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2 years ago

Capital plays vital role for running a business .justify

Business

1 answer:

posledela2 years ago

6 0

Answer:

yes it does

Explanation:

It's because without capital you can't even start the business, because you wouldn't have the machines or computers and stuff that is needed for your business. So it' used to pay ongoing production of goods and services to make profit form your business

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The following information was taken from the accounting records of Gorky Corporation for the year ended December 31, Year 1: Cas

Romashka-Z-Leto [24]

Answer:

Cash flow generated from financing activities: 5,200,000

Explanation:

Financing activities are the cash outflow and inflow from the company's debt and equity. Take and repayment of debt, interest on debt and dividend yield will be included in this section:

Cash received from issuance of notes payable 8,000,000

Dividends paid on Gorky common stock (800,000)

Repayment of notes payable <u> (4,000,000) </u>

Cash flow generated from financing activities: 5,200,000

The machinery and planyt building are not financing activities. So we ignore them.

8 0

3 years ago

A company has a net cash inflow from operating activities of $793,000, a net cash outflow of $58,000 from investing activities a

IRINA_888 [86]

Answer:

Incorrect Statement about the Statement of Cash Flows:

c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.

Explanation:

Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.

Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections. The operating activities section show the cash flows from the normal business of the enterprise. The investing activities section shows the acquisition and disposal of investments made by the company in cash. While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.

4 0

3 years ago

Michael had a severe hearing impairment and worked as the supervisor of a fast food restaurant. Michael’s manager and the human

KiRa [710]

Answer: The correct answer is "C) giving up rather than standing up to the boss as required by law.".

Explanation: This is a situation of: <u>giving up rather than standing up to the boss as required by law.</u>

Michael should have sued his boss before the law so that he could instead be compensated for the bad treatment and discrimination and also collect unemployment compensation in the event that the employment relationship is terminated.

6 0

3 years ago

Comparative balance sheets for Pina Colada Corp. are presented as follows. Pina Colada Corp. Comparative Balance Sheets December

DerKrebs [107]

Answer and Explanation:

The Preparation of cash flows for 2020 using the indirect method is shown below:-

Cash flow from Operating Activities

Net income $134,100

Add: Adjustments to reconcile net income

Add; Depreciation on property, plant and equipment $25,000 ($66,250 - $41,250)

Less: Increase in Accounts receivable ($8,300) ($84,350 - $76,050)

Add: Decrease in Inventory $7,750 ($180,500 - $188,250)

Less: Decrease in Accounts payable ($12,950) ($33,400 - $46,350)

Net cash provided by Operating Activities $145,600

Cash flow from Investing Activities

Add:Sale of Land $24,850

Less: Purchase of equipment ($49,800) ($249,600 - $199,800)

Net cash used in Investing Activities ($24,950)

Cash flow from Financing Activities

Issue of common stock $48,900

Less: Redemption of bonds ($50,700)

Less: Dividend paid ($68,300)

Net cash used in Financing Activities ($70,100)

Net increase in Cash and Cash Equivalents $50,550

Cash in the beginning of the period $22,400

Ending cash balance for the year $72,950

7 0

3 years ago

For 2012 Fielder Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 12,000. There wer

jonny [76]

Answer:

$2.50

Explanation:

The Earnings Per Share of a company is determined by using the formula:

EPS= (Net Income of the Company - Dividend to Preferred Shareholders) ÷ Average Outstanding Shares of the Company

Since there is no dividend to preferred shareholders

EPS= Net Income of the Company - ÷ Average Outstanding Shares of the Company

=30000 ÷ 12000

=$2.50

5 0

3 years ago

Capital plays vital role for running a business .justify ​

Capital plays vital role for running a business .justify