Listed below are transactions that might be reported as investing and/or financing activities on a statement of cash flows. Possible reporting classifications of those transactions are provided also.

Required:
Indicate the reporting classification of each transaction by entering the appropriate classification code. (The first item is provided as an example.)

Classifications
+ I Investing activity (cash inflow)
– I Investing activity (cash outflow)
+ F Financing activity (cash inflow)
– F Financing activity (cash outflow)
N Noncash investing and financing activity
X Not reported as an investing and/or a financing activity


Classifications Transactions
+I 1. Sale of land.
2. Issuance of common stock for cash.
3. Purchase of treasury stock.
4. Conversion of bonds payable to common stock.
5. Lease of equipment.
6. Sale of patent.
7. Acquisition of building for cash.
8. Issuance of common stock for land.
9. Collection of note receivable (principal amount).
10. Issuance of bonds.
11. Issuance of stock dividend.
12. Payment of property dividend.
13. Payment of cash dividends.
14. Issuance of short-term note payable for cash.
15. Issuance of long-term note payable for cash.
16. Purchase of marketable securities ("available for sale").
17. Payment of note payable.
18. Cash payment for five-year insurance policy.
19. Sale of equipment.
20. Issuance of note payable for equipment.
21. Acquisition of common stock of another corporation.
22. Repayment of long-term debt by issuing common stock.
23. Payment of semiannual interest on bonds payable.
24. Retirement of preferred stock.
25. Loan to another firm.
26. Sale of inventory to customers.
27. Purchase of marketable securities (cash equivalents).

Answers

Answer 1

Answer:

Investing Activities refer to cashflow activities that have to do with Fixed assets as well as the ownership of the securities of other companies.

Financing Activities refer to cashflow activities that have to do with how the company sources funds for the company so this includes Equity related activities and long term liabilities.

1. Sale of land.  +I

2. Issuance of common stock for cash.  +F

3. Purchase of treasury stock.  -F

4. Conversion of bonds payable to common stock.  N

5. Lease of equipment.  N

6. Sale of patent.  +I

7. Acquisition of building for cash.  -I

8. Issuance of common stock for land.  N

9. Collection of note receivable (principal amount).  +I

10. Issuance of bonds.  +F

11. Issuance of stock dividend.  X

12. Payment of property dividend.  X

13. Payment of cash dividends.  -F

14. Issuance of short-term note payable for cash.  +F

15. Issuance of long-term note payable for cash.  +F

16. Purchase of marketable securities ("available for sale").  -I

17. Payment of note payable.  -F

18. Cash payment for five-year insurance policy.  X

19. Sale of equipment.  +I

20. Issuance of note payable for equipment.  N

21. Acquisition of common stock of another corporation.  -I

22. Repayment of long-term debt by issuing common stock.  N

23. Payment of semiannual interest on bonds payable.  X

24. Retirement of preferred stock.  -F

25. Loan to another firm.  -I

26. Sale of inventory to customers.  X

27. Purchase of marketable securities (cash equivalents). X

Answer 2

Please see appropriate classification below.

+ I Investing activity (cash inflow)

1. Sale of land.  +I

6. Sale of patent.  +I

9. Collection of note receivable (principal amount).  +I

19. Sale of equipment.  +I

– I Investing activity (cash outflow)

7. Acquisition of building for cash.  -I

16. Purchase of marketable securities ("available for sale").  -I

21. Acquisition of common stock of another corporation.  -I

25. Loan to another firm.  -I

+ F Financing activity (cash inflow)

2. Issuance of common stock for cash.  +F

10. Issuance of bonds.  +F

14. Issuance of short-term note payable for cash.  +F

15. Issuance of long-term note payable for cash.  +F

– F Financing activity (cash outflow)

