Corporations may avoid liability for the obligations of a predecessor corporation by treating a consolidation or merger as a sale of assets
Indicate whether the statement is true or false
False
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Use this information to answer the following question. Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year: 1 . Sold machinery for $9,000 cash. 2 . Purchased a building for $80,000 cash. 3 . Issued $70,000 worth of stock to acquire an airplane. 4 . Converted long-term bonds by issuing $100,000 worth of stock. 5 . Declared and paid a
$10,000 cash dividend. Transaction 1 would be found on the statement of cash flows in the a. cash flows from operating activities section. b. cash flows from financing activities section. c. noncash investing and financing transactions section. d. cash flows from investing activities section.
In July, a company pays three years' insurance in advance. The December 31 adjusting entry is
A) Insurance Expense - Debit; Prepaid Insurance - Credit B) Prepaid Insurance - Debit; Insurance Expense - Credit C) Insurance Expense - Debit; Cash - Credit D) Prepaid Insurance - Debit; Cash - Credit
Bear Corporation sells product G for $150 per unit, the variable cost per unit is $105, the fixed costs are $720,000, and Bear is in the 25% corporate tax bracket. What are the sales (dollars) required to earn a net income (after tax) of $40,000?
A) $2,533,350 B) $2,577,777 C) $2,933,400 D) $2,400,000
Scenario 8.2
Use the following to answer the questions. Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in Northeast and Southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the Northeastern states. Company executives are considering expansion of its distribution to markets in the Midwest. Refer to . When Precision Brake's sales team calls on tractor manufacturing companies, the meetings typically include the engineers who design the tractors. In this situation, the engineers would most likely be considered to be ____, part of the buying center. A. gatekeepers B. influencers C. users D. buyers E. controllers