Reference no: EM131197583
Explain briefly how each of the following transactions would affect a company's balance sheet. (Remember that assets must equal liabilities plus owners' equity before and after the transaction.)
a. Sale of used equipment with a book value of $300,000 for $500,000 cash.
b. Purchase of a new $80 million building, financed 40 percent with cash and 60 percent with a bank loan.
c. Purchase a new building for $60 million cash.
d. A $40,000 payment to trade creditors.
e. A firm's repurchase of 10,000 shares of its own stock at a price of $24 per share.
f. Sale of merchandise for $80,000 in cash.
g. Sale of merchandise for $120,000 on credit.
h. Dividend payment to shareholders of $50,000.
What was the net new long-term debt
: During 2015, Rainbow Umbrella Corp. had sales of $730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $125,000, and $180,000, respectively. Suppose the company paid out $64,000 in cash dividends...
|
What is the expected return on the investment
: As the Chief Investment Officer for "A Nyce Place to Work" you have been given the opportunity to invest in the Super-Tazer. It is a tazer, that when you push the button incapacitates everyone in a 10 foot radius of you. What is the expected return o..
|
After-tax cash flow from sale is same value
: Suppose that ABC Company purchased $10000 of machinery 3 years ago. The machinery is 5-year MACRS property. The firm is selling this equipment today for $5000. What is the aftertax cash flow from this sale if the tax rate is 30%? After-tax cash flow ..
|
The firm had paid no cash? dividend
: Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year? Blazo's common stock was selling for ?$17.95 but by year end it was only ?$15.28. If the firm paid a total cash dividend of $ 1.56 during the? year, what rat..
|
Liabilities plus owners equity before and after transaction
: Explain briefly how each of the following transactions would affect a company's balance sheet. (Remember that assets must equal liabilities plus owners' equity before and after the transaction.)
|
What is the break-even volume in the first year
: The manufacturer, Innovation Beverage, has developed a new breakfast drink, Break-C. Break-C will be packaged in an 8-oz can and introduced to the breakfast drink market, which is estimated to be 21 million 8-oz cans nationally. What is the contribut..
|
Markets word-processing software to the household consumer
: Marketing managers at Home Office Systems, which markets word-processing software to the household consumer, are in the process of preparing annual forecasts and budgeting. Based on their analysis, the following are forecasted for the next year: Sale..
|
What is the first-year break-even market share
: A major concern is a lack of funds for marketing. As such, Break-C will only be distributed in major metropolitan areas that account for 65% of U.S. breakfast drink market volume. Print ads will carry a coupon entitling consumers to receive $.20 off ..
|
Introduced to the breakfast drink market
: The manufacturer, Innovation Beverage, has developed a new breakfast drink, Break-C. Break-C will be packaged in an 8-oz can and introduced to the breakfast drink market, which is estimated to be 21 million 8-oz cans nationally. Break-C manufacturer ..
|