During year 1, el paso company had the following changes in account balances: the accumulated depreciation account had a beginning balance of $65,000 and an ending balance of $91,000. the increase was due to depreciation expense. the long-term notes payable account had a beginning balance of $104,000 and an ending balance of $48,000. the decrease was due to repayment of debt. the equipment account had a beginning balance of $80,000 and an ending balance of $242,000. the increase was due to the purchase of other operational assets. the long-term investments account (marketable securities) had a beginning balance of $57,600 and an ending balance of $40,000. the decrease was due to the sale of investments at cost. the dividends payable account had a beginning balance of $38,400 and an ending balance of $32,000. there were $64,000 of dividends declared during the period. the interest payable account had a beginning balance of $7200 and an ending balance of $4000. the difference was due to the payment of interest. what is the net cash flow from financing activities? $70,400 inflow $56,000 outflow $126,400 outflow $56,000 inflow

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

You own 2,200 shares of deltona hardware. the company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. your required rate of return on this security is 16 percent. ignoring taxes, what is the value of one share of this stock to you today?

Anew japanese restaurant opens two blocks from your home. the owner, reiko, is a personal friend of yours. you don't particularly like japanese food, but you decide to go anyway; however, there is nothing on the menu that sounds appealing. unfortunately, it turns out that most of the people in your town don't like japanese cuisine either. reiko confides that business is not good, but she isn't sure what to do from an economic standpoint. which of the following would most likely describe adam smith's perspective on this problem? select one: a. reiko should ask the government for assistance. b. reiko should close the restaurant and find a different career. c. reiko should lay off workers and do everything herself to save money. d. reiko should add other foods to the menu and offer discounts to attract more people to her restaurant.