Answer: d. a deduction of $80,000 under financing activities.
Explanation:
Under the indirect method of showing cashflows, there are 3 sections being the Operating section, the investing section and the financing section.
The relevant section is the financing section. Financing activities are those transactions that relate to the business raising capital to fund their operations. They do this through long term debt and equity.
Dividends is a payment to shareholders and so falls under equity so by extension falls under the financing section. As dividends reduce the amount of money the company has, it is also a deduction.
The answer is
D. Debit Cash $2,000; debit Equipment $4,000; credit Nathan’s Capital $6,000
Answer:
Mointaintop should charge 84.18 dollars per round of golf to achieve his desired return.
Explanation:
return:
50,000,000 x 12% = 6,000,000
fixed cost: 24,000,000
Variable cost: 16 per golfer
golfers expected 440,000
It should price to pay up the variable cost, fixed cost and achieve the 12% return:
S = 84,18181818181818
It should charge per round 84.18 dollars