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3 years ago

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The following information was taken from the 2021 financial statements of Waterway Industries: Bonds payable, January 1, 2021 $

809000 Bonds payable, December 31, 2021 4830000 During 2021 • A $725000 payment was made to retire bonds payable with a face amount of $807000. • Bonds payable with a face amount of $319000 were issued in exchange for equipment. In its statement of cash flows for the year ended December 31, 2021, what amount should Waterway report as proceeds from issuance of bonds payable?

1 answer:

zalisa [80]3 years ago

4 0

Answer:

the amount reported as proceeds from bond issuance is $4,509,000

Explanation:

The computation of the amount reported as proceeds from bond issuance is as follows

Total Bond Issued during 2021

= Bonds payable, December 31, 2021 - Bonds payable, January 1, 2021 + Bond Payable retired

= $4,830,000 - $809,000 + $807,000

= $4,828,000

Now

Bond issued for cash is

= Total bond issued - Bonds issued in exchange for Equipment

= $4,828,000 - $319,000

= $4,509,000

Hence, the amount reported as proceeds from bond issuance is $4,509,000

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20. Anna reports the following income and loss: Salary$ 135,000 Income from activity A60,000 Loss from activity B( 35,000) Loss

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Answer:

Based on this information, Anna has the following suspended losses:

A) Activity B Activity C

$11,667 $18,333

Explanation:

a) Data and Calculations:

Income and Loss:

Salary $ 135,000

Income from activity A 60,000

Loss from activity B ( 35,000)

Loss from activity C ( 55,000)

The loss from activity B and activity C are reduced by the income from activity A in proportion.

Thus, the income from activity A reduces the losses in B and C:

Income from activity A $60,000

Activity B loss of $35,000 is reduced by $60,000 * $35,000/$90,000 = $23,333 to $11,667 ($35,000 - $23,333)

Activity C loss of $55,000 is reduced by $60,000 * $55,000/$90,000 = $36,667 to $18,333 ($55,000 - $36,667)

b) Note that the losses from activities B and C cannot be reduced by the salary income because both activities are passive sources of income and not active like salary.

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3 years ago

Like many other marketing strategy specialists, Mike relies heavily on creativity and originality. Members of his team are selec

damaskus [11]

Answer:

<u>Brainstorming.</u>

Explanation:

The situation exposed in the question above is an example of brainstorming, which can be defined as a group dynamics technique where there is the generation of ideas for a given project.

This activity is developed with the main objective of exploring the creative and innovative capacity of an individual or a group, stimulating the team's creativity, collecting ideas and the maximum amount of information, visions and possibilities in order to achieve a determined objective.

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3 years ago

Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below:

Sunny_sXe [5.5K]

Answer:

PV Index = 1.158

Explanation:

Present value index is the ratio of discounted cash flows of the project divided by initial outlay required for the project thus first we calculate the Present Values for Investment B

Present value factors @ 12% for year 0, 1, 2, 3, 4 respectively.

1

0.893

0.797

0.712

0.636

Net Present Value = -9000 + (5000 * 0.893) + (4000 * 0.797) + (3000 * 0.712) + (1000 * 0.636)

NPV = $1425

Present value Index = NPV / Initial investment = 1425/9000 = 0.158

This can be interpreted as 1 + 0.158 = 1.158,

1 being the initial investment. You can also choose not to subtract the initial outlay when calculating NPV.

Hope that helps.

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3 years ago

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The primary concerns when first starting your business are:

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The primary concerns when first starting your business are: financing and planning

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2 years ago

Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and the number of times she goes d

padilas [110]

Answer:

See Explanation

Explanation:

Given

$U(S,T) = 2ST$

$M_U_S =2T$

$M_U_T=2S$

The following details are omitted from the question

$P_S= \$50$ --- Price of the Shoes

$P_T = \$50$ --- Spent on dancing

$B = \$500$ --- Budget on shoe and dancing

Solving (a): Her budget line

First, we determine her budget equation (B).

This is calculated by:

$B = P_S * S + P_T *T$

This gives:

$500 = 50 * S + 50 * T$

$500 = 50 S + 50 T$

Divide through by 50

$10 =S + T$

$S + T = 10$ --- The budget equation

<em>See attachment for the budget line equation</em>

Solving (a): Optimal Consumption Bundle Point

First, we determine the marginal rate of substitution (MRS) using:

$MRS = \frac{MU_s}{MU_t} = 1$

$MRS = \frac{2S}{2T} =1$

This implies that:

$\frac{2S}{2T} = 1$

Cross Multiply

$2S = 2T * 1$

$2S = 2T$

Divide by 2

$S = T$

Substitute T for S in the budget equation

$T + T= 10$

$2T = 10$

$T=5$

Recall that:

$S = T$

$S = 5$

So, the point if optimal consumption bundle is (5,5)

<em>See attachment for point R</em>

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3 years ago