PROBLEM (23 POINTS)

Use the following information to PREPARE A RATIO ANALYSIS FOR Carton Co.

The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments


$ 40,000
Accounts receivable (net)


25,000
Inventory


20,000
Property, plant and equipment


210,000


Total assets
$295,000

Liabilities and Stockholders’ Equity
Current liabilities


60,000
Long-term liabilities


85,000
Stockholders’ equity-common


150,000


Total liabilities and stockholders’ equity
$295,000

Income Statement
Net sales


$ 85,000
Cost of goods sold


45,000
Gross margin


40,000
Operating expenses


15,000
Interest expense


5,000


Net income
$ 20,000
EPS $3.33

Number of shares of common stock


6,000
Market price of common stock


$20
Total dividends paid


$5,400
Cash provided by operations


$30,000
Dividend per share $.90

Required:

Prepare a ratio analyses using the formulas presented on page 627. If a ratio not applied to Carton Co., write N/A.


Answers

Answer 1

Answer:

1. Current Ratio = Current assets / Current liabilities

= (40000+25000+20000)/60000

= 1.42

2. Quick Ratio = (Cash and short term investments + Accounts Receivable)/ Current Liabilities

= (40000+25000)/60000

= 1.08

3. Liquidity Ratio = (Cash and short term investments)/current Liabilities

= 40000/60000

= 0.67

4. Gross Profit Ratio = (Gross Profit / Net sales)*100

= 40000/85000*100

= 0.470588 * 100

= 47.06%

5. Operating Cost Ratio = (Operating Cost / Net sales)*100

= (45000+15000)/85000*100

= 70.59%

6. Operating profit Ratio = (operating profit/Net sales)*100

= (Gross Profit - Operating Expenses)/Net sales * 100

= (40000-15000)/85000*100

= 29.41%

7. Net Profit Ratio = Net Profit/Net Sales * 100

= 20000/85000*100

= 23.53%

8. Return on shareholder's Fund = Net Profit After Interest And Taxes/ Shareholders Funds * 100

= 20000/150000*100

= 13.33%

9. Return on Capital employed = Net Profit Before interest and Tax / (Total Assets - Current Liabilities)*100

= (20000+5000)/(295000-60000)*100

= 10.64%

10. Return on Total Assets = Net Profit Before interest and Tax / Total Assets * 100

= 25000/295000*100

= 8.47%


Related Questions

if you want to play kaoot the game pin is 06048390

Answers

Answer:

im the current person in 1st place

Answer:

112xjfjgjgtjjgchfjfjc

Economic Condition
The President &
The federal Reserve Monetary Roller
Fiscal polyester
Government
Rate
1. High Unemployment
Phase
Type of Policy
2. Mation
Phase:
Type of policy
3. Decreasing Production,
Phase:
Type of Policy
4. Prices increasing
Phase:
Type of Policy
5. Economy "overheating”
Phase:
Type of Policy
6. Business Inventories increasing
Rapidly
Phase
Type of Policy
7. Business Sales increasing
Phase
Type of Policy
8. Economy"Cooling or
Phase:
Type of policy
9. Credit and Borrowing Expanding
Phase
Type of Policy
10 Full Employment
Phase
Type of Policy

Answers

Explanation:

9. credit and borrowing expanding

Girl I don’t know but

You are preparing a presentation on networking for a professional development seminar that your company is hosting for its employees. You look at the attendance list and see that you have good relationships with all of the registered seminar participants. Additionally, this presentation is a follow-up presentation that was requested by previous participants. You know you will have a friendly audience.

1. What organizational pattern would be best for this situation?
a. Be brief. Use no more than three points
b. An indirect pattern with minimal audience contact
c. Any pattern, particularly with audience involvement

2. What delivery style should you use?
a. Warm, pleasant, and open
b. Even and slow speech
c. Confident, small gestures

Answers

Answer:

c. Any pattern, particularly with audience involvementa. Warm, pleasant, and open

Explanation:

As this is a follow-up presentation, it would be best to find out how the participants have fared in relation to the subject since the last presentation. For this reason, the main focus is audience involvement so any patter is fine so long as audience participation is emphasized.