3. Purchase of treasury stock.  -F

13. Payment of cash dividends.  -F

17. Payment of note payable.  -F

24. Retirement of preferred stock.  -F

N Noncash investing and financing activity

4. Conversion of bonds payable to common stock.  N

5. Lease of equipment.  N

8. Issuance of common stock for land.  N

20. Issuance of note payable for equipment.  N

22. Repayment of long-term debt by issuing common stock.  N

X Not reported as an investing and/or a financing activity

11. Issuance of stock dividend.  X

12. Payment of property dividend.  X

18. Cash payment for five-year insurance policy.  X

23. Payment of semi-annual interest on bonds payable.  X

26. Sale of inventory to customers.  X

27. Purchase of marketable securities (cash equivalents). X

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Related Questions

In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2017 were as follows.
Budget Actual
Indirect materials $14,200 $13,700
Indirect labor 19,100 19,900
Utilities 11,400 12,100
Supervision 4,600 4,600
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.

Answers

Answer:

                            HANNON COMPANY

                           Assembly Department

           Manufacturing Overhead Cost Responsibility Report

                     For the Month Ended April 30,2017

Controllable Cost     Budget$   Actual$   Difference$   Remark  

Indirect materials       14,200       13,700         500         Favourable

Indirect Labor             19,100        19,900       -800         Unfavourable

Utilities                        11,400        12,100        -700         Unfavourable

Supervision                 4,600        4,600           0                 None

Total                            49,300       50,300    -1,000       Unfavourable

The smartest thing a firm involved in an oligopoly market could do is to cut their prices and capture more of the market share from their competitors.

a) We learned in class that the best move would be to raise prices.

b) We also learned that cutting prices on an elastic demand curve will be a smart way of getting more revenues.

c) Cutting prices is no gaurantee of success. Indeed if the firm does capture more market share and customers, then their costs will go up and it will be harder for them because they will have lower profit margins - if they can earn any profit at all.

d) Both A and C are correct.

Answers

Answer:

Correct Answer:

c) Cutting prices is no gaurantee of success. Indeed if the firm does capture more market share and customers, then their costs will go up and it will be harder for them because they will have lower profit margins - if they can earn any profit at all.

Explanation:

An oligopoly market is a market form wherein a market or industry is dominated by a small group of large sellers. A pure monopoly maximizes profits by producing that quantity where marginal revenue = marginal cost. however, it is much more difficult for an oligopoly to determine at what output it can maximize its profit.

The face value is $81,000, the stated rate is 10%, and the term of the bond is eight years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. What is the present value of the bond at the market rate?


Present value of $1:
4% 5% 6% 7% 8%
15 0.555 0.481 0.417 0.362 0.315
16 0.534 0.458 0.394 0.339 0.292
17 0.513 0.436 0.371 0.317 0.270
18 0.494 0.416 0.350 0.296 0.250
19 0.475 0.396 0.331 0.277 0.232

a. $91,561
b. $47,773
c. $43,673
d. $84,788

Answers

Answer:

The Present Value of the bond at the market rate = $90,438.36  

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  

Value of Bond = PV of interest + PV of RV  

The value of bond can be worked out as follows:  

Step 1  

PV of interest payments  

Semi annul interest payment  

= 10% × 81000 × 1/2 = 4050

Semi-annual yield = 8%/2= 4 % per six months  

Total period to maturity (in months)  

= (2 × 8) = 16 periods (Note the bond term is 8 yeras)  

PV of interest = 4050 × (1-1.04^(-16))/0.04 = 47,191.79

Step 2  

PV of Redemption Value  

Assuming a redemption value equals to the nominal value =

PV of RV = 81,000 × 1.04^-16 =  43,246.56  

Step 3 :Total Present Value

Total prent value =  43,246.56  + 47,191.79721  =  90,438.36

The Present Value of the bond at the market rate = $90,438.36  

Skyline Corp. will invest $210,000 in a project that will not begin to produce returns until the end of the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $46,000. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value if the cost of capital is 12 percent.

Answers

Answer:

$-2,801.13

Explanation:

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

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-210,000

Cash flow each year from year 1 to 2 = 0

Cash flow each year from year 3 to 12 = $46,000.

