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liubo4ka [24]
4 years ago
5

Exercise 12-1

Business
1 answer:
exis [7]4 years ago
4 0

Answer: Please refer to Explanation

Explanation:

In the Cashflow statement, entries are classified by what type they are under Investing, Financing or Operating Activities.

Operating Activities refer to cash paid or received from normal business operations and the expenses needed to maintain it.

Investing Activities refer to entries made relating to cash paid for the acquisition of fixed assets as these are long term. It also includes buying other company stocks and bonds.

Financing Activities refer to the funds that the the business uses to fund itself. These include long term debt and Equity.

a. Collected cash from customers. OPERATING ACTIVITY.

b. Paid cash to repurchase its own stock. FINANCING ACTIVITY.

c. Borrowed money from a creditor. OPERATING ACTIVITY.

d. Paid suppliers for inventory purchases. OPERATING ACTIVITY.

e. Repaid the principal amount of a debt. FINANCING ACTIVITY.

f. Paid interest to lenders. FINANCING ACTIVITY.

g. Paid a cash dividend to stockholders. FINANCING ACTIVITY.

h. Sold common stock. FINANCING ACTIVITY.

i. Loaned money to another entity. INVESTING ACTIVITY.

j. Paid taxes to the government. OPERATING ACTIVITY.

k. Paid wages and salaries to employees. OPERATING ACTIVITY.

l. Purchased equipment with cash. INVESTING ACTIVITY.

m. Paid bills to insurers and utility providers. OPERATING ACTIVITY.

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The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:
Gnoma [55]

Answer and Explanation:

The calculations are given below:

1. Total current assets

we know that

Current ratio = Current assets ÷ current liabilities

where,

Current liabilities  is

= Accounts payable + Accrued interest + Salaries payable

= $47,000 + $1,000 + $19,000

= $67,000

And,

Current ratio = 1.6:1

So,

Total current assets is

= 1.6 × $67,000

= $107,200

b.  Short term investment is

Short term investment = Total current assets - Cash and cash equivalents - Accounts receivables - Inventories

= $107,200 - ($5,800 + $28,000 + $68,000)

= $5,400

c. Now retained earning is

Total assets

= Total current assets + Property, plant and equipment

= $107,200 + $160,000

= $267,200

 Total liabilities is

= Current liabilities + Notes payable

= $67,000 + $38,000

= $105,000

Now Retained earnings is

= Total assets - Total liabilities  - Paid in capital

= $267,200 - $105,000 - $140,000

= $22,200

4 0
3 years ago
One measure of the importance of a publicly traded asset class in the U.S. economy can be calculated by multiplying the number o
anygoal [31]

Answer:

Market Capitalization

Explanation:

One measure of the importance of a publicly traded asset class in the U.S. economy can be calculated by multiplying the number of publicly traded shares by the current market price of the stock. The result of this calculation is more commonly referred to as market capitalization.

Market capitalization refers to the total market value of a firms shares. it is the cumulative value of the outstanding shares a publicly quoted company (a company that trades its shares in the stock exchange).

7 0
3 years ago
The following chart represents the schedule of workers and wages for an ice cream shop. Considering that this is a perfect compe
Ronch [10]

Answer:

3 workers

Explanation:

At optimal point, wage = Price * Marginal Product of Labour (MPL)

When 3 workers are employed,

Since wage is given = 25

And price = 4

When 3 workers are hired, wage is close to price * MPL because wage = 25 and p*MPL = 24

                                OR

salary paid = $25*3 = $75

Revenue generated = 24*$4= $96

This combination provides the best profit margin which is 96 - 75 = $21.

4 0
3 years ago
All of the following are examples of a business transaction except Select an answer and submit. For keyboard navigation, use the
Simora [160]

Answer:

a A. Thomas invests $2,000 in her business.

DOES NOT QUALIFY AS A BUSINESS TRANSACTION, THIS QUALIFIES AS AN INVESTMENT TRANSACTION

Explanation:

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b A. Thomas purchases a computer system on account to be used in her business. QUALIFIES AS BUSINESS TRANSACTION, INCREASES ASSETS AND LIABILITIES

c A. Thomas gives an $800 quote to a potential client for services requested.

QUALIFIES AS BUSINESS TRANSACTION, INCREASES REVENUE AND INCOME

d A. Thomas writes check 1002 out of the business checking account to pay the first month's rent on the space her business is leasing. QUALIFIES AS BUSINESS TRANSACTION, INCREASES EXPENSES AND REDUCES INCOME

8 0
3 years ago
Read 2 more answers
Which of the following is incorrect regarding how a differentiation strategy can help a firm to improve its competitive position
nirvana33 [79]

Answer:

A. Supplier power is increased, because suppliers will be able to charge higher prices for their inputs

Explanation:

3 0
3 years ago
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