Answer and Explanation:
The classification are as follows
(a) Payment of interest on notes payable = Operating activities as cash outflow
(b) Exchange of land for patent = Non cash investing activity as it does not involve cash transactions
(c) Sale of building at book value = Investing activities as cash inflow which is represented in a positive sign
(d) Payment of dividends. = Financing activities as cash outflow which is represented in a negative sign
(e) Depreciation = It is added to net income and shown in operating activities
(f) Receipt of dividends on investment in stock = Operating activities as cash inflow
(g) Receipt of interest on notes receivable = Operating activities as cash inflow
(h) Issuance of common stock = Financing activities as cash outflow
(i) Amortization of patent = Operating activities as cash inflow and added to the net income
(j) Issuance of bonds for land = Non cash investing activity as it does not involve cash transactions
Answer:
The answer is: A) Farmers will substitute the production of other agricultural goods? (like soybeans) with corn.
Explanation:
When the price of a certain product increases so steeply, new suppliers will enter the market to offer their products.
Since farmers can only produce one crop at the time in a certain lot, they will always tend to produce the crop that gives them the highest profit. In this case if corn becomes very expensive, it is reasonable to assume that more farmers will produce corn by substituting others crops (like soybean or wheat).
Answer:
C. $0.11
Explanation:
When there is excess capacity and there are no incremental fixed costs the break even transfer price would be the marginal cost of production. This is the least transfer price the Bells can sell to Rattle without making a loss. The most likely transfer price then would be $0.11 which allows the bells to cover their costs and also make 1 cent in profits. Option A, B and D would all be making losses where as Option E and F are two steep a price and may be unprofitable for rattle.
Hope that helps.
<span>Differentiation and low cost leadership strategies are referred to as generic business strategies due to the fact that they can be used in basically any organization, regardless of the industry.</span>
Answer:
$54.95 interest income
Explanation:
We look int othe legal tables to recognize income in this type of annuities considering the age of each participant
Table VI - Ordinary Joint Life and Last Survivor Annuities; Two Lives - Expected Return Multiples
multiplier at cross 75 / 70 : 18.8
we take the annual income of 700 x 12 = 8,400
and multiply by the 18.8 = 157,920
now we solve for part of capital and interest:
145,530/157,920 = 0.92154 = 92.15%
principal returns are 92.15% while interest the remaining 7.85%
700 x 7.85% interest = $54.95 interest income
