Answers
Answer: b. reissuing treasury stock
Explanation:
Investing Activities in the Cashflow Statement refer to transactions that have to do with the buying and selling of Capital Goods such as Fixed Assets. It also refers to investments in other company bonds and stock.
Financing has to do with how the firm finances it's operations. These include long term debt and stock related transactions.
When these transactions are non-cash, it means quite rightly that no cash was exchanged and instead something else for exchanged instead of cash. For example, A non-cash Investing and Financing activity would be the purchase of long-term assets by issuing bonds.
In this question, option B being the reissuance of Treasury Stock is not a non-cash transaction. Treasury Stock is the company's own stock that it required from the market. By reissuing it, they will be doing so with cash involved. That is, people will buy the reissued shares and pay cash for them thus making it a Cash Financing Activity.
Related Questions
6. A system anticipates that spending $300,000 on an advertising campaign will increase bed days by 650. The marketing department anticipates that each additional bed day will yield $2,100 in additional revenue and will increase costs by $1,700. The campaign a. will reduce profits by $40,000. b. will increase profits by $40,000. c. will increase profits by $90,000. d. will increase profits by $210,000
Josh and Alex work as design engineers creating high-end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please sort their various costs, listed below, into the correct category.a. Implicit Costs b. Not a Cost c. Explicit Costs1. The garage space used for baking that can no longer be rented to a college student2. Advertising space taken out on a social media network3. Supplies like sugar, butter, and baking trays4. The money they pay their neighbor's six year old son to deliver cupcakes to their customers5. The salary Alex earned in his previous job designing light fixtures
Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in the next period. Management also predicts that the contribution margin per unit will be $63. (1) Compute the total expected dollar sales for next period. Contribution margin Pretax income (2) Compute the number of units expected to be sold next period. Choose Numerator: / Choose Denominator: = Units / = Units
If the potential customers belong to the same segment, display comparable characteristics, and choose the same product qualities consistent with their segment, then which condition for the ideal market segment approach should be used
Answers
Answer:
Most of the question is missing, so I looked for a similar one and found the attached image.
CPI = (current year price × base year quantity) / (base year price × Base year quantity)
CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150
CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75
CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140
CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82
Final answer:
To calculate the CPI in 2008 using 2004 as the base year, compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Multiply the price of each good by the quantity consumed to calculate the cost of the basket in each year. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.
Explanation:
The CPI (Consumer Price Index) measures the change in the prices of a fixed basket of goods and services over time. To calculate the CPI in 2008 using 2004 as the base year, you need to compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Here's how you can calculate the CPI:
- Determine the price of each good in 2008 and 2004.
- Calculate the cost of the basket in 2008 by multiplying the price of each good by the quantity consumed.
- Calculate the cost of the basket in 2004 by multiplying the price of each good by the quantity consumed.
- Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.
For example, if the cost of the basket in 2008 is $100 and the cost of the basket in 2004 is $80, the CPI would be (100/80) * 100 = 125.
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a. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio?
b. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?
c. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?
d. Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?
Answers
Answer:
a. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio?
the expected value of our portfolio = ($120,000 x 50%) + ($300,000 x 50%) = $210,000
the current market price of the investment = $210,000 / 1.13 = $185,840.71
discount rate = 5% + 8% = 13%
b. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?
13%, it should be equal to the discount rate
c. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?
the current market price of the investment = $210,000 / 1.21 = $175,000
discount rate = 5% + 15% = 20%
d. Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?
the higher the risk premium, the lower the market price of the portfolio
Answers
An example of a secured credit is home mortgage or a car loan.
Credit refers to the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
When any loan is secured, the lender has established a lien against an asset that belongs to the borrower. With mortgages and car loans, the house or car can be seized and liquidated by the lender in the event of default.
Therefore, one example of a secured credit is home mortgage or a car loan.
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Answer: C: Mortgage
Explanation:
A common example of a secured line of credit is a home mortgage or a car loan. When any loan is secured, the lender has established a lien against an asset that belongs to the borrower. With mortgages and car loans, the house or car can be seized and liquidated by the lender in the event of default.
Answers
Answer:
Option (a) is correct.
Explanation:
Contribution margin per marketing plan = Sales - Variable cost
= $3,000 - $2,000
= $1,000
A.
(1)
Break even in marketing plan = 400
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 400 × 3,000
= 1,200,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 1,200,000
= 300,000
= 20%
B.
(1) Contribution margin per marketing plan = Sales - Variable cost
= $4,000 - $2,000
= $2,000
Break even in marketing plan = 200
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 200 × 4,000
= 800,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 800,000
= 700,000
= 47%
Therefore, option (a) would achieve the margin of safety ratio more than 45%.
Answers
Answer:
$202,500
Explanation:
Working capital is the difference between current assets and current liabilities. Therefore, the formula for calculating working capital is as below.
Working capital = current assets- current liabilities
in this case
current assets =
cash $200,000
account receivable $75,000
prepaid expenses of $12,500,
Total current assets = $287,500
current liabilities
accounts payable of $50,000
other current liabilities of $35,000
Total current liabilities = $85,000
working capital = $287,500 - $85,000
=$202,500
b. With the help of a friend (who majored in accounting), you determine that all of the goods sold during January cost $48,000 to purchase.
c. During the month, according to the checkbook, you paid $42,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $1,000 monthly utilities for January on the store and fixtures.
Required:
On the basis of the data given (disregard income taxes), what was the amount of net income for January?. (Hint: A convenient form to use has the following major side captions: Revenue from Sales, Expenses, and the difference—Net Income.)
Answers
Answer:
The amount of net income for January was $24,100
Explanation:
Revenues from sales $115,100 (for this analysis is not important if the sales were in cash or on credit)
-
Cost of goods sold $48,000
------------------------------------
Gross profit $67,100
-
Salaries, rent, supplies, advertising, other expenses and monthly utilities (it is not important for this analysis if all the exenses were paid) -$43,000
-----------------------------------
Net income $24,100
Final answer:
The net income for Campus Connection for the month of January is calculated by subtracting the total expenses ($91,000) from the total sales ($115,100), which equals $24,100.
Explanation:
To calculate the net income for January for Campus Connection, we need to consider the revenues and expenses for the month.
First, let's calculate the total revenues. Cash sales amount to $112,000 and the credit sales to $3,100. Therefore, the total revenues for the month of January equal $115,100.
Next, we calculate the total expenses. We know from the data given that the cost of goods sold equals $48,000. Also, the other expenses such as salaries, rents, supplies, and advertising total to $42,000. However, the utilities for January have not yet been paid. This adds an additional $1,000 to the expenses. So the total expenses for January are $48,000 (cost of goods sold) + $42,000 (other expenses) + $1,000 (unpaid utilities) = $91,000.
The net income is calculated by subtracting the total expenses from total revenues; thus $115,100 (sales) - $91,000 (expenses) = $24,100. Therefore, the net income for Campus Connection for January is $24,100.
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