I = 12%

NPV = $-2,801.13

To find the NPV using a financial calculator:

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  

Webcom. Inc. had the following current assets and current liabilities at the end of two recent years:

Current Year (in millions) Previous Year (in millions)
Cash and cash equivalents $8,297 $4,067
Short-term investments, at cost 422 458
Accounts and notes receivable, net 7,041 6,912
Inventories 3,581 3,827
Prepaid expenses and other current assets 1,479 2,377
Short-term obligations 4,815 6,205
Accounts payable 12,774 11,949

Requried:
a. What is the Current Ratio for the current year?
b. What is the Current Ratio for the preceding year?
c. What is the Quick Ratio for the current year?
d. What is the Quick Ratio for the preceding year?
e. What is the Working Capital for the current year?
f. What is the Working Capital for the preceding year?

Answers

Answer:

a. Current Ratio for the current year = 1.18

b. Current Ratio for the preceding year = 0.97

c. Quick Ratio for the current year = 0.98

d. Quick Ratio for the preceding year = 0.76

e. Working Capital for the current year = $3,231

f. Working Capital for the preceding year = –$513

Explanation:

Based on the information provided in the question, we first state the following formula to be used before answering the question:

Current asset = Cash and cash equivalents + Short-term investments, at cost + Accounts and notes receivable, net + Inventories + Prepaid expenses and other current assets ................... (1)

Current liabilities = Short-term obligations + Accounts payable ................. (2)

Current ratio = Current assets / Current liabilities ............................ (3)

Quick Ratio = (Current assets - Inventory) / Current liabilities ............... (4)

Working capital = Current assets - Current Liabilities ........................... (5)

We now calculate the answers as follows:

a. What is the Current Ratio for the current year?

Using equation (1), we have:

Current asset for the current year (in millions) = $8,297 + $422 + $7,041 + $3,581 + $1,479 = $20,820

Using equation (2), we have:

Current liabilities for the current year (in millions) = $4,815 + $12,774 = $17,589

Using equation (3), we have:

Current ratio for the current year = $20,820 / $17,589 = 1.18

b. What is the Current Ratio for the preceding year?

Using equation (1), we have:

Current asset for the preceding year (in millions) = $4,067 + $458 + $6,912 + $3,827 + $2,377 = $17,641

Using equation (2), we have:

Current liabilities for the preceding year (in millions) = $6,205 + $11,949 = $18,154

Using equation (3), we have:

Current ratio for the preceding year = $17,641 / 18,154 = 0.97

c. What is the Quick Ratio for the current year?

Using equation (4) and calculations from part a, we have:

Quick Ratio for the current year = ($20,820 -  3,581) / $17,589 = 0.98

d. What is the Quick Ratio for the preceding year?

Using equation (4) and calculations from part b, we have:

Quick Ratio for the preceding year = ($17,641 - 3,827) / $18,154 = 0.76

e. What is the Working Capital for the current year?

Using equation (5) and calculations from part a, we have:

Working Capital for the current year = $20,820 -  $17,589 =$3,231

f. What is the Working Capital for the preceding year?

Using equation (5) and calculations from part b, we have:

Working Capital for the preceding year = $17,641 - $18,154 = –$513

Suppose Hyperpolis’s GDP increases by 15% and its inflation rate is 12%, while Superpolis’s GDP increases by 6% and its inflation rate is 3%. Assuming the population in both countries remained constant, which economy grew faster?

Answers

Answer: c) Both economies grew at the same rate

Explanation:

The faster growing economy would be the one that saw a greater increase in Real GDP than the other.

Real GDP growth = Nominal GDP growth - Inflation growth.

Hyperpolis Real GDP growth = 15% - 12%

Hyperpolis Real GDP growth = 3%

Superpolis Real GDP growth = 6% - 3%

Superpolis Real GDP growth = 3%

Both countries grew at the same rate of 3%.

"The technique which identifies the time period required to recover the cost of the investment is called the" ________________ method.

Answers

Answer:

Cash payback method

Explanation:

Cash payback technique is a method used by financial experts to analyse capital projects to see which ones they can invest in and which one to avoid.

