When a company pays a supplier for inventory it has purchased, the cash outflow is recorded in the investing activities section of the statement of cash flows.
Answer the following statement true (T) or false (F)
False
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Dan Company recently acquired two items of equipment. The transactions are described below: June 10: Acquired a press at an invoice price of $6,500, subject to a 2% cash discount which was taken. Costs of freight and insurance during shipment were $205 . Installation costs were $350. November 12: Acquired a welding machine at an invoice price of $4,000, subject to a 4% cash discount which was NOT
taken. Additional welding supplies were acquired at a total cost of $300. The increase in the equipment account as a result of the above transactions would be a. $10,525 b. $10,720 c. $10,925 d. $11,225
Product innovations are commonly associated with a differentiation strategy.
Answer the following statement true (T) or false (F)
Perry purchased 100 shares of Ferro, Inc common stock for $25 per share one year ago. During the year, Ferro, Inc paid cash dividends of $2 per share. The stock is currently selling for $30 per share
If Perry sells all of his shares of Ferro, Inc today, what rate of return would he realize?
Producers do cooperative advertising with retailers because
A. retailers create better ads than producers. B. media rate structures give national firms lower rates than local firms. C. retailers are more likely to follow through when they are paying a share of the cost. D. the FTC requires it.