Below are typical transactions for a company. Indicate whether each transaction is classified as a financing, investing, or operating activity. Transactions 1. Purchase office building. 2. Pay building maintenance fees. 3. Pay sales taxes to the local government. 4. Provide services to customers. 5. Borrow from the bank. 6. Pay workers' salaries. 7. Sell equipment used in operations. 8. Sell common stock to investors. Type of Business Activity Investing Financing Claudine Corporation will deposit $5,000 into a money market account at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the account earns 9% interest? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $32,617. $26,800. $29,924. $27,250. At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $340,000 and in Allowance for Uncollectible Accounts of $1,430 (debit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. Bad debt expense for the year should be: Multiple Choice $4,830. $1,430. $1,970. $7,131. Travis Co. sold merchandise to ABC Co. on account for $17,000, terms 2/15, net 45. The cost of the merchandise sold is $15,400. Travis Co. issued a credit memo for $1,750 for merchandise returned that originally cost $1,400. ABC Co. paid the invoice within the discount period. What amount of NET SALES will Travis Com record for the transaction? Multiple Choice $17,000 None of these choices $15,250 $14,945 All of the following statements regarding the gross profit ratio are true EXCEPT Multiple Choice Managers, investors, and creditors use the gross profit ratio to measure one aspect of profitability. The gross profit ratio alone is sufficient to determine a company's profitability. The gross profit ratio explains how many cents on every dollar are available to cover expenses other than cost of goods sold and to earn a profit. If a company's net sales were $200,000 and cost of goods sold were $120,000, its gross profit ratio would be 40%. The following data concerns New Corporation for 2020: Credit sales during the year Accounts Receivable -December 31, 2020 Allowance for Uncollectibles -December 31, 2020 Bad Debt Expense for the year $1,600,000 235,000 18,000 11,000 What amount will New show on its year-end balance sheet for the net realized value of its accounts receivable? Multiple Choice $253,000 $224,000 $217,000 $235,000 During 2020, the accounts receivable turnover rate for XYZ Company increased from 10 to 14 times per year. Which one of the following statements is the most likely explanation for the change? Multiple Choice The company has extended credit to more risky customers in order to increase sales. The company has decreased sales to its most credit worthy customers. The company's credit department has followed up with customers whose account balances are past due in order to generate quicker collections. The company has increased the amount of time customers have to pay their accounts before they are past due. North Inc. purchased equipment at a cost of $80,000. The equipment has an estimated residual value of $5,000 and an estimated life of 8 years. The equipment was purchased on January 1, 2019. What would be the book value of the equipment at December 31, 2021? Multiple Choice $51,875 $46,875 $67,500 $62,500