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sweet [91]
3 years ago
9

Determine how the following scenarios affect the firm's cash position. Identify whether the scenario describes a financing, inve

sting, or operating activity (as defined on the Statement of Cash Flows).
Now, indicate which of the scenarios above are expected to increase a company's cash flow.
1. Pay preferred stock dividends
2. Buy property for a future factory
3. Issue shares of common stock
4. Increase accrued liabilities
5. Sell some old equipment
Business
1 answer:
pochemuha3 years ago
4 0

Answer and Explanation:

The classification is as follows:

1. Dividend of preferred stock paid - Financing activity

2. Purchase of the property for a future factory - Investing activity

3. Issuance of the common stock shares  -  Financing activity

4.Rise in  accrued liabilities - Operating activity

5. Sell some old equipment - Investing activity

The following are expected to increase in the cash flow

1.  Issuance of the common stock shares

2. Rise in  accrued liabilities

3. Sell some old equipment

Increase inventory holdings - Operating activity

Sell a tract of land it has held for years - Investing activity

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Answer: Zoning Ordinances

Explanation:

Here, in this particular case the architect requires the respective city's zoning ordinance in order to build the contemporary community center. Zoning ordinance can be easily described as the written rule or code and the law which further defines how a property in a particular geographic area can be utilized. These ordinances also specify whether the area can be utilized for the commercial or residential intention.

5 0
3 years ago
If you attended a performance in which the only scenery was a single, gnarled pine, you would have good reason to guess that you
yaroslaw [1]

Noh a performance in which the only scenery was a single, Gnarled pine.

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Noh drama is a prime form of classical Japanese dance-drama that has been accomplished in the reason that 14th century. Developed with the aid of Kan'ami and his son Zeami, it is the oldest predominant theatre artwork that is nonetheless regularly finished nowadays.

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3 0
1 year ago
Lani's generated net income of $911, depreciation expense was $47, and dividends paid were $25. Accounts payables increased by $
guajiro [1.7K]

Answer:

What was the net cash flow from operating activity? $959

Explanation:

Net Income                 911  

Addition to cash    

Depreciation                   47  

 

958  

 

Operation activities  

Account Payable               15 Increase

Account receivables      -28 Increase

Inventory                         14 Decrease

 

Cash flow from

operating activities      959  

5 0
3 years ago
Describe the difference between cost of goods and operating expenses.
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Both operating expenses and cost of goods sold (COGS) are expenditures that companies incur with running their business. However, the expenses are segregated on the income statement. Operating expenses and COGS measure different ways in which resources are spent in the process of running a company.

8 0
2 years ago
Journalizing purchase and sales transactions
Firdavs [7]

Based on the given purchase and sale transactions, the journal entries are:

Date             Account Title                                   Debit                    Credit

Feb 3      Merchandise inventory                   3,300

                            Account payable                                       3,300

Feb 7            Account payable                               900

                    Merchandise inventory                                               900

Feb 9            Merchandise inventory                    400

                      Cash                                                                               400

Feb 10           Account receivable                        4,700

                      Sales revenue                                                             4,700

Feb 10            Cost of goods                                  2,350

                       Freight out                                          370

                      Merchandise inventory                                            2,350

                      Cash                                                                             370

Feb 12             Account payable                             2,400

                       Cash                                                                          2,328

                       Merchandise inventory                                                 72

Feb 28             Cash                                                 4,606

                         Sales discount                                      94

                         Account receivable                                               4,700

<h3 /><h3>What are the journal entries?</h3>

When goods are purchased, they will be debited to the Merchandise inventory account. If they were paid for with cash, they will be credited to the cash account. On account is credited to Accounts Payable.

When goods are sold, the cost of goods sold will have to be debited to account for the cost of the purchase that is now being sold.

Because the goods were paid for in the discount period, a 3% discount would apply:

= 2,400 x (1 - 3%)
= $2,328

A 2% discount would apply to the Feb 10. sales for the same reason:
= 4,700 x (1 - 2%)

= $4,606

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4 0
2 years ago
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