Answer:
a. The amount of stockholders' equity of ExxonMobil is $105 billion.
b. The amount of total assets of Citigroup is $1,434 billion
c. The amount of total liabilities of Amazon.com is $2.96 billion.
d. The amount of the change in stockholders' equity of Nike is $0.74 billion
Explanation:
We will the accounting equation to answer the question
Accounting Equation
Total Assets = Total Equity + Total Liabilities
a.
ExxonMobil
Where
Total assets = $196 billion
Total liabilities = $91 billion
Placing values in the equation
$196 billiom = Total Equity + $91 billion
Total Equity = $196 - $91 billion
Total Equity = $105 billion
b.
Citigroup
where
Total liabilities = $1,340 billion
Stockholders' equity = $94 billion
Placing values in the equation
Total Assets = $94 billion + $1,340 billion
Total Assets = $1,434 billion
c.
Amazon.com
Where
Total assets = $3.1 billion
Total stockholders' equity = $0.14 billion
placing values in the equation
$3.1 billion = $.14 billion + Total Liabilities
Total Liabilities = $3.1 billion - $.14 billion
Total Liabilities = $2.96 billion
d.
Nike
Change in Assets = Change in equity + Change in liabilities
Where
Increase in assets = $1.04 billion
Increase in liabilities = $0.3 billion
Placing values in the equation
$1.04 billion = Change in equity + $0.3 billion
Change in equity = $1.04 billion - $0.3 billion
Change in equity = $0.74 billion
Damian invests $5,000 today in an account earning 6% per year. How much is the investment worth in 4 years
Answer:
$6,312
Explanation:
The amount that the investment will be worth in 4 years is known as the future value. We compound the Present Value using the interest rate to determine the future value.
Note : Here I will use a financial calculator to compute the future value
PV = $5,000
r = 6 %
P/yr = 1
n = 4
Pmt = $0
Fv = ?
Thus, the investment will be worth $6,312 in 4 years.
Rose Riley's parents have booked and paid for a family trip to Aspen, Colorado, during her spring break. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose needs to decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her friends on the trip to Destin include each of the following EXCEPT:_________
a) her contribution to gas money for the drive to Destin.
b) the ski lift ticket her parents have already purchased for her.
c) her parents' anger if she skips the family trip to Aspen.
d) the hotel costs she will split with her friends in Destin.
Answer:
b) the ski lift ticket her parents have already purchased for her
Explanation:
Opportunity Cost is always included in decision making. It is said to be the amount or value of the best alternative that is forgone e.g. choosing Dubia over Vegas, the opportunity cost is that which is lost or forgone from not picking Vegas. Firms and individuals do make or take decision about what economic activites or project they want to be involved in. This analysis describes how choices are selected or made and how they could be worked on.
It is the most thoughtful alternative given up as the result of a decision taken or made.
c. During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,281 receivable from a bankrupt customer has not been written off but was considered in the determination of the appropriate year-end balance of the Allowance for Bad Debts account balance. What is the effect of write-off on 2019 net income
Answer:
Tabor
The effect of the write-off of the bad debt or uncollectible is a reduction of the 2019 net income by $1,281.
Explanation:
The write-off of the bad debt also reduces the Allowance for Bad Debts account balance and the Accounts Receivable balance in the account of Tabor by $1,281. The purpose is to accurately report Tabor's net income by taking into account all expenses and losses, just as all revenues and incomes must be accounted for. This gives a more accurate picture of Tabor's financial performance during the current financial period.