Question

Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. Choose the correct answer in the following statements about financial and real assets. a. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years. The bank loan is a for Lanni. Lanni's $50,000 IOU is the bank's . The cash Lanni receives is a . The new financial asset is Lanni's promissory note held by the bank. b. Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software. The cash paid by Lanni is the transfer of a to the software developer. In return, Lanni gets a , the completed software. c. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 2,000 shares of Microsoft stock. Lanni sells the software, which is a , to Microsoft. In exchange Lanni receives a , 2,000 shares of Microsoft stock. A new financial asset is if Microsoft issues new shares. d. Lanni sells the shares of stock for $70 per share and uses part of the proceeds to pay off the bank loan. In selling 2,000 shares of stock for $140,000, Lanni is exchanging one for another. In paying off the IOU with $50,000, Lanni is exchanging . The loan is in the transaction, since it is retired when paid.

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

? v . ** 01:03 ENG 02-03-2020 25 CP241 - X for СР CO CO CR CS CT cu cro 220 THE BANK LOAN IS A FINANCIAL LIABILITY FOR LANNI THE LANNI'S 50000 IOU IS THE BANK'S FINANCIAL ASSET THE CASH LANNI RECEIVES IS A FINANCIAL ASSET. THE NEW FINANCIAL ASSET CREATED IS LANNI'S PROMISSORY NOTE. CASH PAID BY LANNI IS THE TRANSFER OF A FINANCIAL ASSET TO THE SOFTWARE DEVELOPERS. IN RETURN, LANNI GETS A REAL ASSET, THE COMPLETED SOFTWARE LANNI SELL THE SOFTWARE WHICH IS A REAL ASSET TO MICROSOFT LANNI RECEIVES A FINANCIAL ASSET 2000 SHARES OF MICROSOFT A NEW FINANCIAL ASSETS IS CREATED IF IT ISSUES NEW SHARES 232 233 234 235 LANNI EXCHANGES ONE FINANCIAL ASSET (2000 SHARES OF STOCK) FOR ANOTHER (140000 IN CASH). IN PAYING OFF THE IOU WITH 50000, LANNI IS EXCHNAGING FINANCIAL ASSET 236 237 THE LOAN IS DESTROYED IN THIS TRANSACTION, SINCE IT IS RETIRED, WHEN PAID 238 239 241 242 243 ... CASH BUDGET budget 45 days cycle ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss SALES BUDGET dupont ... :