Answer:
See explanation section
Explanation:
Three reasons could be causing the opening equity balance high, and those are -
1. Issuing more common stock is one of the significant reasons for the company that causes a large amount in the opening balance of the equity account.
2. Issuing excess preference stock to involve the investors can be the other reason to get a higher amount of beginning equity balance.
3. Making much profit for the prior years, and keeping them with the retained earnings without expanding the business can be the third reason.
Evidence is usually more persuasive for balance sheet accounts when it is obtained as close to the balance sheet date as possible.
<h3>
What is a balance sheet?</h3>
An organization's assets, liabilities, and shareholder equity are displayed on a balance sheet, which is a financial statement. Balance sheets serve as the basis for determining investor return rates and evaluating a company's financial structure.
The balance sheet is a financial statement that provides a brief summary of a company's assets, liabilities, and shareholder investment. Balance sheets can be used in conjunction with other important financial data when doing basic analysis or generating financial ratios.
An organization's assets, liabilities, and shareholder equity are listed on a balance sheet, which is a financial statement. The assets on the balance sheet are equal to the total of the liabilities plus the shareholders' equity. Financial ratios are computed using balance sheets by fundamental analysts.
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Answer:
$250,000
Explanation:
Calculation for the cash flows from operating activities to be reported on the Statement of Cash Flows
Using this formula
Cash flows=Income Statement+(Accounts receivable arising from sales)
Let plug in the formula
Cash flows=$240,000 +($80,000-$70,000)
Cash flows=$240,000 +$10,000
Cash flows=$250,000
Therefore the cash flows from operating activities to be reported on the Statement of Cash Flows is $250,000
Answer:
$85.80 million.
Explanation:
The total compensation cost pertaining to the incentive stock option plan can simply be calculated by multiplying the the number shares the options permit holders to acquire by the fair value per option which is estimated by an appropriate option pricing model as given below:
Total compensation cost = 22 million × $3.90 = $85.80 million.
Therefore, the total compensation cost pertaining to the incentive stock option plan is $85.80 million.
