Answer:
a. Issued bonds for $200,000 cash ⇒<u> Cash inflow from Financing Activities. </u>
Financing activities refer to those that bring in capital to the company. This capital comes in the form of equity and long term liabilities like bonds. Money coming in from bonds will therefore be an inflow here.
b. Purchased equipment for $150,000 cash. ⇒ <u>Cash Outflow from Investing Activities </u>
Investing activities have to do with the fixed assets of the company as well as investments into the securities of other companies. Money is leaving the company to purchase the fixed asset here -equipment - so this is an outflow.
c.Sold land costing $20,000 for $20,000 cash. ⇒ <u>Cash inflow from Investing Activities.</u>
As already stated, Investing activities relate to fixed assets. Selling a fixed asset such as land will therefore bring in cash from investing activities.
d. Declared and paid a $50,000 cash dividend⇒ <u>Cash Outflow from Financing activities</u>
As financing activities relate to equity, dividends will be a cash outflow from here because it is cash that is leaving the company to go to equity holders.
The correct answer is letter C. Pre-Sales
Pre-Sales is carried out before a producer managed to acquire customers, sometimes even before the products are being launch.
Usually customers get a significant amount of discount if they bought the product through pre-sales process, but they have to wait a little bit long before they got the products
The answer is globalization.
This is when you are now bringing your economy from domestic to
international level where you are now engaging in business transactions with other
countries overseas. There will be many hurdles but these are necessary when
competing in the global market.
Answer:
The answer is C: 14300
Note: The actual answer is 14296, <em>and </em>the closest to that was option C.
Explanation:
Formula to calculate forecast using Exponential smoothing:
Where,
= New Forecast 
= Previous period's forecast.
= Smoothing Constant 
= Previous period's Actual Demand.
- Calculating the forecast for period 5:
Data:
Putting <em>values in the formula:</em>
Answer:
A. $840,000
B. Discount
C. Annual interest expense on these bonds will be more than the amount of interest paid each year.
Explanation:
Data
Bonds issued = $21,000,000
Coupin rate = 4.0%
Market Interest rate = 4.46%
Requirement A: Annual interest amount
Interest amount = Bonds issued x coupon rate
Interest amount = $21,000,000 x 4.0%
Interest amount = $840,000
Requirement B: Whether it is Premium or Discount?
Bonds that Atom Endeavour Co. issued are discount as you can clearly see in the data that the market rate is higher than the coupon rate. Investors who will buy these bonds surely expect a capital gain.
Requirement C:
The discount on the issue of bonds is amortized to interest expense over the life of the bond, therefore the interest expense on these bonds will be more than the amount of interest paid each year,
