Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- do not provide solution in image format.arrow_forward25.Gingerbread Corp hired a new intern for the summer. The intern was assigned the job of preparing the year-end statement of cash flow but was having some trouble trying to determine where to classify the following transactions. TRANSACTION Cash Flow Cash payment of dividends to common stockholders 30,000 Cash payment for purchase of land 468,000 Cash proceeds from sale of equipment 15,000 Cash proceeds from issuing Gingerbread common stock 45,000 Cash payments on long-term note payable 175,000 Cash payments to purchase stock in another company 51,000 Determine Net cash from financing. Be careful to analyze if it is a cash outflow (negative) or cash inflow (positive). If the cash flow is negative put the value in parenthesis. Example: (400,000). No dollar signs. Net cash from financing?arrow_forwardTB EX Gu. 4-185 During the current year, a company provides services... 6. During the curremt year, a company provides services on account for $110,000. By the end of the year, SE been recelved. In addition, cash payments for the year were employees' salaries, $56,000; office suppli $25,000. Determine the amount of operating cash flows the company will report in the current year. (Cash ou minus sign.)arrow_forward
- The company has assets equal to 6,150,000 and liabilities equal to 2,650,000. Before the year ended cash was borrowed from the bank amounting to 1,500,000 half of which was used to buy equipment and the other half to pay for the liabilities which were already past due. What is the total equity of the company at year end ? Please show solution.arrow_forwardAnalyse and comment on the impact of the following events on a companies balance sheet, income statement and cash flow statement. E. g. Company purchases Machinery for $100,000 in cash. Effect. Obvious impact Fixed Asset increased, Balance sheet affected. Company will start recording depreciation expense in Income Statement Cash Outfi ow will reduce balance of cash on balance sheet. Current Ratio likely affected adversely and Working Capital. Analysis. Company may experience increase in Accounts Payable because of such a substantial cash outflow. This will affect Current Liabilities. Or. Company may have to seek short term loan from the bank as a back up in case there is any disturbance in receivables in the future. To counter this substantial cash outflow. Company should have negotiated with a bank a low interest loan to purchase machine over time in instalments. 1)A Manufacturing company ABC: relies on several suppliers for raw materials, often these materials are purchased on 90…arrow_forwardA company started its activity on 02.01.20X1 and the shareholders contributed all the capital in kind. No profits were made during that year.Based on this data, explain if and under what conditions at the end of the year the profit of the period will be equal to the cash in the company's coffers. Give two or three examples to justify your answer.arrow_forward
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