The answer is true. Companies improve the pay through performance linkage. Discrepancies and unfairness can be reduced by introducing gainsharing, ESOPs, and other plans that use objective performance measures. Where subjective measures of performance are essential, companies should depend on on multiple sources of information. Companies also must apply rewards soon after the presentation occurs, and in a large-enough dose (such as an extra pay rather than a pay increase), so that employees experience positive emotions when they receive the reward.
Answer:
$35,000 (inflow)
Explanation:
Net investing cash flows is computed as follows;
Inflow:
Issued common stock $75,000
Sold equipment 40,000
Total $115,000
Less: outflow
Purchased land $60,000
Paid dividends 20,000
Total outflow $80,000
——————
Net investing cash flows $35,000
*positive cash flows (inflow is greater than outflow) will increase the amount cash of the company
*proceeds from the bank classified as financing activity
*paid employees and sold services to customers are fall under operating activities
