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Andrei [34K]
3 years ago
14

As of January 1, Year 2, Room Designs Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earni

ngs. These were the only accounts with balances in the ledger on January 1, Year 2. Further analysis of the company’s cash account indicated that during the Year 2 accounting period, the company had (1) net cash inflow from operating activities of $9,800, (2) net cash outflow for investing activities of $16,500 and (3) net cahs flow from financing activities of $11,000. All revenue and expenses events were cash events. The following account and balances represent the general ledger of Room Design Inc as December 31, 2013 before closing.Assets = Liabilities + Stockholder's equityCash 14,200 Notes payable 9000 Common stock 7500 Revenue 18,100Land 16,500 Ret. Earning 6400 Expenses 8,300 Dividents 2000What did the company purchase that resulted in the cash outflow from investing activities?
Business
1 answer:
dexar [7]3 years ago
6 0

Answer:

What did the company purchase that resulted in the cash outflow from investing activities?

It purchases Land for 16,500

Explanation:

The investing activities outflow will be for the purchase of long tem assets in cash.

The complete cash outflow for investing activities is explain it through the land account:

cash outflow: 16,500

land:               16,500

There are no other long-term assets which can explain the variance plus, the land account covers the amount entirely.

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In the country of Mashwen, the state owns key industries such as energy and transportation. The rest of the industries are priva
zzz [600]

Answer:

Mixed economy.

Explanation:

In the country of Mashwen, the state owns key industries such as energy and transportation. The rest of the industries are privately owned. Mashwen is a <u>Mixed</u> economy.

Mixed economy: It is a shared economy system, which has equal role of private enterprises and public enterprises. In the current global market, most of the economy are mixed economy. It allow private enterprises with equal opportunity to participate in the market, it create healthy competition among different player and buyer can have variety of product at low price.

8 0
3 years ago
Select all that apply GAAP and IFRS rules ______. require that the same method be used for both internal and external segment re
Alexxandr [17]

Answer:

The correct options are "A, C, and D".

Explanation:

  • GAAP becomes regarded as a relatively 'rules-based' management framework, seems to be the accounting technique used throughout the United States
  • IFRS becomes quite 'principles-based', although this would be the accounting framework used in more than 110 countries throughout the globe.
  • These allow the same approach being used for international and domestic section reporting, which generate reconciliation issues.

4 0
3 years ago
Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a
OlgaM077 [116]

Answer:

$86,050

Explanation:

Data provided in the question:

Sales = $634,000

Costs = $328,000

Depreciation expense = $73,000

Interest expense = $38,000

Tax rate = 21 percent

Dividends paid = $68,000

Now,

EBIT = Sales - Cost - Depreciation

= $634,000 - $328,000 - $73,000

= $233,000

EBT = EBIT - Interest

= $233,000 -  $38,000

= $195,000

Net income = EBT - Tax

= $195,000 - (0.21 × $195,000)

= $195,000 - $40,950

= $154,050

Addition to retained earnings = Net income - Dividends

= $154,050 - $68,000

= $86,050

7 0
4 years ago
Michael's, Inc., just paid $2.20 to its shareholders as the annual dividend. Simultaneously, the company announced that future d
Whitepunk [10]

Answer:

The maximum price that should be paid for one share of the company today is $54.895

Explanation:

The price of a stock that pays a dividend that grows at a constant rate forever can be calculated using the constant growth model of Dividend discount model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends. The formula for price today under this model is,

P0 = D1 / r - g

Where,

  • D1 is the expected dividend for the next period or D0 * (1+g)
  • r is the required rate of return
  • g is the growth rate in dividends

SO, the maximum that should be paid for this stock today is:

P0 = 2.2 * (1 + 0.048)  /  (0.09 - 0.048)

P0 = $54.895 rounded off to $54.90

5 0
3 years ago
Emmy worked late nights at a convenience store. One night, Emmy discovered that the ""emergency alert"" security system was not
Margaret [11]

Answer:

The correct answer is letter "A": for negligence because the harm was foreseeable.

Explanation:

In Law, foreseeability is a concept related to what the proximate causes could be after an event. The concept is helpful to determine the limit of liability according to the primary event that happened and the type and manner of harm. The harm caused by rescuers like firefighters and negligence of health care providers like doctors and nurses is considered foreseeable.

<em>In Emmy's case, the repeated thefts to the store where she works while having a nonfunctioning alarm (negligence) make the store owner liable for the injuries caused by a perpetrator who broke Emmy's leg during a robbery since that event was foreseeable.</em>

6 0
3 years ago
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