Upon review of Jerry's Canoe Gallery statement of cash flows, the following was noted: Cash flows from operating activities $ 75,000 Cash flows from investing activities (135,000) Cash flows from financing activities 125,000 From this information, the most likely explanation is that Jerry is
a. using cash from operations and selling long-term assets to pay back debt.
b. using cash from operations and borrowing to purchase long-term assets.
c. using its profits to expand growth.
d. using cash from investors to provide for operations.
b
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Under IFRS, SPEs are consolidated when evidence indicates that the reporting company "controls" the SPE. Control is presumed if which of the following conditions exist? The reporting entity performs activities on behalf of the SPE. The SPE has decision-making powers over the activities of the reporting entity. The reporting company has exposure, or rights, to variable returns from its involvement with the investee The reporting company has the ability to use its power over the investee to affect the amount of the firm's returns
A. I, II, and III only. B. I and II only. C. III and IV only. D. I, II, III, and IV.
Which of the following most accurately describes the relative length of consumer and industrial distribution channels?
A) Consumer channels tend to be longer (consist of more intermediaries) than industrial channels. B) Industrial channels tend to be longer (consist of more intermediaries) than consumer channels. C) Both consumer and industrial channels tend to be long (consist of several intermediaries). D) Both consumer and industrial channels tend to be short (consist of few intermediaries). E) Consumer channels tend to be shorter (consist of few intermediaries) than the industrial channels.
________ are defined as contracts in which the only choice for one of the parties is between agreeing to the terms dictated by the other party or not contracting at all.
A. Aleatory contracts B. Contracts of expression C. Bilateral contracts D. Contracts of adhesion
At the beginning of the year, Clampett, Inc., had $100,000 in its AAA and $60,000 of earnings and profits from prior C corporation years. During the year, Clampett, Inc., earned $50,000 of ordinary income and paid $200,000 in distributions to its shareholders. Assume that J.D. owns 25 percent of Clampett, Inc., his basis in Clampett, Inc., at the beginning of the year is $10,000, and his share of the distribution was $50,000. How much, if any, of the distribution is taxable as a capital gain?
A. $27,500. B. $40,000. C. $15,000. D. $0. E. None of the choices are correct.