The delivery style that would best work here is a warm, pleasant and open one. This would encourage audience involvement and it can be more easily pulled off because you have good relationships with all the registered participants.

Hotaling Corporation is analyzing a capital expenditure that will involve a cash outlay of $146,040. Estimated cash flows are expected to be $30,000 annually for seven years. The present value factors for an annuity of $1 for 7 years at interest of 6%, 8%, 10%, and 12% are 5.582, 5.206, 4.868, and 4.564, respectively. The internal rate of return for this investment is:

Answers

Answer:

The solution shows that a rate of return of 10% which provides an annuity factor of 4.868 generates an NPV which is equal to zero. Thus, our IRR or internal rate of return is 10%.

Explanation:

The IRR or internal rate of return is the rate at which NPV or Net Present Value of the investment becomes zero. We are provided with the initial outlay for the project and the annual cash inflows along with time period. Using the annuity factors given below, we need to find out the factor which makes the NPV zero. The NPV is calculated as follows,

NPV = Present Value of Cash Inflows - Initial Outlay

We can try out each annuity factor and see what NPV is generates.

1. 6% rate (Annuity factor = 5.582)

NPV = (30000 * 5.582)  -  146040

NPV = $21420

2. 8% rate (Annuity factor = 5.206)

NPV = (30000 * 5.206)  -  146040

NPV = $10140

3. 10% rate (Annuity factor = 4.868)

NPV = (30000 * 4.868)  -  146040

NPV = $0

So, from the above solution we can see that a rate of return of 10% which provides an annuity factor of 4.868 generates an NPV which is equal to zero. Thus, our IRR or internal rate of return is 10%

A company reported total stockholders' equity of $163,000 on its balance sheet dated December 31, 2018. During the year ended December 31, 2019, the company reported net income of $21,700, declared and paid a cash dividend of $5700, declared and distributed a 10% stock dividend with a $6700 total market value, and issued additional common stock for $33,000. What is total stockholders' equity as of December 31, 2019

Answers

Answer:

$212,000

Explanation:

Stockholders' equity  = December 31, 2018 stockholders'equity + 2019 net income - 2019 cash dividend declarations + 2019 common stock issue

Stockholders' equity = $163,000 + $21,700 - $5,700 + $33,000

Stockholders' equity = $212,000

So, the total stockholders' equity as of December 31, 2019 is $212,000

Drag each label to the correct location on the image.
Identify the features of stocks and bonds.
coupon rate
face value
closing price
maturity date
Stock
Bond

Answers

Answer:

The answer is "face value".

Explanation:

FACE VALUE was its common characteristic of stocks and bonds.

For an inventory, that original cost of stock indicated on the certification was its face value. That facial value for securities refers to the amount paid to the owner just at the expiry date.

Its book value, as well as the factor, is the distinctive function of shares, while the factor of bonds is a discount rate, duration, or factor value.

Answer:

Stock- closing price

Bond- maturity date, coupon rate, and face value

Explanation:

Got it right on the test :)

Ivanhoe uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $392000 ($596000), purchases during the current year at cost (retail) were $2095000 ($3340000), freight-in on these purchases totaled $131000, sales during the current year totaled $3040000, and net markups (markdowns) were $74000 ($110000). What is the ending inventory value at cost

Answers

Answer:

$561,580

Explanation

Particulars                                     Cost             Retail

Beginning inventory                $392,000       $596,000

Add: Purchases                       $2,095,000    $3,340,000

Add: Freight in                         $131,000

Add: Net Markups                                           $74,000  

Goods available for sale        $2,618,000     $4,010,000

Less: Net Markdowns                                     ($110,000)

Less: Sales                                                      ($3,040,000)

Estimated Ending inventory at retail           $860,000  

Cost-to-Retail percentage = Goods available for sale (Cost) / Goods available for sale (Retail)

Cost-to-Retail percentage = $2,618,000 / $4,010,000

Cost-to-Retail percentage = 0.653

Estimated ending inventory at cost = Estimated Ending inventory at retail * Cost-to-Retail percentage

