Answer:
<u>investing activities:</u>
acquisition of land (211,000)
sale of land (101,000)
<u>Operating Activities:</u>
gain on sale: NO EFFECT if direct method is used
adjusting the net income if the indirect method is used.
Explanation:
The cash disbursmenets and cash proceeds fro mthe purhcase and sale of land respectevely will appear as investing activities.
The gain on the sale will adjust the net incoem if the company used indirect method to determinatethe cash from operating activities.
As is a non-monetary term It will be removed.
If the company used the direct method there will be no mention to the gain on sale.
Answer:
$550,000
Explanation:
Data provided in the question
Issued amount = $550,000
Time period = 10 years
Stated interest rate = 12%
Market interest rate = 12%
Based on above information, as we can see that the stated interest rate is equal to market interest rate i.e 12% which reflects that it issued at par i.e face value
So in this case, the amount received at issuance is equal to the issued amount i.e $550,000
Answer:
Produces products that are considered elastic
Explanation:
Technological changes is one of the key determinant of the supply and we know that technological advancement in the production of a particular commodity will lead to increase the production level of the firm. This will lead to shift the supply curve rightwards, which increases the equilibrium quantity and decreases the equilibrium prices.
Hence, if the demand for the products is elastic then the total revenue of the firm increases because this firm has the more quantity effect than the price effect, so this will increase the firm's profit.
Answer: Actually refinance the obligation.
Management indicated that they are going to refinance the obligation.
Have a contractual right to defer settlement of the liability for at least one year after the balance sheet date.
The liability is contractually due more than one year after the balance sheet date.
Explanation:
A current liability is an obligation payable within a year. A short term liability can be excluded from current abilities if management indicates that they are going to refinance it and show that they are capable of doing so.
Also if the company has a contractual right to defer settlement of the liability for at least one year after the balance sheet date, the short term obligation can be excluded. The deferment means that it will be recognized in another period.
When the liability is contractually due more than one year after the balance sheet date, it stops being a current liability and becomes a non-current liability payable after a year.
