Sources of funds True or false? a. Net stock issues by U.S. nonfinancial corporations in most years are small but positive. b. Most capital investment by U.S. companies is funded by retained earnings and reinvested depreciation. c. Debt ratios in the United States are lower than in most other developed economies.

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Answer 1

Textbook Question

Chapter 14, Problem 1PS

Sources of funds True or false?

a. Net stock issues by U.S. nonfinancial corporations in most years are small but positive.
b. Most capital investment by U.S. companies is funded by retained earnings and reinvested depreciation.
c. Debt ratios in the United States are lower than in most other developed economies.

Expert Solution & Answer

Summary Introduction

To discuss: Whether the give statements are true or false.

Explanation of Solution

a.

The net stock issues by the nonfinancial companies in country U in majority of the years are neither small nor positive. Thus, the net equity issues are negative, it means that the repurchases of shares are larger than the share issues.

Hence, the given statement is false.

b.

Majority of the capital investments by country U corporations are funded by the depreciation that are invested again and by the retained earnings.

Hence, the given statement is true.

c.

In country U the debt ratios are lower when compared to other developed economies.

Hence, the given statement is true.

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3-7. (Working with an income statement and balance sheet) Prepare a balance sheet and income statement for Kronlokken Company from the following scrambled list of items. a. Prepare a common-sized income statement and a common-sized balance sheet. Interpret your findings. Depreciation expense $66,000 Cash 225,000 Long-term debt 334,000 Sales 573,000 Accounts payable 102,000 General and administrative expense 79,000 Buildings and equipment 895,000 Notes payable 75,000 Accounts receivable 153,000 Interest expense 4,750 Accrued expenses 7,900 Common stock 289,000 Cost of goods sold 297,000 Inventory 99,300 Taxes 50,500 Accumulated depreciation 263,000 Prepaid expenses 14,500 Taxes payable 53,000 Retained earnings 262,900 ||

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Answer 2

Textbook Question

Chapter 14, Problem 1PS

Sources of funds True or false?

a. Net stock issues by U.S. nonfinancial corporations in most years are small but positive.
b. Most capital investment by U.S. companies is funded by retained earnings and reinvested depreciation.
c. Debt ratios in the United States are lower than in most other developed economies.

Expert Solution & Answer

Summary Introduction

To discuss: Whether the give statements are true or false.

Explanation of Solution

a.

The net stock issues by the nonfinancial companies in country U in majority of the years are neither small nor positive. Thus, the net equity issues are negative, it means that the repurchases of shares are larger than the share issues.

Hence, the given statement is false.

b.

Majority of the capital investments by country U corporations are funded by the depreciation that are invested again and by the retained earnings.

Hence, the given statement is true.

c.

In country U the debt ratios are lower when compared to other developed economies.

Hence, the given statement is true.

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Answer 3

Textbook Question

Chapter 14, Problem 1PS

Sources of funds True or false?

a. Net stock issues by U.S. nonfinancial corporations in most years are small but positive.
b. Most capital investment by U.S. companies is funded by retained earnings and reinvested depreciation.
c. Debt ratios in the United States are lower than in most other developed economies.

Expert Solution & Answer

Summary Introduction

To discuss: Whether the give statements are true or false.

Explanation of Solution

a.

The net stock issues by the nonfinancial companies in country U in majority of the years are neither small nor positive. Thus, the net equity issues are negative, it means that the repurchases of shares are larger than the share issues.

Hence, the given statement is false.

b.

Majority of the capital investments by country U corporations are funded by the depreciation that are invested again and by the retained earnings.

Hence, the given statement is true.

c.

In country U the debt ratios are lower when compared to other developed economies.

Hence, the given statement is true.

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Answer 4

Textbook Question

Chapter 14, Problem 1PS

Sources of funds True or false?

a. Net stock issues by U.S. nonfinancial corporations in most years are small but positive.
b. Most capital investment by U.S. companies is funded by retained earnings and reinvested depreciation.
c. Debt ratios in the United States are lower than in most other developed economies.

Expert Solution & Answer

Summary Introduction

To discuss: Whether the give statements are true or false.

Explanation of Solution

a.

The net stock issues by the nonfinancial companies in country U in majority of the years are neither small nor positive. Thus, the net equity issues are negative, it means that the repurchases of shares are larger than the share issues.

Hence, the given statement is false.

b.

Majority of the capital investments by country U corporations are funded by the depreciation that are invested again and by the retained earnings.

Hence, the given statement is true.

c.

In country U the debt ratios are lower when compared to other developed economies.

Hence, the given statement is true.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

To discuss: Whether the give statements are true or false.

Explanation of Solution

a.

The net stock issues by the nonfinancial companies in country U in majority of the years are neither small nor positive. Thus, the net equity issues are negative, it means that the repurchases of shares are larger than the share issues.

Hence, the given statement is false.

b.

Majority of the capital investments by country U corporations are funded by the depreciation that are invested again and by the retained earnings.

Hence, the given statement is true.

c.

In country U the debt ratios are lower when compared to other developed economies.

Hence, the given statement is true.

Answer 8

Expert Solution & Answer

Summary Introduction

To discuss: Whether the give statements are true or false.

Explanation of Solution

a.

The net stock issues by the nonfinancial companies in country U in majority of the years are neither small nor positive. Thus, the net equity issues are negative, it means that the repurchases of shares are larger than the share issues.

Hence, the given statement is false.

b.

Majority of the capital investments by country U corporations are funded by the depreciation that are invested again and by the retained earnings.

Hence, the given statement is true.

c.

In country U the debt ratios are lower when compared to other developed economies.

Hence, the given statement is true.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

To discuss: Whether the give statements are true or false.

Answer 12

Explanation of Solution

a.

The net stock issues by the nonfinancial companies in country U in majority of the years are neither small nor positive. Thus, the net equity issues are negative, it means that the repurchases of shares are larger than the share issues.

Hence, the given statement is false.

b.

Majority of the capital investments by country U corporations are funded by the depreciation that are invested again and by the retained earnings.

Hence, the given statement is true.

c.

In country U the debt ratios are lower when compared to other developed economies.

Hence, the given statement is true.

Answer 13

Ch. 14 - Sources of funds True or false? a. Net stock...Ch. 14 - Prob. 2PS Ch. 14 - Terminology Fill in the blanks, using the...Ch. 14 - Prob. 4PS Ch. 14 - Prob. 5PS Ch. 14 - Prob. 6PS Ch. 14 - Corporate debt Which of the following features...Ch. 14 - Prob. 9PS Ch. 14 - Prob. 10PS

Solution Summary: The author analyzes whether the give statements are true or false. The net stock issues by non-financial companies in country U in majority of the years are neither small nor positive.

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