Blair Madison Co. issues $2.8 million of new stock and pays $560,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $4.2 million in a new bond issue and paid off existing bonds with a face value of $5.6 million. The company bought 1,400 of another company's $1,000 bonds at a $280,000 premium. The net cash flow provided by financing activities is:
A. An outflow of $280,000.
B. An inflow of $1,400,000.
C. An outflow of $560,000.
D. An inflow of $840,000.
Answer: D
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Souped Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which payment plan is exemplified in this scenario?
A. standard hour plan B. differential plan C. piecework plan D. skill-based plan E. merit pay
Under current GAAP, the rate of interest assigned to non-interest-bearing notes is
A) the borrower's incremental borrowing rate. B) the lender's incremental borrowing rate. C) the interest rate for long-term government securities. D) the prime rate.
A corporation reported cash of $27,000 and total assets of $461,000 on its balance sheet. Its common-size percent for cash equals:
A. 5.86%. B. 17.1%. C. 58.6%. D. 100%. E. 1707%.
In marketing, it is the manager's viewpoint that matters, not the customer's.
Answer the following statement true (T) or false (F)