This method is used to estimate the time it will take for a project to recoup the original cost of investment. It estimated when a business will payoff initial cost and start giving the investor profit.

Cash payback is easy to calculate

Cash payback = (Initial investment) ÷ (Estimated cash inflows each year)

Shorter cash payback is favourable as the investor gets back initial cost in a shorter period.

A company purchased property for a building site. The costs associated with the property were: What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

Answers

Answer:

The question is incomplete, below is a possible match of the complete question:

a company purchased property for a building site. the costs associated with the property were:

purchase price $175,00

real estate commisions $15,000

legal fees 800

expenses of clearing the land 2,000

expenses to remove old building 1,000

what portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

Answer:

cost allocated to land = $193,800

cost allocated to new building = $0

Explanation:

The expenses associated with the ost of land purchase are all the necessary expenses made in the purchase of the land and in getting the land ready for use. These include legal fees, cost of clearing the land, cost of removing old structures etc. Therefore cost allocated to land is calculated as follows:

cost of land = purchase price + real estate commissions + legal fees + expenses of clearing the land + expenses to remove old building.

cost of land = 175,000 + 15,000 + 800 + 2,000 + 1,000 = $193,800

∴ cost of land = $193,800

cost of new building = $0

There is no transaction associated directly with setting up the new building, all the costs were associated with the acquisition of the land, hence the cost os the new building is $0

The Closed Fund is a closed-end investment company with a portfolio currently worth $200 million. It has liabilities of $3 million and 5 million shares outstanding.Required:a. What is the NAV of the fund? b. If the fund sells for $36 per share, what is its premium or discount as a percent of NAV?

Answers

Answer and Explanation:

The computation is shown below:

a. NAV of the fund is

= (Portfolio amount - liabilities) ÷ (outstanding shares)

= ($200 - $3) ÷ ($5)

= $39.40

b. The premium or discount as a percent of NAV is

= (Price - net asset value) ÷ (net asset value)

= ($36 - $39.40) ÷ ($39.40)

= -0.086

This represents the discount of 8.6%

We applied the above formulas

Suspect Corp. issued a bond with a maturity of 30 years and a semiannual coupon rate of 6 percent 4 years ago. The bond currently sells for 95 percent of its face value. The book value of the debt issue is $45 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 15 years left to maturity; the book value of this issue is $50 million and the bonds sell for 54 percent of par. The company’s tax rate is 40 percent.Required:a. What is the company’s total book value of debt?b. What is the company’s total market value of debt? c. What is your best estimate of the aftertax cost of debt?

Answers

Answer and Explanation:

The computation of each point is shown below:-

But before that we need to do the following calculations

First Issue of Bonds:

Face Value = $45,000,000

Market Value = 95% × $45,000,000

= $42,750,000

Annual Coupon Rate = 6%

Semiannual Coupon Rate = 3%

= 3% × $45,000,000

= $1,350,000

Time to Maturity = 26 years

Semiannual Period to Maturity = 52

Let semiannual YTM be i%

$42,750,000 = $1,350,000 × PVIFA(i%, 52) + $45,000,000 × PVIF(i%, 52)

N = 52

PV = -42750000

PMT = 1350000

FV = 45000000

I = 3.20%

Semiannual YTM = 3.20%

Annual YTM = 2 × 3.20%

Annual YTM = 6.40%

Before-tax Cost of Debt = 6.40%

After-tax Cost of Debt = 6.40% × (1 - 0.40)

= 3.84%

Second Issue of Bonds:

Face Value = $50,000,000

Market Value = 54% × $50,000,000

= $27,000,000

Time to Maturity = 15 years

Semiannual Period to Maturity = 30

Let semiannual YTM be i%

$27,000,000 = $50,000,000 × PVIF(i%, 30)

Using a financial calculator:

