Answer:
Preparation of a statement of cash flows involves five steps
1. Compute net cash provided or used by operating activities.
This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.
2. Compute net cash provided or used by investing activities.
This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.
3. Compute net cash provided or used by financing activities.
This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.
4. Compute the net increase or decrease in cash
This is the section where the cash-flow from operating, investing and financing activities is been balanced.
5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.
After the cash-flow from operating, investing and financing activities is been calculated, Then, this section is also computed to derive the Closing/Ending cash balance
Answer:
there is gain and receive is $100 long term gain
Explanation:
given data
Sadie sold = 10 shares
Sadie sold shares of stock = $500
time = 16 year ago
Sadie purchased the stock = $600
time = 2 year earlier
George sells stock = $700
to find out
amount and character of his recognized gain or loss in the current year
solution
we know that George receives dual basis in the stock
his loss = $600 - $500 = $100
and
if we consider stock is sold at a gain
then George receives a carryover basis = $600
and
if we consider stock is sold at a loss
then George receives = $500
also here his sister basis and holding period is transfer to her brother
so we can say there is gain
and receive is = proceed - carryover basis
receive is = $700 - $600
receive is $100 long term gain
Answer: b. an asset for the bank and a liability for Kellie's Print Shop. The loan does not increase the money supply.
Explanation:
Banks make money by loaning out money to people and companies. This means that loans are an asset to banks because it enables them to generate cash.
Kellie's Print Shop will have to pay back to loan however which means that it is a liability to them because they owe the bank.
This loan will not increase the money supply because if not explicitly stated that it does, we assume that the loan was made from bank deposits by other bank customers which means that it is already part of the money supply.
Answer:
Option A, total debits to the inventory account would be $37,800, is correct
Explanation:
The cost of the merchandise inventory to Wilson Company is the cost of the inventory purchased and the freight-in cost.
In other words, the amount to be recognized in merchandise inventory account is the sum of both amounts i.e $35,000+$2800=$37,800
This would be debited to merchandise inventory and $2,800 would be credited to the cash account while $35,000 is credited to accounts payable
Applying for a loan in each of the dealerships he visited will have negative consequences on his credit score.
The credit score is a term to refer to the score that people have toward the financial system. The credit score is a kind of business card for each person regarding their financial life.
One of the most common mistakes people make is when they make multiple credit applications when they intend to buy something because this is a bad practice for their credit score.
For example, if Jason completed credit applications in four different dealers, his score may drop because the entities that are going to lend him the money consider this activity as something negative.
In addition, people who apply for loans in different entities are generally forced to do so because they are denied the possibility of credit, that is, they have an unfavorable history to access a loan.
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