1) Debit changes to current assets are added or subtracted from net income _____?

Business

1 answer:

V125BC [204]2 years ago

7 0

Answer

(1)Subtracted (2) Subtracted (3) Subtracted (4) yes, it will affect the statement of cash flow as the amortization of bonds payable (premium) to be added back to the Net income because, it is a non cash expense.

Explanation:

Solution

Given that:

(1) The changes of debit to current assets are added or subtracted from net income:

Answer: They are subtracted from net income

(2) The changes of debit to current liabilities are added or subtracted from net income.

Answer: they are subtracted from net income

(3) Redemption gains of bonds are added or subtracted from net income.

Answer: Gains on redemption of bonds are subtracted from net income

(4), Yes, it will affect the statement of cash flow As the amortization of bonds payable (premium) to be added back to the Net income, because it is a non cash expense.

Thus the cash flow statement is adjusted.

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M. Bot Corporation has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No divi

Andru [333]

Answer:

$135000

Explanation:

Given: Outstanding cumulative preferred stock of 10000 shares of 8% at $100

Dividend paid= $375000.

Now, calculating preferred stock.

Preferred stock= $(10000 shares\times $100\times 8\%)= \$ 80000$

∴ Preferred stock= $80000

Cumulative dividend paid to shareholder= $(80000\times 2 + 80000) = \$ 240000.$

∴ Cumulative dividend paid to shareholder= $240000

Next, computing the amount of dividends will common stockholder receive.

Total dividend paid= $375000.

Dividend received by common stockholder= $(\textrm {Total dividend paid - cumulative dividend paid})$

⇒ Dividend received by common stockholder= $(375000-240000)= \$ 135000$

∴ $135000 dividend will be received by common stockholder.

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3 years ago

Explain why each of the following statements is a rationale for conducting active or passive policy: Economic circumstances can

Vladimir79 [104]

Answer:

The rationale for conducting active policy is the interest of Congress to alter the state of the economy through a deliberate change in established policies.

But in the case of Passive policy, the government permits the status quo.

Active policy relies on the government to enforce it while passive policy does not need the government's interference to work in stabilizing the economy.

Explanation:

The following statements applies passive policy because the economy is expected to stabilize on it's own without the deliberate act of congress influencing it:

Economic circumstances can change dramatically between the time that an economic downturn begins and the time when policy actions have an effect on the economy.
Fluctuations in economic output have been less severe since World War II.

The following statements is a rationale for conducting active policy since the government's intervention is required: