Consider the following potential events that might have occurred to Global on December 30, 2013. For each one, indicate which line items in Global's balance sheet would be affected and by how much. Also indicate the change to Global's book value of equity.
a. Global used $ 19.3 million of its available cash to repay $ 19.3 million of its long-term debt.
b. A warehouse fire destroyed $ 4.9 million worth of uninsured inventory.
c. Global used $ 5.1 million in cash and $ 5.2 million in new long-term debt to purchase a $ 10.3 million building.
d. A large customer owing $ 2.8 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.
e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 45 %. f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Consider the following potential events that might have occurred to Global on December 30, 2013. For each one, indicate which line items in ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Mr. Hamid is running his small retail business under the name of Hamid Store. He has recently hired Mr. Imran as a junior accountant to maintain the books of accounts of his business. Mr. Imran has little knowledge in accounting.
Answers (1)
There are a number of things that you can do to protect yourself from falls in the workplace these include using fall protection equipment and using ladder safety what else can you do
Answers (1)
Rodriquez Company budgeted the following sales in units: January 30,000 February 20,000 March 40,000 Rodriquez's policy is to have 20% of the following month's sales in inventory. On January 1, inventory equaled 7,500 units.
Answers (1)
Knowing how to report injuries/illnesses, seeing the annual summary, and what else are all worker rights related to injury and illness reporting for osha
Answers (1)
what would be some difficulties encountered in trading during the vedic age?
Answers (1)
New Questions in Business
When the government goes from running a balanced budget to running a budget surplus: a. National saving decreases, the interest rate rises, and the economy's long-run growth rate is likely to decrease. b.
Answers (1)
Based on the definition of "deferred exchange strategies" the people most likely to be involved in this strategy would be a
Answers (1)
Augustus is a chemical engineer. Recognition of his work by the American Chemical Society is more important to him than a performance appraisal from his boss. He is a a. knowledge worker. b. task-oriented employee. c. contributory employee. d.
Answers (1)
The assessed value of Sidney's home is $350,000, but the home was recently appraised at $225,000. As a result, Sidney believes her tax bill is way too high. What option does Sidney have?
Answers (1)
Companies can choose from different costing methods: process/product costing and activity-based costing.
Answers (1)