Answer:
a. cash received from sale of land, $200,000.
Explanation:
A statement of cash flows can be described as a financial statement that provides the summary of the amount of cash and cash equivalents that a company receives or pays during a particular period.
A cash flow statement presents how cash and cash equivalents are affected by changes in income and balance sheet accounts by breaking the analysis down to operating, investing, and financing activities.
As it can be seen above, investing activities is one of the three categories of activities that are reported in a statement of cash flows. Investing activities under the statement of cash flows therefore deals with the payments or receipts of cash and cash equivalents for the purchase and sale of long-term assets and other business investments during a particular period.
From the question, the only cash and cash equivalents transaction is the selling of land for $200,000 cash. Therefore, items in the Investing Activities section of the statement of cash flows should include cash received from sale of land, $200,000. The correct option is therefore a. cash received from sale of land, $200,000.
Answer:
A. Increase retained earnings
Explanation:
The net income earned by a company in a particular year is always used for two purposes and treated in these ways- it is either paid out as dividends or retained in the business and transferred to the retained earning account or both. Thus, if out of $1.00 earnings per share, which is basically the net income earned per share, $0.75 is paid out as dividends per share, the remaining $0.25 is retained in the business and transferred to the retained earnings account.
Answer:
0.07925 or 7.925%
Explanation:
Given that,
Revenues = $88,000
Expenses = $54,000
Assets at the beginning of the year = $404,000
End of the year assets = $454,000
Net income:
= Revenues - Expenses
= $88,000 - $54,000
= $34,000
Average total assets:
= (Assets at the beginning + End of the year assets) ÷ 2
= ($404,000 + $454,000) ÷ 2
= $429,000
Return on assets:
= Net income ÷ Average total assets
= $34,000 ÷ $429,000
= 0.07925 or 7.925%
Answer:
D. $220,000
Explanation:
In order to calculate the selling price of each of the remaining 6 homes, we need to do the following calculations shown below:
As the average of 15 homes is $200,000 each. Therefore, the total price would be
= $200,000 × 15
= $3,000,000
Now for 4 houses, the selling price would be
= $170,000 × 4
= $680,000
And for 5 homes, the selling price would be
= $200,000 × 4
= $1,000,000.
Now the selling price for 6 homes would be
= $3,000,000 - $680,000 - $1,000,000
= $1,320,000
And the average would be
= $1,320,000 ÷ 6 homes
= $220,000