N = 30

PV = -27000000

PMT = 0

FV = 50000000

I = 2.075%

Semiannual YTM = 2.075%

Annual YTM = 2 × 2.075%

= 4.15%

Before-tax Cost of Debt = 4.15%

After-tax Cost of Debt = 4.15% × (1 - 0.40)

= 2.49%

a. The total book value of debt is

Total Book Value of Debt = $45,000,000 + $50,000,000

= $95,000,000

b. The total market value of debt is

Total Market Value of Debt = $42,750,000 + $27,000,000

= $69,750,000

c. The estimate of the aftertax cost of debt is

Weight of first Issue of Debt is

= $42,750,000 ÷ $69,750,000

= 0.6129

Weight of second issue of Debt

= $27,000,000 ÷ $69,750,000

= 0.3871

So,  

Estimated After-tax Cost of Debt is

= 0.6129 × 3.84% + 0.3871 × 2.49%

= 3.32%

A stock has had returns of 12 percent, 19 percent, 21 percent, −12 percent, 26 percent, and −5 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

Average rate of return= 10.17 %

Geometric return = 9.23%

Explanation:

Geometric average return

This is compounded annual rate of return which is used to measure the performance of an asset over a certain number of years. It helps to measure the return generated by an investment taking into account the volatility .

Unlike the arithmetic average the geometric average gives an idea of the real rate taking into account of volatility

The formula below

Geometric Return =(1+r1) (1+r2) ...... (1+rn)^1/n

Geometric Average return =  

(1.12× 1.19× 1.21× 0.88× 1.26× 0.95)^(1/6) - 1 =0.09233168

Geometric return =0.0923 × 100= 9.23%

Geometric return = 9.23%

Average rate of return

The average return is the sum of the returns over the years dividend by the Numbers of returns

Average return = sum of return / No of returns

(12% + 19% + 21% + (12%) + 26% + (5%))/6 =10.17 %

Average rate of return= 10.17 %

Geometric return = 9.23%

Draiman Guitars is offering 110,000 shares of stock in an IPO by a general cash offer. The offer price is $39 per share and the underwriter's spread is 8 percent. The administrative costs are $350,000. What are the net proceeds to the company?

Answers

Answer:

$3,596,800

Explanation:

The computation of net proceeds to the company is shown below:-

Net proceeds = Number of shares of stock × Offer price × (1 - Underwriter spread percent) - Administrative cost

= 110,000 × $39 × (1- 0.08) - $350,000

= 110,000 × $39 × 0.92 - $350,000

= $3,946,800 - $350,000

= $3,596,800

So, for determining the net proceeds we simply applied the above formula.

A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.

Answers

Answer: fall; rise

Explanation:

The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.

The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.

Which of the following is not one of the benefits of outsourcing, whether domestically or internationally, value chain activities presently performed in-house? A. Preventing a company from hollowing out its technical know-how, competencies, or capabilities. B. Streamlining company operations in ways that improve organizational flexibility and cut the time it takes to get new products into the marketplace. C. Allowing a company to concentrate on its core business, leverage its key resources, and do even better what it already does best. D. Helping a company assemble diverse kinds of expertise easily and efficiently. E. Improving a company’s ability to innovate.

Answers

Answer: A. Preventing a company from hollowing out its technical know-how, competencies, or capabilities.

Explanation:

Outsourcing is the practice whereby organizations hire an outside party to help do certain functions wguvg could have been done by the workers in the organization but outsourced in order to focus on other production areas.

Out of the options given in the question, the one which is not a benefits of outsourcing, whether domestically or internationally, value chain activities presently performed in-house is that "preventing a company from hollowing out its technical know-how, competencies, or capabilities".

Preventing a company from hollowing out its technical know-how, competencies, or capabilities is not benefits of outsourcing, hence option A is correct.

Outsourcing is the process of hiring an outside party to assist with some duties that might have been performed by employees within the firm but were outsourced in order to focus on other areas of production.

"Preventing a company from hollowing out its technical know-how, competencies, or capabilities" is not a benefit of outsourcing, whether domestically or internationally, value chain tasks now conducted in-house.

