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Katarina [22]
2 years ago
5

Suppose Zenon Co. issued a long-term bond and received $250,000 cash from the issuance during 2015. The company also issued 12,0

00 shares of common stock for $260,000. At the end of the year, Zenon paid $165,000 for the dividend declared last year. What would be the net impact of these transactions on Zenon's 2015 statement of cash flows under US GAAP?
a) $510,000 would be shown as an increase in the Financing Section and the $165,000 would be shown as a decrease in the Operating Section.

b) $260,000 would be shown as an increase in the Financing Section and the $250,000 would be shown as an increase in the Investing Section.

c) $345,000 would be shown as an increase in the Financing Section.

d) $260,000 would be shown as an increase in the Financing Section, the $250,000 would be shown as an increase in the Investing Section, and the $165,000 would be shown as a decrease in the Operating Section.
Business
1 answer:
Vesna [10]2 years ago
5 0

Answer:

Option (c) is correct.

Explanation:

The net impact in Cash flow statement (Cash flow financial activities  will be:

= Amount received from issuing bonds + Amount received from issuing common stock + Paid for dividend

= $250,000 + $260,000 + $165,000

= $345,000

Note:

Long-term bond & issue of common stock are Cash inflow from financial operations.

Dividend paid is regarded as Cash outflow from financial operations.

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During Year 6, Kincaid, Inc. earned $85,000 of cash revenue. The company incurs all operating expenses on account. The Year 6 be
igomit [66]

Answer:

a.  Amount of operating expenses recognized during the accounting period = Account payable closing balance + Cash payment - Opening balance

= $25,000 + $40,000 - $2,000

= $63,000

b.  Net income earned during the accounting period = Cash revenue - Amount of operating expenses recognized

=  $85,000 - $63,000

= $22,000

C.  Amount of cash flow from operating activities =  Net income + Increase in current liability  

= $22,000 + ($25,000 - $2,000)

= $45,000

6 0
1 year ago
Which of the following statements is true regarding self-managed work teams?A) Self-managed work teams typically consist of fort
Maslowich

Answer: E

Explanation:Self-managed work teams represent an approach to organizational design that goes beyond quality circles or ad hoc problem-solving teams. These teams are natural work groups that work together to perform a function or produce a product or service. They not only do the work but also take on the management of that work functions formerly performed by supervisors and managers. This allows managers to teach, coach, develop and facilitate rather than simply direct and control. In a self Self-managed work teams there’s decrease position take on supervision .

4 0
2 years ago
Blacken Company manufactures motorcycles. The company's management accountant wants to calculate the fixed and variable costs as
Alex

Answer:

fixed cost = 11.026,6

Explanation:

we will use the High-Low method to sovle for variable and fixed component of utilities:

We subtract the high form the low

\left[\begin{array}{ccc}High&2710&34712\\Low&2200&30255\\Diference&510&4457\\\end{array}\right]

510 hours generates 4,457 cost in utilities.

so variable cost:

4,457 / 210 = 8.74

Then we solve for fixed cost:

total cost = variable cost x Q + fixed cost

34,712 = 8.74(2,710) + fixed cost

fixed cost = 11.026,6

6 0
2 years ago
​Greystone Group is looking to purchase Heartland Hotels, Inc. Greystone plans to use $5 million in cash and finance $20 million
kramer

Answer:

Leverage buyout

Explanation:

Leverage buyout refers to the acquisition of another company using debt as the main source of financing the deal. The acquiring company borrows from various sources and will often use the assets of the acquired company as collateral. In leverage buyout, the acquiring entity borrows up to 80 percent or more and finances the balance with its equity.

The use of debt enhances the rate of return of the acquiring firm. Greystone Group is using 5 million of its funds and borrowing 20 million. The debts represent 80 percent of the cost of acquisition. The acquiring entity can achieve a higher rate of return by using as little of its funds as possible.

5 0
2 years ago
b) IKEA is also very "IKEA-centric." For example, the IKEA store itself will be laid out as a maze that requires customers to wa
Musya8 [376]

Answer:

Explanation:

As long as IKEA is able to deliver value and differentiation via quality, cost, and new designs, then the IKEA way of putting people through the different departments before making checkouts, will not spell trouble.

Furthermore, the movement of people through the different departments will give consumers, exposure to other new products available and it will make them aware of the quality present in other goods. As a result, the consumer and the company will benefit from increased sales.

Here, IKEA has to assure that quality is to be maintained and movement through the different departments should not be high traffic and it will be convenient for people to easily move through to remain interested in visiting the IKEA stores on a regular basis.  

Thus, it will be the right step to build a sustainable business model by IKEA.

8 0
2 years ago
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