Estimated ending inventory at cost = $860,000 * 0.653

Estimated ending inventory at cost = $561,580

You are given the following prices for a zero coupon bond that matures for 1 on the maturity date: Maturity DatePrice 1 year0.965 2 years0.920 3 years0.875 4 years0.825 5 years0.770 Josh and Phillip enter into a four year swap with a notional amount of 200,000. The swap has annual settlement periods. Under the swap, Josh will pay Phillip the fixed swap rate at the end of each year while Phillip will pay Josh the variable rate where the variable rate is the one year spot rate at the beginning of each year. Determine the net swap payment at the end of the first year.

Answers

Answer:

The net swap payment at the end of the first year is:

= $7,000.

Explanation:

a) Data and Calculations:

Zero coupon bond that matures for 1 on the maturity date

Maturity Date    Price

1 year                0.965

2 years             0.920

3 years             0.875

4 years            0.825

5 years            0.770

Net swap payment at the end of the first year = fixed swap rate - variable swap rate * notional principal amount

= (1 - 0.965) * $200,000

= $7,000

b) Swaps are used by entities to hedge against their exposure to interest rate fluctuations.  A swap reduces the uncertain future cash flows by allowing entities to take advantage of future market realities by revising their own debt obligations with a counterparty.  In our example, Phillip agrees to pay Josh a variable swap rate while Josh pays Phillip a fixed swap rate.  At the end of each period, the swap rates are netted off before applying the notional principal amount to arrive at the net swap payment.

The following information relates to a product produced by Orca Company: Fixed selling costs are $1,000,000 per year. Although production capacity is 500,000 units per year, Orca expects to produce only 400,000 units next year. The product normally sells for $80 each. A customer has offered to buy 60,000 units for $60 each. The customer will pay the transportation charge on the units purchased. If Orca accepts the special order, the effect on operating profits would be a:

Answers

Answer,:

increase in operating income by $840,000

Explanation:

The computation is shown below:

Offer price per unit $60

Less: Variable costs per unit:  

  Direct materials ($20)

  Direct labor ($14)

  Variable overhead ($12)

  Variable selling $0

Incremental profit per unit (a) $14

Units offered to sell (b) 60,000

Effect on Operating Income (Increase) (a × b) $840,000

Therefore, in the case when the special order is accepted, the effect on operating income would be increase by $840,000

Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,090,000. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years: Years Amount 1-6 $ 89,000 (each year) 7 99,000 8 109,000 9 119,000 10 129,000 Bruce expects to sell the restaurant after 10 years for an estimated $1,190,000. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.) Required: 1-a. Calculate the total present value of the net cash flows if Bruce wants to make at least 10% annually on his investment. (Assume all cash flows occur at the end of each year.)

Answers

Answer:

$1,048,269.38

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Cash flow in year 0 = $1-,090,000

Cash flow in year 1 = 89,000

Cash flow in year 2 = 89,000

Cash flow in year 3 = 89,000

Cash flow in year 4 = 89,000

Cash flow in year 5 = 89,000

Cash flow in year 6 = 89,000

Cash flow in year 7 = 99,000

Cash flow in year 8 = 109,000

Cash flow in year 9 = 119,000

Cash flow in year 10 = 129,000 + $1,190,000

I = 10 %

NPV = $1,048,269.38

To find the NPV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Suppose that a company needs new equipment, and that the machinery in question earns the company revenue at a continuous rate of 66000t 38000 dollars per year during the first six months of operation, and at the continuous rate of $71000 per year after the first six months. The cost of the machine is $160000. The interest rate is 5% per year, compounded continuously. a) Find the present value of the revenue earned by the machine during the first year of operation. Round your answer to the nearest cent. Value: $ equation editorEquation Editor b) Determine how long it will take for the machine to pay for itself; that is, how long until the present value of the revenue is equal to the cost of the machine. Round your answer to the nearest hundredth. Years: equation editorEquation Editor

Answers

Answer:

a-The present value of revenue in the first year is $61,085.92.

b-The total time it would take to pay for its price is 2.44 years of 29.33 months.

