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3 years ago

Classify each of the following items as an operating,investing,or financing activity.

Business

1 answer:

Leokris [45]3 years ago

6 0

Answer:

Operating Activities

3. Payment for inventory.

5. Interest paid.

Investing Activities

4. Purchase of equipment.

Financing Activities

1. Dividends paid.

2. Repayment of notes payable.

Explanation:

Operating Activities involves activities in the trading operations of the business.

Investing Activities involves activities in acquisition and sale of Company assets or Investments

Financing Activities involves activities in the sourcing and repayment of sources of finance to holders of the instruments.

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Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million, the increase in t

hram777 [196]

Answer: False

Explanation:

A tariff is a tax that is imposed by the government of a particular country in order to curtail the number of imported goods brought into the country.

Based on the above scenario, the reduction in consumer surplus is not $500 million but rather $600 million which is the addition of $100 million, $200 million and $300 million.

Therefore the question is false.

6 0

3 years ago

For each of the following transactions of JonesSpa Corporation, for the month of January, identify each as an investing activity

expeople1 [14]

Answer:

1. Paid cash to purchase inventory

OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT

2. Purchased land by issuing common stock

NON CASH INVESTING AND FINANCING ACTIVITY, DOES NOT AFFECT CASH FLOW STATEMENT

3. Accounts receivable decreased in the year

OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT

4. Sold equipment for cash

INVESTING ACTIVITY, INCREASES CASH FLOW STATEMENT

5. Recorded depreciation expense

OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT

6. Income taxes payable increased in the year

OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT

7. Declared and paid a cash dividend

FINANCING ACTIVITY, DECREASES CASH FLOW STATEMENT

8. Accounts payable decreased in the year

OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT

9. Paid cash to settle notes payable

FINANCING ACTIVITY, DECREASES CASH FLOW STATEMENT

10. Prepaid expenses increased in the year

OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT

11. Sold inventory for cash

OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT

12. Paid cash to acquire treasury stock

FINANCING ACTIVITY, DECREASES CASH FLOW STATEMENT

13. Net income

OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT

14. Decrease in accrued liabilities

OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT

15. Increase in prepaid expenses

OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT

8 0

3 years ago

Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May:

ira [324]

Answer:

Can you simplify your question. We ask of you to simplify the question so its easier to com up with a answer

Explanation:

SIMPLIFY THE QUESTION

8 0

3 years ago

Luke is an ordained minister. Luke's salary from his employing church last year was $31,000. The church did not designate any of

nirvana33 [79]

Answer

$31,000

Explanation:

Explanation:

As per IRS for Earnings of Clergy, A licensed, commissioned, or ordained minister who performs ministerial services as an employee may be able to exclude from gross income the fair rental value of a home provided as part of compensation (a parsonage) or a housing allowance provided as compensation if it is used to rent or otherwise provide a home. In order to be able to exclude the housing allowance from income, the minister's employing organization must officially designate the housing allowance as such before paying it to the minister.The fair rental value of a parsonage or the housing allowance is excludable only for income tax purposes, and not for Self-employment tax purpose.

In the given case, the church did not designate any of Luke's salaries as a housing allowance. Hence it is not deductible from Gross Income for Income Tax Purposes and irrespective of designation or not, it is not deductible for self-employment tax.

Thus, Full salary of Luke i.e $31,000 must be included when figuring net income for self-employment tax.

7 0

3 years ago

Radoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a

gtnhenbr [62]

Answer:

YTM = 0.6940%

Explanation:

THe Yield to Maturity (YTM) is the return that you expect from the bond if you held the bond till maturity.

The formula would go as:

YTM = $\frac{F}{P}^{\frac{1}{n}} -1$

Where

F is the face value, or par value

P is the current price

n is the time period, maturity period

Given,

F = 1000

P = 920

n = 12, we have:

YTM = $\frac{F}{P}^{\frac{1}{n}} -1 = \frac{1000}{920}^{\frac{1}{12}} -1=0.006972$

Thus, the yield to maturity would be:

YTM = 0.6940%

5 0

3 years ago