All categories

3 years ago

The capital account records Question 2 options:

Business

1 answer:

Paraphin [41]3 years ago

3 0

Answer:

c. transactions involving foreign investment in the United States and U.S investment abroad.

Explanation:

The capital account provides the record of foreign investment transactions occurring between a country and another country. It gives an idea of money coming in and out of the state. A surplus in the capital account record is indicative of the inflow of money in the country, while a deficit indicates the loss of money.

Debt accrued by a country, banking, loans and investment are all reflected in the capital account record. So, for a person to determine a nations assets and liabilities, the capital account would provide an accurate insight to that information.

You might be interested in

On January 1, 2013, the Accounts Receivable balance was $18,500 and the balance in the Allowance for Doubtful Accounts

Brrunno [24]

Answer: A

Explanation: Recieveable balance $18500, this is the cash inflow of the company

Allowance for doubtful accounts $1400 this is usually a percentage of money set aside from cash inflow for debts e.t.c.

Unaccountable account $400 usually debts

Receivable after deduction of allowance of doubtful accounts.

$18500 - $1400 = $ 17100

Allowance of doubtful accounts after deduction of debts

$1400 - $400 = $1000

Amount receivable immediately after write off

$17100 + $1000 = $18100

8 0

4 years ago

Read 2 more answers

The following information is available for Wildhorse Co. for the month of January: expected cash receipts $59,320; expected cash

ziro4ka [17]

Answer:

Ending cash balance$8,230

Explanation:

Preparation of basic cash budget for the month of January.

Wildhorse Co CASH BUDGET for the month of January

Beginning cash balance$11,890

Add: Cash receipts $59,320

Total cash available $71,210

($59,320+$11,890)

Less: Cash disbursements ($66,850)

Excess of available cash over cash disbursements $4,360

Financing needed $3,870

($8,230-$4,360)

Ending cash balance$8,230

Therefore the basic cash budget for the month of January will be $8,230

5 0

3 years ago

During a drought in the southeastern United States, marketing campaigns were implemented to encourage consumers to use less wate

AlladinOne [14]

Answer:

De-marketing.

Explanation:

De-marketing is a type of marketing used to decrease or slow down the demand for products that are in short supply. It is can be an effort made through advertisements or campaigns that encourages the public to limit the consumption of a product, as at a time of shortage.

De-marketing, during drought, can be deployed to encourage consumers to use less water.

5 0

3 years ago

During 2018, raines umbrella corp. Had sales of $705,000. Cost of goods sold, administrative and selling expenses, and depreciat

Ghella [55]

Answer: Even though Raines Umbrella Corp has a net loss, its operating cash flow is positive $165,000. This indicates that the company has sufficient cash balance to pay dividends of $102,000.

The net new long-term debt is $7000.

We follow these steps to arrive at the answer:

Calculating Net Income:

Sales 705000

less: Cost of goods sold -445000

Administrative and Selling expenses -95000

Depreciation -140000

EBIT 25000

less: Interest 70000

Net loss -45000

Calculating operating Cash Flow OCF:

$OCF = EBIT + Depreciation - Taxes$

Since Raines has a net loss, there are no taxes. So

$OCF = 25000 + 140000 - 0$

$\mathbf{OCF = 165000}$

Calculation of cash flow from assets:

\mathbf{Cash Flow from assets = OCF + net change in capex spending + change in net working capital}

Since spending on net fixed assets and net working capital is zero,

$\mathbf{Cash Flow from assets = OCF = 165000}$

Calculation of cash flow to stockholders

$\mathbf{Cashflow to stock holders = Dividends paid - net new shares issued}$

$\mathbf{Cashflow to stock holders = 102000 - 0 = 102000}$

Cash flow to creditors:

We determine cash flow to creditors as follows:

$\mathbf{Cashflow to creditors = Interest paid - Net new borrowings}$

$\mathbf{Cashflow to creditors = 70000 - Net new borrowings}\\$

The Cash Flow identity is given by:

$\mathbf{Cashflow from assets = Cash flow to shareholders + Cashflow to creditors}\\$

$\mathbf{165000 = 102000 + 70000 - Net new debt}$

$\mathbf{Net new debt = 7000}$

3 0

3 years ago

1. Brian Brewster sold property to a buyer who paid him $400,000 cash and the buyer assumed Brian’s existing mortgage of $150,00

nalin [4]

Answer:

gain on sale of property = $330,000

so correct option is E) $330,000

Explanation:

given data

sale price = $400,000

existing mortgage = $150,000

property cost = $250,000

improvements = $50,000

Depreciation = $100,000

selling expenses = $20,000

to find out

the amount of gain realized

solution

we find first net sale price that is

net sale price = sale price + existing mortgage - selling expenses ..........1

put here value we get

net sale price = $400,000 + $150,000 - $20,000

net sale price = $530,000

and

net book value of property is

net book value = property cost + improvements - Depreciation ..........2

put here value we get

net book value = $250,000 + $50,000 - $100,000

net book value = $200,000

gain on sale of property is

gain on sale of property = net sale price - net book value of property ..........3

put here value we get

gain on sale of property = $530,000 - $200,000

gain on sale of property = $330,000

so correct option is E) $330,000

3 0

3 years ago

Read 2 more answers