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zalisa [80]
3 years ago
11

Santa Fe Company was started on January 1, Year 1, when it acquired $9,000 cash by issuing common stock. During Year 1, the comp

any earned cash revenues of $4,500, paid cash expenses of $3,750, and paid a cash dividend of $250. Which of the following is true based on this information?
a. The 2016 statement of cash flows would show net cash inflow from operating activities of $2,450.
b. The 2016 income statement would show a net income of $1,300.
c. The 2016 statement of cash flows would show a net cash flow from financing activities of $9,700.
d. The December 31, 2016 balance sheet would show total equity of $15,750.
Business
1 answer:
Nitella [24]3 years ago
7 0

Answer:

All of the options are false.

Explanation:

The net income is an element that increases the owners' equity while dividend paid reduces it. Both are elements of the cash flows for operating and financing activities respectively.

Considering the information given;

Acquired $9,000 cash by issuing common stock - This is an inflow of cash and forms the owner's equity balance at the start of the year.

During Year 1, the company earned cash revenues of $4,500, paid cash expenses of $3,750 - These are elements of the income statement and will result in a net income of $500 ($4,500 - $3,750 - $250).

and paid a cash dividend of $250 - This is a reduction in the owner's equity and is a cash outflow.

Now a review of all the options;

a. The 2016 statement of cash flows would show net cash inflow from operating activities of $2,450. - Net  cash flow from operating activities is $750 (($4,500 - $3,750). Hence this is false.

b. The 2016 income statement would show a net income of $1,300. - As shown in the consideration, this is false.

c. The 2016 statement of cash flows would show a net cash flow from financing activities of $9,700.  - Net cash flow from financing is

= $9000 - $250 = $8750

d. The December 31, 2016 balance sheet would show total equity of $15,750 - Total equity

=$9000 + $4,500 - $3,750 - $250 = $9,500

Hence all of the options are false.

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The correct answer is  D

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In the calculation of weighted average cost of capital, the before tax cost of debt is adjusted for tax so as to obtain the after-tax cost of debt. Cost of equity and cost of preferred stocks will not be adjusted for tax.

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Item 16Item 16 Oscar makes purchases of an existing product (X) such that the marginal utility of the last unit he consumes is 1
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gAlex has been the highest performer within his department for the last five years. Vera, the Head of the Division in which Alex
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Complete question:

Alex has been the highest performer within his department for the last five years. Vera, the Head of the Division in which Alex works, has decided to promote Alex to reward him for his hard work and dedication to the firm. Vera believes that his technical proficiency will inspire the rest of the team to work harder and become more accurate.

Is Vera's reasoning sound? Does Alex's technical proficiency help to ensure his success as a manager?

a. Yes, Alex's high expectations will make him a better manager.

b. No, human relations skills are just as important as technical expertise.

c. Yes, technical proficiency is the key to managerial success.

d. Yes, technical proficiency in a manager is inspirational to teams.

Answer:

(B) No, human relations skills are just as important as technical expertise.

<h3>What is technical expertise?</h3>
  • Technical skills are the particular knowledge and competence required in real-world circumstances to complete certain jobs and use specific equipment and programs.
  • From information technology and corporate administration to health care and education, diverse technical abilities are necessary for almost every sector and industry.
  • Technical skills are the particular knowledge and competence required in real-world circumstances to complete certain jobs and use specific equipment and programs.
  • From information technology and corporate administration to health care and education, diverse technical abilities are necessary for almost every sector and industry.
<h3>What are relations skills?</h3>
  • This includes communicating openly, actively listening, cooperating, refusing improper social pressure, constructively negotiating disagreement, and seeking and offering assistance when needed.
  • Relationship skills are essential for personal and professional success.
  • Trust, respect, self-awareness, inclusiveness, and open communication are all required for a healthy professional relationship.
  • Let's take a closer look at each of these traits.
  • You can be open and honest in your ideas and actions when you trust your team members.

So, in this instance, Vera is attempting to argue that interpersonal skills are just as vital as technical skills.

Therefore, the correct option is (B) No, human relations skills are just as important as technical expertise.

Know more about technical skills here:

brainly.com/question/26895031

#SPJ4

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