Please answer these questions and give an explanation as to theanswer:
Question 1
What ratio measures the underlying risk of a company? |
Question 2
Gaston Co. reports the following cash activities for theyear:
Receive cash from customers | $100,000 |
Pay cash to purchase building | $90,000 |
Receive cash from issuance of stock | $50,000 |
Pay cash for employee salaries | $40,000 |
Pay cash for dividend to stockholders | $20,000 |
Receive cash from sale of land | $70,000 |
Pay cash for repayment of borrowing | $80,000 |
Receive cash from long-term borrowing | $60,000 |
Pay cash for purchase of supplies | $30,000 |
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Calculate the amount of investing cash flows?
Question 3
Clothing Emporium was organized on January 1, 2015. The firm wasauthorized to issue 100,000 shares of $5 par value common stock.During 2015, Clothing Emporium had the following transactionsrelating to shareholders' equity:
Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000.
What is the total amount recorded in the Common Stock account atthe end of 2015? |
Question 4
Gaston Co. reports thefollowing amounts:
Net income | $25,000 | Depreciation Expense | $4,000 | Increase in Accounts Receivable | $1,000 | Issuance of common stock | $15,000 | Decrease in Taxes Payable | $3,000 | Sale of land | $20,000 | Loss on the sale of land | $2,000 | Payment of dividends | $5,000 | | |
Calculate the amount of operating cash flows: |