Thus, the option A is correct.

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The maximum tax rate on estates and gifts: Question 7 options: is gradually increasing. has remained constant. is gradually declining. has increased sharply.

Answers

Is gradually declining.

g Once supply side effects are taken into​ account, tax cuts for labor income can change i. the supply of labor ii. potential GDP. iii. the growth rate of potential GDP.

Answers

Answer:

i, ii

Explanation:

a Tax is a compulsory sum levied by the government on income, goods or services. A tax cut would increase the supply of labour. As a result, the supply of labour would increase. As a result of the increase in labour, there would be an increase in potential GDP

Suppose that the risk-free rates in the United States and in the United Kingdom are 6% and 4%, respectively. The spot exchange rate between the dollar and the pound is $1.60/BP. What should the futures price of the pound for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs. Group of answer choices $1.63/BP $1.57/BP $1.60/BP $1.66/BP $1.70/BP

Answers

Answer:

$1.57/BP

Explanation:

Calculation for the futures price of the pound for a one-year contract.

Using this formula

Futures price =Spot exchange rate×(1+Risk-free rates in United States/1+Risk-free rates in United Kingdom

Let plug in the formula

Futures price=$1.60×(1.04/1.06)

Futures price= $1.60×(0.9811)

Futures price=$1.57/BP

Therefore the futures price of the pound for a one-year contract to prevent arbitrage opportunities will be $1.57/BP.

The infant industry argument says that Question 7 options: tariffs should be imposed to allow a new industry in a country to get established. imports should target new products from other countries to take advantage of the transmission of new ideas. dumping should be allowed in order to establish a presence of an industry that has previously not had a presence in another country. countries should produce and trade goods according to their comparative advantage.

Answers

Answer:

The infant industry argument says that Question 7 options:

tariffs should be imposed to allow a new industry in a country to get established.

Explanation:

The argument for the infant industry protectionism suggests that the imposition of tariffs on imports gives a new industry in the country the required breathing space it requires to develop, grow, and be established before it can face competitive forces from outside, which imports imply.  Since newly formed industries often do not command the economies of scale and learning experience that their competitors from other countries may have, therefore, they need to be singularly shaded from external competition until they have achieved similar economies of scale and learning curve.  But, can they attain any competitive edge without learning from competitors?

An investor has a $1,000,000 portfolio that is split evenly between "blue chip" stocks and Treasury securities. The current economic environment is characterized by low interest rates and flat stock prices - and this is expected to remain unchanged for a number of years. However, the residential and commercial real estate market is expected to be strong. The investor would like to diversify the portfolio and enhance returns without adding much additional risk. Which of the following investment purchase recommendations would help achieve this objective?A. Mortgage REITsB. Mortgage BondsC. Equity REITsD. Fannie Mae Pass-Through Certificates

Answers

Answer:

Correct Answer:

B. Mortgage Bonds

Explanation:

Since residential and commercial real estate market is expected to be strong for a number of years, the best investment would be a mortage bond.

A mortgage bond is a bond in which holders have a claim on the real estate assets put up as its collateral. The lender might sell a collection of mortgage bonds to an investor, who then collects the interest payments on each mortgage until it's paid off. If the mortgage owner defaults, the bondholder gets her house.

Why must corporate managers use multiple techniques of project evaluation? Which technique is most commonly used and why? Describe several ways you may be able to use the techniques above as you progress in your professional career.

Answers

Answer:

The most important technique for project evaluation is the net present value (NPV) which compares the present value of discounted cash flows against the  initial costs associated with the project. The other two most important techniques used are the payback period (either regular or discounted) and the internal rate of return (IRR).

Depending on the company's needs, sometimes one technique might be used instead of others. E.g. technological firms generally use the payback period because most of their projects have a very short life, 1 or 2 years. Other times, you might have to compare different projects and even if they are not mutually exclusive, no company can dispose of money freely. It only invests in certain projects that have a minimum required rate of return.

But the basic technique, the NPV, is the most relevant in a sense that no project with a negative NPV should be accepted.

