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lys-0071 [83]
3 years ago
10

The following selected transactions occur during the first year of operations. Determine how each should be reported in the stat

ement of cash flows.
1. Issued one million shares of common stock at $20 per share.
2. Paid $75,000 to suppliers for inventory.
3. Paid a dividend of $1 per share to common stockholders.
4. Loaned $50,000 to an employee and accepted a note receivable.
Business
1 answer:
svlad2 [7]3 years ago
5 0

Answer:

1. Issued one million shares of common stock at $20 per share.

The proceed of the issuance of common stock shall be taken as cash inflow in the financing activities.

2. Paid $75,000 to suppliers for inventory.

The payment made to the suppliers shall be taken as outflow in the operating activities.

3. Paid a dividend of $1 per share to common stockholders.

The payment made to common stockholders shall be taken as outflow in the financing activities.

4. Loaned $50,000 to an employee and accepted a note receivable.

The loan given to employee shall be taken as outflow in the operating activities.

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Dee's made two announcements concerning its common stock today. First, the company announced that the next annual dividend will
amid [387]

Answer:

The value of the stock at the given discount rate is $9.5

Explanation:

Here, we are interested in calculating the value of the stock at the given discount rate.

To do this, we employ a mathematical formula;

Value of the stock = Expected dividend ÷ (discount rate-growth rate)

According to the question, we identify the following;

Expected dividend = $1.58

Growth rate(negative) = -1.15% = -1.15/100 = -0.0115

Discount rate = 15.5% = 15.5/100 = 0.155

Plugging these values into the equation, we have;

Value of the stock = 1.58 ÷ (0.155 - (-0.0115)

Value of the stock = 1.58/(0.155 + 0.0115)

Value of the stock = 1.58/0.1665 = $9.5

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3 years ago
The Nasdaq Composite Index: a. is made of of mainly newer, smaller firms. b. is a price-weighted index. c. is made up of over 50
rodikova [14]

Answer:

A. is made of of mainly newer, smaller firms.

Explanation:

4 0
3 years ago
Your son is born today and you want to make him a millionaire by the time he is 50 years old. You deposit $50,000 in an investme
mel-nik [20]

Answer:

1000000= 50000 (1+ \frac{i}{1})^{1*50}

20 = (1+i)^{50}

20^{1/50} = 1+i

i = 20^{1/50} -1 = 0.0617

And if we convert this into % we got i = APR = 6.17 \%

See explanation below.

Explanation:

We assume that we have compounding interest.

For this case we can use the future value formula given by:

FV= PV (1+\frac{i}{n})^{nt}

Where:

FV represent the future value desired = 1000000

PV= represent the present value = 50000

i = the interest rate that we desire to find in fraction

n = number of times that the interest rate is compounding in 1 year, since the rate is annual then n=1

t = represent the number of years= 50 years

So then we have everything in order to replace and we got:

1000000= 50000 (1+ \frac{i}{1})^{1*50}

Now we can solve for the interest rate i like this:

20 = (1+i)^{50}

20^{1/50} = 1+i

i = 20^{1/50} -1 = 0.0617

And if we convert this into % we got i = APR = 6.17 \%

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an economy in which all the boys became farmers when they are adults just as their fathers and grandfathers did would be an exam
sergeinik [125]
That would be an example of traditional economy.
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Generally, a business should consider insuring against an event when the risk
posledela

Answer:

A

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The econimac situatiom will detertoarte further.

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