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3 years ago

How would the issuance of a mortgage note in exchange for a building be reported on the statement of cash flows?

Business

1 answer:

Sergeu [11.5K]3 years ago

8 0

Answer:

A. Noncash financing and Investing activity

Explanation:

The Cash Flow Statement records all Cash related transactions and used to determine the movement in the Balance of Cash and Cash Equivalent. When mortgage note is issued in exchange of a building, this is simply an Exchange of Assets without the movement of cash. Non - Cash activities are not shown in the Cash Flow Statement.

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When a business earns more money than it spends, the entrepreneur is paid from the

musickatia [10]

I believe it is the Owner's Salary.

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3 years ago

As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking in

morpeh [17]

Answer with its Explanation:

The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.

As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.

By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.

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4 years ago

Projects A and B both require an initial investment of $100,000. Project A produces $200,000 in cash flows in the subsequent 5 y

Marysya12 [62]

Answer:

d. The NPV of project A will be more sensitive to changes in the cost of capital compared to the NPV of project B

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The sensitivity to cost of capital can he determined by calculating the npv using different cost of capitals.

Net present value can be calculated using a financial calculator.

For the first project:

Cash flow in year zero = -100,000

Cash flow each year from year one to five = 200,000

Npv when I is 8% = 698,542.01

Npv when I is 10% = 657,157.35

NPV when I is 12% = 620,955.2

For the second project:

Cash flow in year zero = -100,000

Cash flow in year one = 400,000

Cash flow in year two = 300,000

Cash flow in year three = 200,000

Cash flow in year four and five = 50,000

Npv when I is 8% = 757,119.12

Npv when I is 10% = 727,029.95

NPV when I is 12% = 698,804.32

The percentage change in the npvs of project A is greater than the percentage change in npv of project b when different cost of capitals are used. Thus, project A is more sensitive to cost of capital.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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4 years ago

This graph shows that there was an increase in the unemployment rate in the U.S. in the years between 1990 and 1993. This increa

OverLord2011 [107]

Answer:

Option A (an economic recession in the U.S) would be the correct choice.

Explanation:

A recession seems to be an economic and financial term of knowledge and skills to a substantial reduction in the total financial outlook of the specified location.
Usually, as expressed by GDP throughout combination with monthly metrics such as an uptick in unemployment, this one has been recognized as two successive quarters of economic downturn.

Some other three options aren't connected to the example described. But the response above is the right one.

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3 years ago

Alyona recently purchased a car. In her first auto loan statement, she was surprised to find a letter for a life insurance compa

Ad libitum [116K]

Answer:

Credit life Insurance

Explanation:

The scenario describes Credit life insurance

This is a form of insurance policy that that is designed to pay off the balance on a policy holder's outstanding loan in case of death. It is designed for the protection of lender and heirs who are co signers from loss in case of the death of the borrower.

The insurance is liable to the balance on the loan as at the time of the death of the borrower.

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3 years ago