A 65-year old widow that is in a low tax bracket and that has a low risk tolerance wishes to make an investment that will provide income. Which is the BEST recommendation

Answers

Answer:

Bank Certificate of Deposit (CD)

Explanation:

For the 65-year old widow in this scenario, the best recommendation would be a Bank Certificate of Deposit (CD). A traditional Bank CD is a time-bound deposit, in which you enter into an agreement to let the bank use your money for a fixed period of time, and in return, the bank pays you a higher interest rate than it would for a traditional savings account. Thus providing a good income with very low risk.

Gideon Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is

Answers

Answer and Explanation:

The Journal entry is shown below:-

Bad debts expense Dr, $2,000

          To Accounts receivable-Hopkins $2,000

(Being write off is recorded)

Here we debited the bad debt expenses as it increased the expenses and we credited the accounts receivable as it reduced the assets so that the proper posting could be done  

Suppose Real GDP is $700 billion and Natural Real GDP is $620 billion. To eliminate this ________________gap, Keynesian theory indicates that government should ______________________.

Answers

Answer: d. inflationary; decrease government purchases or increase taxes

Explanation:

Suppose Real GDP is $700 billion and Natural Real GDP is $620 billion. To eliminate this inflationary gap, Keynesian theory indicates that government should decrease government purchases or increase taxes.

The Real GDP is greater than the Natural real GDP which is the potential GDP. When that happens the Economy is said to be overheated and producing above its limits as Aggregate Demand is above Aggregate Supply.

To combat this the Government according to Keynes should embark on policy that will reduce economic activity. The Government can use Contractionary Fiscal Policy that will see it reduce its spending and/or increase taxes. Both of these will have the effect of reducing the amount of money in the economy left for both investment and consumption and cause a fall in the Aggregate Demand.

​If a beneficiary wants to make sure that the life insurance proceeds being paid out are not exhausted before he or she dies, the beneficiary would choose which of the following settlement options?
a. Fixed amount
b. Fixed income
c. Fixed time
d. Fixed period

Answers

Answer:

Option d. Fixed period

Explanation:

time is very essential. Anytime the policy owner specifies payment to be guaranteed for a specific period regardless of who is the beneficiary, policy owner or who receive the payment,is the fixed period settlement option.

Anything that occur  to annuity after the owner's death is dependent on the type of annuity and its payout plan.

A fixed-period,  is that which is for a certain period of time. the annuity guarantees payments to the annuitant for a set length of time. example is about  10, 15, or 20 years and case payments will continue to be paid to the beneficiary until the time given or  period is due or when  account’s balance reaches zero.

The strategic appeal of related diversification is that it Multiple Choice allows a firm to reap the competitive advantage benefits of skills transfer, lower costs (due to economies of scope), cross-business use of a powerful brand name, and/or cross-business collaboration in creating stronger competitive capabilities. is less capital intensive than unrelated diversification because related diversification emphasizes getting into cash cow businesses (as opposed to cash hog businesses). involves diversifying into industries having the same kinds of key success factors. is less risky than unrelated diversification because it avoids the acquisition of cash hog businesses. facilitates the achievement of greater economies of scale since the company only enters those businesses that serve the same types of buyer groups and/or buyer needs.

Answers

Answer: allows a firm to reap the competitive advantage benefits of skills transfer, lower costs (due to economies of scope), cross-business use of a powerful brand name, and/or cross-business collaboration in creating stronger competitive capabilities.

Explanation:

Related diversification is when an organization expands its business by producing products which are similar to what it currently produces. In related diversification, there's identical product lines. An example is a computer manufacturer producing calculators.

Organizations that go into related diversification enjoys lower costs and competitive advantage over their counterparts.

The "TAO" approach to digital marketing analytics stands for.

Answers

Answer:

The "TAO" approach to digital marketing stands for the way through which digital marketers can make themselves heard in the digital world in the midst of all the digital noise. He believed that, apprenticeships is the best way.

