In buying alliances, participants offer to trade goods or services

Indicate whether the statement is true or false


FALSE

Business

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Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2018. To obtain these shares, Flynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Flynn in stock issuance costs.The book values for both Flynn and Macek as of January 1, 2018 follow. The fair value of each of Flynn and Macek accounts is also included. In addition, Macek holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands. Flynn, Inc Macek

Company   Book Value Fair ValueCash$900  $80  $80 Receivables 480   180   160 Inventory 660   260   300 Land 300   120   130 Buildings (net) 1,200   220   280 Equipment 360   100   75 Accounts payable 480   60   60 Long-term liabilities 1,140   340   300 Common stock 1,000   80     Additional paid-in capital 200   0     Retained earnings 1,080   480     ?What amount will be reported for consolidated cash after the acquisition is completed? A. $580,000. B. $500,000. C. $555,000. D. $875,000. E. $475,000.

Business

Employees for companies with established service standards tend to achieve a higher level of productivity.

Answer the following statement true (T) or false (F)

Business

The percent of sales method provides a more detailed plan for future financing needs than the cash

budget because both pro forma income statements and balance sheets are used in the analysis. Indicate whether the statement is true or false

Business

________ are established to evaluate a customer's creditworthiness and to determine the minimum requirements for extending credit to a customer

A) Lines of credit B) Credit limits C) Collection agencies D) Credit standards

Business