At the beginning of the year, a firm leased equipment on a capital lease, capitalizing $60,000 in both its lease liability and leased assets accounts. The contract calls for December 31 payments of $15,000 . The lessee's annual reporting period ends December 31 and the contract reflects 10% interest. The lessee made the first payment as required. The direct method statement of cash flows for the
lessee should reflect which of the following in the first year of the lease contract (ignore noncash disclosures)?
a. $15,000 financing cash outflow
b. $15,000 operating cash outflow
c. $6,000 operating cash outflow; $9,000 financing cash outflow
d. $9,000 financing cash outflow
A
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An actor asks an agent to place an order for a couch on the agent's way back to work. This is an instance of ________
A) a dual-purpose mission B) frolic and detour C) coming and going D) self-dealing
Why does a U.S. company exporting wooden furniture manufactured in Malaysia to the European Union benefit from the decline in the value of the ringgit against the euro?
A. Because decline in the value of the ringgit against the euro has no impact on the cost of furniture manufactured in Malaysia, both in Malaysian or European markets. B. Because decline in the value of the ringgit against the euro makes Malaysian goods less competitive in the U.S. market. C. Because decline in the value of the ringgit against the euro raises the cost of furniture manufactured in Malaysia, making it less competitive in European markets. D. Because decline in the value of the ringgit against the euro makes European goods more competitive as compared to Malaysian goods. E. Because decline in the value of the ringgit against the euro reduces the cost of furniture manufactured in Malaysia, making it more competitive in European markets.
Which regional trade area was formed in 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand?
a. CARICOM b. The Mercosur c. ASEAN d. The Asia Pacific Economic Cooperation Group (APEC)
Fuson Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit$118Budgeted unit sales (all on credit): October 9,600 November 10,100 December 13,700 January 11,300 Raw materials requirement per unit of output 3poundsRaw materials cost$4.00per poundDirect labor requirement per unit of output 2.7direct labor-hoursDirect labor wage rate$23.00per direct labor-hourPredetermined overhead rate (all variable)$12.00per direct labor-hourCredit sales are collected:30% in the month of the sale70% in the following monthRaw materials purchases are paid:30% in the month of purchase70% in the following monthThe ending finished goods inventory should equal
10% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs.The budgeted accounts receivable balance at the end of November is closest to: A. $1,191,800 B. $357,540 C. $834,260 D. $795,000