expenses ($20‚000) Increase in accounts payable $210‚000 Decrease in accrued expenses $20‚000 Total adjustments $380‚000 Net cash flow from operating activities $160‚000 Cash flows from investing activities: Increase in investments ($10‚000) Increase in plant and equipment $400‚000 Net cash flow from investing $390‚000 Cash flow from financing activities: Increase in bonds payable $50‚000 Preferred stock dividends paid $10‚000 Common stock paid $120‚000 Net cash flow from financing activities
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primarily used‚ however both are acceptable under generally accepted accounting principles. The statement of cash flows is divided into three sections and shown in the report in the following order. Operating activities is reported first‚ followed by investing activities‚ and finally financing activities. Operating activities deals with each transaction that involves both revenues and expenses. This category is considered important because operating activities are the best predictor of a company’s ability
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Salem State University ACC202 – Managerial Accounting – Practice Test Chapters 14‚ 1‚ 2 Professor Paul F McGee‚ CPA Name___________________________________________ Please indicate the best/correct answer by circling the appropriate letter. 1. Managerial accounting helps managers perform three vital activities. These activities include all of the following except: a. Planning b. Controlling c. Decision making d. Hiring Controllers 2. The act that was intended to protect the interests
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Chemalite‚ Inc. Bennett Alexander has invented a glow light using a series of chemicals into a contraption he calls Chemalites. He starts up his business by getting $500‚000 from investors and he tries to put his invention on the market. But by the end of 2003‚ with operations in full swing for a good six months‚ Chemalite‚ Inc. is seeing its cash balance drop tremendously‚ which Alexander and his investors view as a negative. Even though they thought their business was doing well‚ the numbers
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Candela Corporation had a significantly higher amount of loss in its net cash used in operating activities of $7‚071 (thousands) compared to its net loss of $2‚154 (thousands)‚ a difference of $4‚917. Candela Corporation also had a net loss in its investing activities of $1‚058 (thousands)‚ and a net loss in its financing activities of $5‚141 (thousands). Candela also had a loss of $68 (thousands) on its income taxes for the year. In 2002‚ the company took a loss in
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know how the financial system is still working before investing money carefully ‚ as investing is an important part of the financial planning process. 1. Understanding of law of “ Supply and Demand” Before making an investment in the stock market ‚ the company should have a good understanding of law and economics principles . Supply and demand is very essential and something the company must know before investing money into the stock market correctly. When the demand of
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Recession was nearing its start‚ so the market took a big hit with that being said. Both sponsor and non-sponsor backed IPOs underwent price declines in their share-price valuation during this time‚ which should be viewed as a negative when considering investing in sponsor backed IPOs. To build on that with something that can be viewed as a positive‚ is that sponsor backed IPOs fell at a lesser rate than non-sponsor backed IPOs‚ decreasing at roughly 9% and 12% respectively. Another positive of sponsor backed
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ρ1‚3 = 0.25 ρ2‚3 = 0.35 σ3 = 20% (a) What is the expected return and standard deviation of an equally weighted portfolio investing in all three assets? (b) What would the diversification benefit be for an investor that shifted her investment to the equally weighted portfolio from an investment consisting only of asset 1? (c) If choosing between investing all her capital in asset 2 or in the equally weighted portfolio‚ what would an investor with a risk aversion parameter‚ A‚ of 3 choose
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Waverly and Disappearing Dollars 1. How would you solve Waverly’s budgeting issue? In order to solve Waverly’s issue‚ I would advise her to work on the zero-based budget‚ this is where every dollar has a name before the month begins. Waverly is doing great at giving every dollar a name but instead of doing it as she spends her money she needs to do it before the month begins‚ so that she is already aware of where her money is going to for that month. 2. Is Waverly right in giving every penny a name
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and indirect cash flow are just what they seem. Direct statement of cash flow identifies a company’s sources and uses of cash. This cash flow has three sections that include operating‚ investing‚ and financing activities. Operating activities includes receipts and payments from normal business operations. Investing activities include the purchase or sale of long-term asset and investments. Financing activities relate to borrowing money and making payments to creditors and investors. Now Indirect cash
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