Question

As you approach? graduation, you are evaluating your job offers from the following companies. Assuming that...

As you approach? graduation, you are evaluating your job offers from the following companies. Assuming that all other factors are equal? (pay, benefits,? location, job? duties, industry, company? size, company age? etc.), for which of the following companies would you chose to work and? why?

A

B

C

Cash Flows from operations

?+$115,000

?$100,000

?$0

Cash Flows from investing activities

?($20,000)

?$0

Cash Flows from financing activities

?+$5,000

?+$100,000

Net increase in cash for the most current year

?+$100,000

?+$100,000

?+$100,000

A.

Company? B, the company only generates cash from its daily operations and is not spending the cash for any other reason.

B.

All three companies offer the same opportunity for the future.

C.

Company? C, the company only generates cash from the owners.

D.

Company? A, the company is generating cash from its daily? operations, investing in

long?term assets and generating cash from? its' owners or borrowing a relatively small amount.

Before a 22?form?1 stock? split, the shares outstanding were 40,000 shares at $70 par. After the? split, what was the par value and number of? shares?

A.

80,000

shares and $70?/share

B80,000

shares and $35?/share

C.

20,000

shares and $35?/share

D.

20,000

shares and $70?/share

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
  • All working (if any required) forms part of the answer
  • Answer 1:

The correct option would be Option ‘D’: Company A, as the company is generating cash from its daily operations, investing in long term assets and generating cash from its owners or borrowing a relatively small amount.

‘B’ company is not recommended as it is only generating cash from operations.
‘C’ is not recommended as it is generating nothing from its operations.

  • Answer 2:

Shares outstanding before Split:
40,000 shares at $ 2,800,000 [ 40000 x 70]

Stock split = 2 for 1
40,000 shares will be come 80,000

Hence, after stock split:
80,000 at $ 2,800,000

Hence, the new par value will be $ 2,800,000 / 80,000 shares = $ 35 per share.

Therefore the correct answer is Option ‘B’: 80,000 shares and $ 35/ share

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Elkin Company reported the following in its Statement of cash Flows for 2014: Cash Flows from...
Elkin Company reported the following in its Statement of cash Flows for 2014: Cash Flows from operations   ($35,000) Cash Flows from investing activities   ($20,000) Cash Flows from financing activities   +$115,000 Net increase in cash   +$60,000 Which of the following is a possible description of the company’s results? Group of answer choices The company issued bonds to generate funds for its operations and investments in stock The company sold Investments in stock and Treasury Stock to fund its operations The company...
1. On an indirect method statement of cash flows, the purchase of machinery in exchange for...
1. On an indirect method statement of cash flows, the purchase of machinery in exchange for common shares is: Select one: a. ignored b. reflected in the investing activities section c. shown in the schedule of noncash investing and financing activities which accompanies the statement of cash flows d. reflected in the operating activities section Question 2. The statement of cash flows is designed to fulfill all of the following purposes except: Select one: a. to determine the company's ability...
For each of the following items, assuming the company reports cash flows from operations using the...
For each of the following items, assuming the company reports cash flows from operations using the Indirect Method, Indicate whether the item is: A positive cash flow from Operating activities = +O A negative cash flow from Operating activities = -O A positive cash flow from Financing activities = +F A negative cash flow from Financing activities = -F A positive cash flow from Investing activities =+I A positive cash flow from Investing activities =-I A non-cash financing and investing...
Given the following information for Company X at the end of 2019: ·         Net cash flows from...
Given the following information for Company X at the end of 2019: ·         Net cash flows from operating activities is $150,000 ·         Net cash flows from investing activities is ($50,000) ·         Net cash flows from financing activities is ($80,000) ·         Cash balance at the beginning of the 2019 is $10,000 From the previous information, the balance of cash at the end of 2019 is: Select one: a. $20,000 b. All answers are wrong c. $10,000 d. 0 e. $30,000
True or False 1. The approach to preparing the cash flow statement relies on the following...
True or False 1. The approach to preparing the cash flow statement relies on the following rearrangement of the balance sheet equation: Change in cash = Change in (Liabilities + Stockholders' Equity + Noncash Assets). 2. Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows. 3. In the decline phase, the company continues to enjoy positive operating cash flows but stops spending cash on investing...
1. Which of the following would be added to net income when using the indirect approach...
1. Which of the following would be added to net income when using the indirect approach to prepare the cash from operating activities of the Statement of Cash Flows? a. increase in inventory b. gain on sale of investments c. decrease in wages payable d. decrease in accounts receivable 2. Tripe H Enterprises reported $26,000 of cash from operating activities and the following data: Depreciation $45,000 Increase in accounts payable 12,000 Increase in wages payable 8,000 Increase in inventory 9,000...
5-)Qtopia Company uses the direct method to prepare its statement of cash flows. It has reported...
5-)Qtopia Company uses the direct method to prepare its statement of cash flows. It has reported sales revenues of $100,000 on its income statement for the year 2012. If the balance in accounts receivable has gone up by $4,000 during the year, then $4,000 will have to be added to $100,000 to calculate collections from customers. True or false 6-)Qtopia Company uses the direct method to prepare its statement of cash flows. It has reported operating expenses of $21,000 on...
Poppy Corporation owns 60 percent of Seed Company’s common shares. Balance sheet data for the companies...
Poppy Corporation owns 60 percent of Seed Company’s common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Poppy Corporation Seed Company Assets Cash $ 90,000 $ 32,000 Accounts Receivable 83,000 57,000 Inventory 118,000 99,000 Buildings and Equipment 660,000 350,000 Less: Accumulated Depreciation (235,000 ) (74,000 ) Investment in Seed Company Stock 135,000 Total Assets $ 851,000 $ 464,000 Liabilities and Owners’ Equity Accounts Payable $ 71,000 $ 39,000 Bonds Payable 250,000 200,000 Common Stock...
Pain Corporation holds 90 percent of Soothing Company's common shares but none of its preferred shares....
Pain Corporation holds 90 percent of Soothing Company's common shares but none of its preferred shares. On the date of acquisition, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soothing Company. Summary balance sheets for the companies on December 31, 20X8, are as follows: Pain Corporation Soothing Company Cash and Receivables $ 80,000 $ 70,000 Inventory 40,000 30,000 Buildings and Equipment (net) 160,000 150,000 Investment in Soothing Company 135,000 0 Total...
Cameron Company was incorporated on January 1, 2016. The following events apply to the company's first...
Cameron Company was incorporated on January 1, 2016. The following events apply to the company's first year of operations. i. Issued 3,000 shares of $10 par value common stock at a market price of $25 per share. ii. Earned $45,000 cash revenue. iii. Incurred $30,000 of cash expenses iv. Declared a $5,000 cash dividend v. Paid the cash dividend declared in Event iv. vi. Bought back 800 shares of the $10 par value common stock for $20 per share Use...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT