The Financials section of the Business Model Template consists of three boxes. The boxes are titled _______

In 20X5, Elm Corp. bought 10,000 shares of Oil Corp. at a cost of $20,000. On January 15, 20X6, Elm declared a property dividend

xxMikexx [17]

Answer:

c) $25,000

Explanation:

A property dividend should be recorded in retained earnings at the property's market value at date of declaration.

The date of declaration is the date on which the firm has made the commitment to pay the dividend. The market value on this date is the value that was considered when the board made the decision to distribute a property dividend and thus is the appropriate measure of the sacrifice to the firm.

In application to the scenario, the property dividend will be recorded in retained earnings at the market value at the date of declaration which is Jan 15 NOT on the day it is payable.

Hence, retained earnings will reduce by $25,000

In 20X5, Elm Corp. bought 10,000 shares of Oil Corp. at a cost of $20,000. On January 15, 20X6, Elm declared a property dividend of the Oil stock to shareholders of record on February 1, 20X6, payable on February 15, 20X6. During 20X6, the Oil stock had the following market values:

January 15

$25,000

February 1

26,000

February 15

24,000

6 0

3 years ago

Creative Sound Systems sold investments, land, and its own common stock for $31.0 million, $15.1 million, and $40.2 million, res

KatRina [158]

Answer:

Creative Sound Systems

Net cash flows from investing activities:

Cash inflow from sale of investments $31 million

Cash inflow from sale of land $15.1 million

Cash outflow from purchase of equipment ($25.1 million)

Cash outflow from purchase of patent ($12.1 million)

Net cash flows provided by investing activities $8.9 million

Creative Sound Systems

Net cash flows from financing activities:

Cash inflow from issuing common stocks $40.2 million

Cash outflow from purchase treasury stock ($21.1 million)

Net cash flows provided by financing activities $19.1 million

6 0

2 years ago

A newspaper featuring a section on world news( essay) HELP PLZZZZZZZZ

ivolga24 [154]

You can do about the schools having flees and how they are moving to to alot of different schools and busses and how the bugs are getting bigger if it's base on the news

4 0

3 years ago

A local county commissioner is under fire for utilizing an out-of-county florist owned by her daughter to purchase flower arrang

Nastasia [14]

A conflict of interest

5 0

1 year ago

Below is the trial balance for Sugar Almonds Ltd as at 31st December 2020

valentina_108 [34]

Answer:

Net income = $31,130

Total Assets = Owner's Equity and Liabilities = $104,230

Explanation:

The the Income Statement of Profit or Loss and the Statement of Financial Position can be prepared as follows:

Sugar Almonds Ltd

Income Statement of Profit or Loss

For the Year Ended 31st December 2020

Particulars $ $

Sales Revenue 93,700

Cost of sales:

Opening inventory 12,000

Purchases 49,000

Closing inventory - income statement (24,350)

Cost of sales (36,650)

Gross profit 57,050

Operating expenses:

Administrative Expenses (850)

Rent paid (2,000)

Telephone (900)

Wages (21,650)

Travel expenses (330)

Total operating expenses (25,730)

Interest income (expense):

Interest paid (190)

Net income  31,130 

Sugar Almonds Ltd

The Statement of Financial Position

As at 31st December 2020

Particulars $ $

Fixed Assets

Premises at cost 70,000

Vehicles at cost 5,800

Total Fixed Assets 75,800

Current Assets

Cash 630

Bank 2,100

Closing inventory - Statmt of fin positn 24,350

Trade Receivables 1,350

Total Current Assets 28,430

Total Assets  104,230 

Owner's Equity

Capital 72,000

Drawings (6,450)

Net income 31,130

Total Owner's Equity 96,680

Current Liabilities

Trade Payables 6,400

VAT 1,150

Total Current Liabilities 7,550

Owner's Equity and Liabilities  104,230 

6 0

2 years ago

The Financials section of the Business Model Template consists of three boxes. The boxes are titled ________.