Answer:
b. Debit Petty cash $200 and credit cash $200
Explanation:
Based on the information given we were told that the Company decided to establish petty cash fund that has a beginning balance of the amount of $200 which means that journal entry to record establishing the account will be:
Dr Petty cash $200
Cr Cash $200
Schraeder Corporation has 20,000 shares outstanding at $30 each. The firm expects to raise $200,000 via a rights offering at a subscription price of $25. How many rights are required for each new share?
Answer:
3 right/shares
Explanation:
Price per unit of shares issued under “Rights issue” = Total proceeds from rights issue/ Subscription price of share issued under rights issue = 200,000 / $25 = 8,000
Number of new shares = 8,000
Original number of shares = 20,000
Thee number of rights required for each new share = Original number of shares / Number of new shares = 20,000 / 8,000 = 2.5 = 3 right/shares (approx)
A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 15 percent, and if equity investors require a 19 percent rate of return, what is the fair price of the stock
Answer:
$57.50
Explanation:
fair value = dividend(1 + growth rate) / required rate of return - long run growth rate
$2(1.15) / 0.19 - 0.15 = $57.50
Amazon leased equipment from United Machines on July 1, 2020, in a finance lease. The present value of the lease payments discounted at 10% was $82,000. Ten annual lease payments of $12,000 are due each year beginning July 1, 2020. United Machines had constructed the equipment recently for $66,000. How much related interest revenue will United Machines record for the year ending December 31, 2020
Answer: $3,500
Explanation:
A payment of $12,000 had been made on the 1st of July already so the lease value would have reduced to;
= 82,000 - 12,000
= $70,000
Interest on this is;
= 10% * 70,000
= $7,000
However, only half a year have passed yet the $7,000 is for a year so by the accrual principle only the insurance for half a year should be recognized;
= 70,000 * 6/12 months
= $3,500
Consumption spending is:__________ A. spending by households, businesses, and government on all goods used up within one year. B. spending by individuals and households on both durable and nondurable goods. C. spending on goods and services by heads of households. D. spending by individuals and households on only nondurable goods, since they are used up quickly.
Answer:
b. spending by individuals and households on only non-durable goods.
Explanation:
Consumption spending is spending by individuals and households on only non-durable goods. Consumption is a component of GDP which includes spending on goods and services by individuals and households as it includes non-durable as well as durable goods on the basis of consumption patterns.
If the volume of sales is $7,000,000 and sales at the break-even point amount to $4,800,000, the margin of safety is 45.8%.
A. True
B. False
Consider the following cash flows: Year Cash Flow 0 –$ 33,000 1 13,400 2 18,300 3 10,800 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
14.23%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = –$ 33,000
Cash flow in year 1 = 13,400
Cash flow in year 2 = 18,300
Cash flow in year 3 = 10,800
IRR = 14.23%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Grant, Inc., is a fast growth stock and expects to grow at a rate of 25 percent for the next four years. It will then settle to a constant-growth rate of 10 percent. The first dividend will be paid out in year 3 and will be equal to $5.00. If the required rate of return is 18 percent, what is the current price of the stoc
Answer:
the current price of the stock is $50.59
Explanation:
The computation of the current price of the stock is shown below:
= $5.00 ÷ (1 + 18%)^3 + ($5.00 × (1 + 25%)) ÷ (1 + 18%)^4 + (($5.00 × (1 + 25%) × (1 + 10%)) ÷ (18% - 10%)) ÷ (1 + 18%)^4
= $50.59
Hence, the current price of the stock is $50.59
The same is to be considered by taking all the things given in the question
Balonek Inc.'s contribution margin ratio is 57% and its fixed monthly expenses are $41,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $112,000
Answer:
The estimated net operating income in a month is $22,840
Explanation:
The computation of the net income is shown below:
= Contribution margin Ratio × Sales - Fixed cost
= 57% × $112,000 - $41,000
= $63,840 - $41,000
= $22,840
hence, the estimated net operating income in a month is $22,840
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Nash's Trading Post, LLC began the year by issuing $75000 of common stock for cash. The company recorded revenues of $725000, expenses of $625000, and paid dividends of $35000. What was Nash's,LLC net income for the year
Answer:
$100,000
Explanation:
Net income is the income available to a company after the deduction of expenses.
With regards to the above, we will calculate the net income as ;
Net income = Revenue recorded - Expenses.
Give that;
Revenue recorded = $725,000
Expenses = $625,000
Net income = $725,000 - $625,000
Net income = $100,000
Therefore, Nash's LLC net income for the year is $100,000.
An insurance settlement of $2.5 million must replace Trixie Eden's income for the next 45 years. What income will this settlement provide at the end of each month if it is invested in an annuity that earns 7.5%, compounded monthly
Answer:
$16,184.66
Explanation:
The computation of the income that needed at the end of the each month is shown below:
Here we use the PMT function
Given that
Present value = $2,500,000
NPER = 45 × 12 = 540
RATE = 7.5% ÷ 12 = 0.625
FV = $0
The formula is shown below:
= PMT(RATE;NPER;-PV;FV;TYPE)
After applying the above formula
The present value comes in negative
The monthly payment is $16,184.66
Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $5.10 per share. If the required return on this preferred stock is 6.5%, at what price should the preferred stock sell
Answer:
PV = $78.46153 rounded off to $78.46
Explanation:
A perpetuity is an unlimited series of cash flows that are of constant amount and occur after equal intervals of time. As they are unlimited in number, we say that they are perpetual. A perpetual preferred stock can also be said to be in form of a perpetuity as it pays a constant dividend after equal intervals of time. To calculate the price of the preferred stock, we use the present value of perpetuity formula which is,
PV = Cash flow / r
Where,
r is the required rate of returnPV = 5.1 / 0.065
PV = $78.46153 rounded off to $78.46
or unstructured organizational decisions, few or no procedures to follow for a given situation can be specified in advance. True False
Answer:
True
Explanation:
unstructured organizational can as well be regarded as "decentralized organization" it can can simply explained as one with little bureaucratic or hierarchical structure. In an unstructured organizational decision, the decision maker needs to make provision for insight and evaluation for the problem definition, because in this unstructured organizational decision every decision is crucial and there is no or little procedures to follow in making these decisions. It should be noted that in unstructured organizational decisions, few or no procedures to follow for a given situation can be specified in advance.
How does the fraction of millennials with at least $100,000 in retirement compare to the portionof millennials who have no retirement savings?
Answer:
Explanation:
We can tell that there exist almost or around 4 times as many Millenials who have been able to save absolutely nothing, compared to the ones that were able to save, or have up to or more than $100,000.
This means only 1 in 4 millenials have up to or more than $100,000
The fraction of millennials with at least $100,000 in retirement compared to the portion of millennials who have no retirement savings is 1:4.
According to some articles, a survey was conducted that showed that millennials usually save money. It was noted that about 59% have $15000 or more in their account.
Also, it was found that one in four millennials have $100000 or more on their account. This means that one in every four millenials has up to $100,000 or more in savings.
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