DMACC Liquidity Debt and Equi

Liquidity, Debt, and Equity

For this discussion, assume the role of an investor. How would you know whether the company you are considering to invest in has repurchased any of its own stock and/or issued stock dividends during the current period? Why is this important, and would you find any of this information on the statement of cash flows? What level of liquidity and solvency would you be looking for? Why? In addition, include a summary of a current Wall Street Journal article that discusses an organization that recently repurchased its stock or issued a stock dividend.

Tip: Consider the footnotes in your reply.

DISCUSSION PARTICIPATION SCORING GUIDE

PARTICIPATION GRADING RUBRIC

Criteria Non-performance Basic Proficient Distinguished
Applies relevant course concepts, theories, or materials correctly.

Does not explain relevant course concepts, theories, or materials. Explains relevant course concepts, theories, or materials. Applies relevant course concepts, theories, or materials correctly. Analyzes course concepts, theories, or materials correctly, using examples or supporting evidence.
Collaborates with fellow learners, relating the discussion to relevant course concepts.

Does not collaborate with fellow learners. Collaborates with fellow learners without relating discussion to the relevant course concepts. Collaborates with fellow learners, relating the discussion to relevant course concepts. Collaborates with fellow learners, relating the discussion to relevant course concepts and extending the dialogue.
Applies relevant professional, personal, or other real-world experiences.

Does not contribute professional, personal, or other real-world experiences. Contributes professional, personal, or other real-world experiences, but lacks relevance. Applies relevant professional, personal, or other real-world experiences. Applies relevant professional, personal, or other real-world experiences to extend the dialogue.
Supports position with applicable knowledge.

Does not establish relevant position. Establishes relevant position. Supports position with applicable knowledge. Validates position with applicable knowledge.

Issuing Bonds

For this discussion, assume the role of a business owner who has to make a decision to raise additional capital. What considerations would you evaluate relative to issuing bonds as compared with conventional financing methods? How would you reflect the bond transactions on your statement of cash flows, and how would the financial statement users use that information?

DISCUSSION PARTICIPATION SCORING GUIDE

DISCUSSION PARTICIPATION GRADING RUBRIC
Criteria Non-performance Basic Proficient Distinguished
Applies relevant course concepts, theories, or materials correctly.

Does not explain relevant course concepts, theories, or materials. Explains relevant course concepts, theories, or materials. Applies relevant course concepts, theories, or materials correctly. Analyzes course concepts, theories, or materials correctly, using examples or supporting evidence.
Collaborates with fellow learners, relating the discussion to relevant course concepts.

Does not collaborate with fellow learners. Collaborates with fellow learners without relating discussion to the relevant course concepts. Collaborates with fellow learners, relating the discussion to relevant course concepts. Collaborates with fellow learners, relating the discussion to relevant course concepts and extending the dialogue.
Applies relevant professional, personal, or other real-world experiences.

Does not contribute professional, personal, or other real-world experiences. Contributes professional, personal, or other real-world experiences, but lacks relevance. Applies relevant professional, personal, or other real-world experiences. Applies relevant professional, personal, or other real-world experiences to extend the dialogue.
Supports position with applicable knowledge.

Does not establish relevant position. Establishes relevant position. Supports position with applicable knowledge. Validates position with applicable knowledge.

Readings

In your Financial Accounting textbook, read:

  • Chapter 10, “Reporting and Interpreting Bonds,” pages 498–527.
  • Chapter 12, “Statement of Cash Flows,” pages 588–620.
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