Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
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Answer:
$15,000 cash inflow from financing activities
Explanation:
Financing operations: it records operations concerning long-term debt and equity balance of shareholders. The issuance of the shares is an inflow of cash while other redemption and dividend are an outflow of cash
Since 1,000 shares are issued at $10 par value for $15 per cash
Here we record the $15,000 as cash inflows as this represents that the capital introduced in the business and the same is to be considered
Answer:
Each hour she spends swimming is an hour that she can't spend biking or running. The basic principle this sentence illustrates is:
All choices have opportunity cost.
Explanation:
As per the given situation, Caroline decides to go for swimming. So the time she invests in swimming, she could have done for biking or running during that time. So, opportunity cost of one hour of swimming is an hour of biking or running. Also it is not known that whether Caroline has an incentive if she spends more time swimming. This applies for an hour spent for biking or running as well. Thus, all the three choices have an opportunity cost.
