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Vanyuwa [196]
3 years ago
8

Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended Decembe

r 31, 2017. For each item, state how it should be shown in the statement of cash flows for 2017. (a) Issued bonds for $200,000 cash. (b) Purchased equipment for $150,000 cash. (c) Sold land costing $20,000 for $20,000 cash. (d) Declared and paid a $50,000 cash dividend.
Business
1 answer:
Vladimir79 [104]3 years ago
6 0

Answer:

a. Issued bonds for $200,000 cash ⇒<u> Cash inflow from Financing Activities. </u>

Financing activities refer to those that bring in capital to the company. This capital comes in the form of equity and long term liabilities like bonds. Money coming in from bonds will therefore be an inflow here.

b. Purchased equipment for $150,000 cash. ⇒ <u>Cash Outflow from Investing Activities </u>

Investing activities have to do with the fixed assets of the company as well as investments into the securities of other companies. Money is leaving the company to purchase the fixed asset here -equipment - so this is an outflow.

c.Sold land costing $20,000 for $20,000 cash. ⇒  <u>Cash inflow from Investing Activities.</u>

As already stated, Investing activities relate to fixed assets. Selling a fixed asset such as land will therefore bring in cash from investing activities.

d. Declared and paid a $50,000 cash dividend⇒ <u>Cash Outflow from Financing activities</u>

As financing activities relate to equity, dividends will be a cash outflow from here because it is cash that is leaving the company to go to equity holders.

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Answer:

The options are given below:

A. clustering

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C. positioning

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the correct option is A.

Explanation:

Clustering, or cluster analysis, is a process which refers to the organization of objects or items into groups who have members with similar traits with respect to a particular criterion. In other words, a cluster refers to a collection of similar objects which are different from the objects of other clusters.

In the scenario presented above, we can see that different groups of customers exist, who have different reasons for purchasing the company's brand. These reasons are different from one group to another group, this is why a cluster analysis is the best option.

7 0
3 years ago
balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 sh
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Answer:

The price per share should be $22.5

Explanation:

The price earnings multiple or P/E tells us how much price the investors are willing to pay for $1 earnings of the company.

We first need to calculate the earnings per share of the company.

Earnings per share = Net Income / Number of outstanding common shares

Earnings per share = 1500000 / 1000000  =  $1.5 per share

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15 = Price per share / 1.5

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6 0
3 years ago
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The net income reported on the income statement for the current year was $240,000. Depreciation was $50,000. Accounts receivable
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Answer:

a. $337,000

Explanation:

Calculation to determine How much cash was provided by operating activities

Using this formula

Cash provided by Operating activities=Net income+Depreciation+Account receivable+Inventories decreased -Prepaid expenses+Accounts payable increased

Let plug in the formula

Cash provided by Operating activities=$240,000 + $50,000 + $10,000 + $30,000 - $1,000 + $8,000

Cash provided by Operating activities=$337,000

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on july 1, the knit shop paid $9,000 to townsend realty for 6 months’ rent beginning july 1. prepaid rent was debited for the fu
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debit Rent Expense, $1,500; credit Prepaid Rent, $1,500.

Explanation:

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Will feckless unexpectedly inherits $10,000 from a rich uncle. he is observed to consume fewer hamburgers than he used to.
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