finance

Trekkers Footwear bought a piece of machinery on January 1, 2006 at a cost of $2.3 million, and the machinery is being depreciated annually at an amount of $230,000 for 10 years. Its market value on December 31, 2008 is $1.75 million. The firm's accountant is preparing its financial statement for the fiscal year end on December 31, 2008. The net value of the asset that should be reported on the balance sheet is:

$1.61 million.

Which of the following would appear as a liability on a company's balance sheet?

notes payable

The assumption of arm's-length transaction states that:

both parties to a transaction can act independently of each other and make economically rational decisions.

Cash flows from financing activities include all but one of the following:Buying and selling bonds or stock of other firms. Cash proceeds from a bank loan. Cash purchases of treasury stock. Cash payments on the principal of long-term debt.

:Buying and selling bonds or stock of other firms

operating activities?

Cash flow from operating activities = Net income + Sources of cash - Uses of cash

Natural Lite, Inc. reported the following items during fiscal 2010. The firm purchased marketable securities of $87,500, paid down a long-term loan in the amount of $650,000, purchased $4,250,000 of new equipment. The firm also issued $6,250,000 of common stock, paid $350,225 in dividends to its common shareholders, and repurchased $1,250,000 of common stock in the open market. What is the net cash provided by financing activities?

Cash inflows from financing activities = $6,250,000 Cash outflows from financing activities = $650,000 + $1,250,000 + $350,225 = $2,250,225 Net cash flows from financing activities = $6,250,000 - $2,250,225 = $3,999,775

On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The goods were shipped to Rynex on July 2. The firm's accountants should recognize the sale on:

June 23, 2008

Net working capital

Net working capital = Current assets − Current liabilities = ($150 + $397) − $324 = $223

The average tax rate is:

calculated by dividing the total taxes paid by the taxable income.