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3 years ago

Which of the following is a noncash investing and financing activity?

Business

1 answer:

mrs_skeptik [129]3 years ago

8 0

Answer:

Issuance of common stock to acquire land is a non-cash investing and financial activity.

Explanation:

Payment of note payable, payment of cash dividend and purchase of inventory on account all involve cash transactions.

Here, the issuance of common stock is a financial activity. Acquiring land can be categorized as an investing activity. To acquire land common stock is issued, cash is not involved.

So, the issuance of common stock to acquire land is non-cash investing and financial activity.

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You are the financial analyst at Sew Mart, an arts and crafts retail store. Your boss has asked you to review the company's fina

mario62 [17]

Answer:

1. It has worsened

2. Yes (refer details below)

3. Refer details below

Explanation:

1. Performance

The performance of the company over the last three years has worsened as indicated by declining sales and decreasing current ratios impacting profitability and liquidity of the company.

2. Concerns

One of the most important concern for the company is its declining sales. It shows that the products are not competitive. Current ratios indicates liquidity crisis since they are decreasing.

3. Recommendations

The company's turnover ratio is high, which may indicates payments are being received timely, and hence the co. should take advantage of that

Low inventory turnover, on the other hand, indicates weaker sales and declining demand for a company’s products which is corroborated by the declining sales trend, the co. must increase its sales, launch new products, advertise aggressively.

8 0

3 years ago

1. The DE partnership is undergoing an installment liquidation. Partners D and E share income in a 3:2 ratio and have current ca

xz_007 [3.2K]

Answer:

The correct answer is option (C):

$30,000 to D; $20,000 to E

Explanation:

The key to solving this problem is to take not of the ratio at which income are shared which is 3:2 for partners D and E respectively. This means that out of every 5 parts (3 + 2), partner D gets 3 parts and the remaining 2 parts is for partner E.

Amount available to be shared = $50,000

Therefore amounts each partner gets is calculated thus:

Partner D:

3/5 of 50,000

= 3/5 × 50,000 = 0.6 × 50,000 = $30,000

Partner E:

2/5 of 50,000 = 0.4 × 50,000 = $20,000

hence partner D gets $30,000 while partner E gets $20,000

8 0

3 years ago

Economies of scale are ways that a company can lower the cost per unit by selling more units overall

Troyanec [42]

It’s True that economies of scale are ways that a company can lower the cost per unit by selling more units overall

7 0

3 years ago

If everyone buys the same goods every year and the price of housing rises by 38 percent, it is

OverLord2011 [107]

It is not possible to tell what happened to the CPI because other than for housing , we do not know what happened to the prices of any of the other goods.

7 0

4 years ago

Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a ta

hjlf

Answer:

The earnings per share figure is $1.89

Explanation:

Sales of $602,000

Costs of $256,000

Depreciation expense of $62,500

Interest expense of $29,500

Tax rate of 40 percent.

-> Profit Before Tax = Sales - Cost - Depreciation Expense - Interest expense

= $602,000 - $256,000 - $62,500 - $29,500

= $254,000

Net profit = Profit before Tax x (1 - Tax rate) = $254,000 * (1 - 40%) = $152,400

Earnings per share = (net profit - dividend paid for preferred stock)/ common stock outstanding = ($152,400-$44,500)/ 57,000

= $1.89

7 0

4 years ago