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.
Answer:
$14,439.8
Explanation:
The computation of operating cash flow is shown below:-
The operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - cost of good sold - depreciation expense - selling and administrative expense
= $44,432 - $14,909 - $4,965 - $10,816
= $13,742
Tax expenses = ( Earnings before interest and tax - interest expenses ) × tax rate of 40%
= ($13,742 - $3,074) × 40%
= $10,668 × 40%
= $4,267.2
So, the operating cash flow
= $13,742 + $4,965 - $4,267.2
= $14,439.8
Answer:
D.) debit Supplies Expense. $5,500; credit Supplies, $5,500
Explanation:
First, let's talk about the amount.
On June 2 they purchased supplies worth $6,500 and recorded it as an ASSET. Debited on "Supplies" Account
Then on June 30, only $1,000 is on hand. That means that $5,500 worth of supplies must have been used (Solved as 6,500 less 1,000)
Now, the entry should reduce the "Supplies" Account since there were only $1,000 left. So it's correct to credit Supplies for $5,500 to reduce $6,500 into $1,000 worth.
The corresponding debit would consequently be "Supplies Expense" since $5,500 worth of supplies was used for the month.
Answer: Land Residual Method
Explanation:
Land residual method of site evaluation is the method of estimating land value in which the net operating income attributable to the land is isolated and capitalized to produce an indication of the land's contribution to the total property.
This particular method uses income as being the basis for value and is used in appraising income producing properties.