This offers the person a great way to gain both knowledge and experience while getting paid at the same time. For example,there are more and more apprenticeship bodies someone can engage with like The Juice Academy and Arch Apprentices.

Explanation:

Suppose the 2020 adidas financial statements contain the following selected data (in millions). Current assets $4,575 Interest expense $200 Total assets 9,000 Income taxes 178 Current liabilities 3,050 Net income 236 Total liabilities 5,670 Cash 800 Compute the following values. (a) Working capital. $ millions (b) Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) :1 (c) Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.) % (d) Times interest earned.

Answers

Answer:

a. $1,525 million

b. 1.50 times

c. 29 %

Explanation:

Working capital = Current Assets - Current Liabilities

                          = $4,575 million - $3,050 million

                          = $1,525 million

Current Ratio = Current Assets ÷ Current Liabilities

                       = $4,575 million ÷ $3,050 million

                       = 1.50 times

Debt to Asset ratio = Interest bearing  Debt / Total Assets × 100

                               = ($ 5,670 - $3,050) / $9,000 × 100

                               = 29 %

A list of financial statement items for Splish Brothers Inc. includes the following: accounts receivable $30,100, prepaid insurance $5,590, cash $22,360, supplies $8,170, and debt investments (short-term) $17,630.
Prepare the current assets section of the balance sheet listing the items in the proper sequence.
(List current assets in order of liquidity.)

Answers

Answer: Please find answers below

Explanation:

The Order of liquidity shows how assets of a company are presented in a balance sheet in an order that shows the faster the  time taken for an asset to be converted to Cash.  

The order in which Current accounts are represented as as follows

--- Cash (including currency, checking accounts, and petty cash),

----Short-term investments ,

----Accounts receivable,

---- Inventory,

-----Supplies,

----- Pre-paid expenses.

Current Assets of Splish Brothers Inc. in order of liquidity

Current Assets                           Amount

Cash                                             $22,360

Debt investments(short term)     $17,630

Accounts receivables                      $30,100

Supplies                                              $8,170

Prepaid Insurance                              $5,590

Total Current Accounts                   $83,850

Oligopoly firms will seldom change prices but if one firm increases their price, others may follow if costs have ____________ .

Answers

Answer:

decreased

Explanation:

if firms have decreased then it would be likely to follow other firms to increase popularity

Oligopoly firms will seldom change prices but if one firm increases its price, others may follow if costs have Decreased.

What is Oligopoly?

A market structure known as an oligopoly has a limited number of enterprises, none of which can prevent the others from having a large impact. The market share of the major companies is calculated using the concentration ratio.

A market with a monopoly has only one producer, a duopoly has two businesses, and an oligopoly has three or more businesses. The maximum number of firms in an oligopoly is unknown, but it must be low enough so that each firm's actions have a significant impact on the others.

In the past, oligopolies have existed in the steel industry, the oil industry, the railroad industry, the tire industry, grocery store chains, and the wireless industry. An oligopoly can prevent new competitors from entering the market, stifle innovation, and raise prices, all of which are detrimental to consumers.

To learn more about Oligopoly follow the link.

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Denver Company, a calendar year corporation, had the following actual income before income tax expense and estimated effective annual income tax rates for the first two quarters in year x8: quarter income before tax estimated tax rate first $100k 30% second $140k 24% Denver's income tax expense in its interim income statement for the second quarter should be:

Answers

Answer:

Denver Company

Income Tax Expense for the second quarter:

Pre-tax quarter income = $140,000

Estimated tax rate = 24%

Tax Expense = $140,000 x 24%

= $33,600

Explanation:

a) Data:

Quarter    income before tax        estimated tax rate

first                 $100k                          30%

second           $140k                          24%

b) Denver's quarter second income tax expense is the product of the pretax income for the second quarter and the estimated income tax rate for the quarter.  The resulting calculation shows the estimated income tax expense that has to be settled by Denver.  If it is not settled in the quarter second period, it has to be carried forward to the next quarter as a liability under the heading, Income Tax Payable.

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