $ 900,000

= 0.84 or 84 %

7 0

3 years ago

Zhao Co. has fixed costs of $429,000. Its single product sells for $187 per unit, and variable costs are $122 per unit. If the c

otez555 [7]

Answer:

$635,000 and : 34%

Explanation:

Margins of safety is the difference between expected sales and the break-even point.

For Zhao, expected sales are 10,000 units

The break-even points in units = fixed cost/ contribution margin per unit

fixed costs = $429,000

Contribution margin per unit = selling price - variable costs per unit

=$187 - $122

=$65

break-even point in units = $429,000/$65

break-even point = 6600 units

Margin of safety = 10,000 - 6600 units

=3400 units

In dollars is equal to margin of safety in units x selling price

=3400 x 187

as a percent of expected sales.

=3400/10000 x 100

=0.34 x 10,000

=34%

4 0

2 years ago