Which of the following statements is true of this transaction? Joey Corporation borrows $500,000 from its bank, to purchaseinventory and equipment. Which of the following statements istrue of this transaction?a. Cash will decrease by $500,000.b. Note payable will increase by $500,000.c. Inventory will decrease by $500,000.d. The amount of total assets will remain unchanged.e. Liabilities will decrease.

Explanation:When Joey Corporation borrows $500,000 from the bank:Cash increases by $500,000 (an…

Answered: Joey Corporation borrows $500,000 from…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 6DQ

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Which of the following would result when a company lends cash to a customer in exchange for a ten month note receivable? a. a noncurrent asset and an investing cash flow are created. b. a noncurrent asset and a financing cash flow are created. c. a current asset and a financing cash flow are created. d. a current asset and an investing cash flow are created.
Analyse the effect of the actions below on the debt/equity ratio. Assume current debt/equity ratio is 0.5. (v) Issuing new equity (vi) Account receivable collected (vii) Sell goods on book value, on cash basis (viii) Pay off the company’s long term bank loan
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Cash is obtained through short-term bank loans.
Assume that the company has a current ratio of 1.2. Now which of the above actions would improve this ratio. Which of the following actions would improve (i.e., increase) this ratio?• Use cash to pay off current liabilities.• Collect some of the current accounts receivable.• Use cash to pay off some long-term debt.• Purchase additional inventory on credit (i.e., accounts payable).• Sell some of the existing inventory at cost.
We are given the following information for Pettit Corporation. Sales (credit) Cash Inventory Current liabilities Asset turnover Current ratio Debt-to-assets ratio Receivables turnover $2,068,000 150,000 923,000 763,000 a. Accounts receivable b. Marketable securities c. Capital assets. d. Long-term debt $ Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Calculate the following balance sheet items: LA LA LA $ $ 1.00 times 2.60 times $ 40 % 4 times 517000
please answer correctly and explain in detail the correct option please explain step by step
We are given the following information for Pettit Corporation. Sales (credit) Cash Inventory Current liabilities. Asset turnover Current ratio Debt-to-assets ratio Receivables turnover $4,344,000 229,000 873,000 773,000 a. Accounts receivable b. Marketable securities c. Capital assets d. Long-term debt $ $ Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Calculate the following balance sheet items: ta ta ta 1.45 times 2.80 times $ $ 50 % 8 times
A comparative balance sheet for Pina Corporation is presented as follows. December 31 Assets 2025 2024 Cash $72,840 $22,000 Accounts receivable 84,300 68,460 Inventory 182,300 191,460 Land 73,300 112,460 Equipment 262,300 202,460 Accumulated depreciation-equipment (71,300) (44,460) Total $603,740 $552,380 Liabilities and Stockholders' Equity Accounts payable $36,300 $49,460 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 203,440 138,920 Total $603,740 $552,380 Additional information: 1. Net income for 2025 was $129,600. No gains or losses were recorded in 2025. 2. Cash dividends of $65,080 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is:
takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Which statement is not true? Oa. Disclosures related to receivables are reported on the financial statement notes. Ob. Current assets are normally reported in order of their liquidity. Oc. All receivables that are expected to be realized in cash beyond 265 days are reported in the non-current assets section. Od. Cash and cash equivalents are the first items reported under current assets.
Indicate if the following transactions increase or decrease cash and classify the transactions as Operating, Investing or Financing Activities Enter I For increase and D for decrease. Enter O for Operating, I for Investing, and F for Financing. 1. Pay taxes D O 2. Collect cash from customers I O 3. Issue common stock F 4. Take out a loan from a bank 5. Purchase stock in another company I 6. Sell government debt security 7. Buy a patent 8. Retire a bonds payable 9. Pay dividends 10. Pay insurance 11. Pay interest on a loan 12. Pay principal on a loan 13. Pay salaries 14. Repurchase treasury stock 15. Sell a copyright to another firm 16. Pay suppliers for inventory 17. Dividend payments received from stock investment. 18. Interest payments received from investment in government debt securities.
24. A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance.In a statement of cash flows, what amount is included in investing activities for the above transaction? Zero Acquisition price Mortgage amount Cash payment

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