Explain briefly, how each of the following transactions would affect a companys balance sheet a. Purchase of
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Explain briefly, how each of the following transactions would affect a company’s balance sheet
a. Purchase of a new $80 million building, financed 40% with cash and 60% with a bank loan.
b. Purchase of a new building for $60 million cash.
c. A $ 40.000 payment to trade creditors.
d. A firm’s repurchase of 10.000 shares of its own stock at a price of $24 per share.
e. Sale of merchandise for $80.000 in cash.
i. Sale of merchandise for $120.000 on credits.
ii. Dividend payment to shareholders of $50.000.
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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