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dalvyx [7]
3 years ago
7

Madisun Company issued common stock for proceeds of $20,000 during 2020. The company paid dividends of $5,000. The company also

issued a long-term note payable for $35,000 in exchange for equipment during the year. The company sold treasury stock that had a cost of $3,000 for $9,000Compute net cash flows from financing activities.
Business
1 answer:
bogdanovich [222]3 years ago
4 0

Answer:

Net cash flows from financing activities is $24,000

Explanation:

Cash flow from financing activities:

Proceeds from stock issue                      $20,000

Dividends                                                  ($5,000)

Sale of treasury stock                                $9,000

net cash flow from financing activities      $24,000

The issue of long-term note payable of $35,000 does not involve an actual movement of cash,hence has zero impact on the cash flow from financing activities.

The dividends payment has negative sign because it is an outflow of cash unlike others that cash inflows.

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A bond will sell at a premium when its coupon interest rate: is lower than the market interest rate on similar bonds. equals the
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A bond will sell at premium when its coupon interest rate <u>exceeds the market interest rate on similar bonds.</u>

Explanation:

Premium bonds are the bonds that are trading above par in the market. Further on the bond would trade on premium only when it offers a coupon rate exceeding the market rate that is being offered on similar bonds.

In simple lay man's language, the term premium and discount can be understood to carry a crude definition of high and low demand. When the demand would be high, the bonds would fetch a higher value and vice-versa.

Thus Bonds would highly be valued when it is paying interest that is greater than the interest prevailing in the market contemporarily.

8 0
3 years ago
A stock expects to pay a dividend of $5.49 per share next year. Dividends are expected to grow at 20 percent per year for the fo
navik [9.2K]

Answer:

The annual dividend expected to be paid by the stock nine years from today (D9) is $11.27 per share.

Explanation:

Note: See the attached excel file for the calculations of annual dividends expected to be paid the stock for Years 1 to 9.

In the attached excel file, the following formula is used:

Current year dividend = Previous year dividend * (100% + Growth rate)

From the attached excel file, the annual dividend expected to be paid by the stock nine years from today (D9) is $11.27 per share (Note: see the bold red color under the Year's 9 Current Year Dividend).

Download xlsx
5 0
3 years ago
Bailey Corp. has the following information: Beginning Inventory (Jan 1) Ending Inventory (Dec 31) Raw Materials Inventory $ 25,3
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Answer:

See below

Explanation:

The cost of goods manufactured is computed as;

Beginning inventory

$25,300

Add ;

Raw materials purchases

$106,100

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Less:

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$39,100

Cost of goods sold

$92,300

Add:

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($26,600)

Cost of goods manufactured

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3 years ago
Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2021, the first mo
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Answer:

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3 years ago
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7 0
3 years ago
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