Answer and Explanation:
The categorization is shown below:
1 Purchase of a patent = Investing activities as it represents in a negative sign because it is a cash outflow
2 Depreciation expense Operating activities as it is added to the net income
3 Decrease in accounts receivable = Operating activities as it is added to the change in adjustments column
4 Issuance of a note payable = Financing activities as it represents in a a positive sign because it is a cash inflow
5 Increase in inventory = Operating activities as it is deducted from the change in adjustments column
6 Collection of note receivable = Investing activities as it represents in a positive sign because it is a cash inflow
7 Purchase of equipment = Investing activities as it represents in a negative sign because it is a cash outflow
8 Exchange of long term assets = Separate non cash activities note as it does not involved any cash transactions
9 Decrease in accounts payable = Operating activities as it is deducted from the change in adjustments column
10 Payments of dividend = Financing activities as it represents in a negative sign because it is a cash outflow
Answer:
Assessing the allowance for uncollectible accounts for reasonableness.
Explanation:
Assessing the allowance for uncollectible accounts for reasonableness give the most assurance concerning the valuation assertion about accounts receivable as The term uncollectible accounts receivable is used to describe the portion of credit sales in accounts receivable the company does not expect to collect from a customer.
Uncollectible accounts is used in the valuation of accounts receivable, which appears on a company's balance sheet.
Answer:
Beta is 1.8
Explanation:
CAPM or capital asset pricing model is used to compute expected return on stock by establishing relationship between expected returns and systematic risk (also called beta).
Given:
Return on mutual fund = 14%
Risk free rate (Rf) = 5%
Market return (Rm) = 10%
Risk premium = Rm - Rf
= 10% - 5%
= 5%
CAPM formula:
Returns = Rf + β(Rp)
14% = 5% + β(5%)
β = 9 / 5
β = 1.8
Beta of mutual fund is 1.8
Answer:
$8,119,048
Explanation:
Given that,
Amount of scholarships = $170,500 per year
Trust fund earns an annual rate of return = 2.1 percent
Let x be the amount contribute to the fund and assuming that only income is distributed,
2.1% of x = Amount of scholarships
0.021x = $170,500
x = $170,500 ÷ 0.021
= $8,119,048
Therefore, the amount of money that is contributed by the George Jefferson to the trust is $8,119,048.