Explanation:

a-

Let the function of the revenue earned is given as

[tex]S(t)=\left \{ {{66000t+38000} {\ \ 0

The present value is given as

[tex]PV=\int\limits^a_b {S(t)e^{-rt}} \, dt[/tex]

Here

a and b are the limits of integral which are 0 and 1 respectivelyr is the rate of interest which is 5% or 0.05S(t) is the function of value which is [tex]S(t)=\left \{ {{66000t+38000} {\ \ 0

So the equation becomes

[tex]PV=\int\limits^0_1 {S(t)e^{-0.05t}} \, dt\\PV=\int\limits^{0.5}_0 {(66000t+38000)e^{-0.05t}} \, dt+\int\limits^{1}_{0.5}{(71000)e^{-0.05t}} \, dt\\PV=\int\limits^{0.5}_0 {(66000t)e^{-0.05t}} \, dt+\int\limits^{0.5}_0 {(38000)e^{-0.05t}} \, dt+\int\limits^{1}_{0.5}{(71000)e^{-0.05t}} \, dt\\PV=8113.7805+18764.4669+34207.6751\\PV=61085.9225[/tex]

So the present value of revenue in the first year is $61,085.92.

b-

The time in which the machine pays for itself is given as

[tex]PV=\int\limits^0_1 {S(t)e^{-0.05t}} \, dt+\int\limits^t_1 {S(t)e^{-0.05t}} \, dt\\PV=61085.9225+\int\limits^{t}_{1}{(71000)e^{-0.05t}} \, dt[/tex]

The present value is set equal to the value of machine which is given as

$160,000 so the equation becomes:

[tex]PV=61085.9225+\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt\\160000=61085.9225+\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt\\\int\limits^{t}_{0}{(71000)e^{-0.05t}} \, dt=160000-61085.9225\\\int\limits^{t}_{1}{(71000)e^{-0.05t}} \, dt=98914.07\\\\t=-\dfrac{\ln \left(0.93034\right)}{0.05}\\t=1.44496[/tex]

So the total time it would take to pay for its price is 2.44 years of 29.33 months.

A central characteristic of management by objectives (MBO) is that: Group of answer choices employees are given complete freedom to set their own goals as long as they are consistent with guidelines approved by the CEO. it assumes that management must motivate employees, since employees are incapable of motivating themselves. goals are set by top management and followed without question by others within the organization. goals are set through a process involving members of the organization.

Answers

Answer:

goals are set through a process involving members of the organization.

Explanation:

Management by objectives (MBO) refers to the management where there is a strategic management model that focuse to improve the organization performance by defining the goals & objectives and the same would be by both management and employees.

so here according to the given options, the last option is correct as it represents the characteristic of the MBO

So the same would be selected

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.

Accounts payable $598 Fees Earned $3,129
Accounts receivable 717 Insurance Expense 543
Supplies 500 Rent expense 1,500
Prepaid insurance 2,195 Land 2,773
Cash 2,002 Wages expense 651
Office equipment 1,800 Retained earnings 5,500
Dividends 701 Common stock 5,855
Unearned rent 1,600

Prepare a trial balance. The total of the debits is:

a. $11,200
b. $13,900
c. $12,700
d. $9,700

Answers

9,714 is a the answer

(1 point) Your rich uncle bequests to you a continuous, constant income stream of $6000 per year for the next 10 years. The terms of the bequest require that this income stream be paid continuously into a specific savings account that will not be available to you for 10 years. This account earns 5.2% interest, compounded continuously. What is the present value of the bequest

Answers

Answer:

The present value of the bequest is:

= $45,883.70

Explanation:

a) Data and Calculations:

Constant income stream per year = $6,000

Period of investment = 10 years

Interest rate earned = 5.2% compounded continuously

From an online calculator:

N (# of periods)  10

I/Y (Interest per year)  5.2

PMT (Periodic Payment)  6000

FV (Future Value)  0

Results

PV = $45,883.70

Sum of all periodic payments $60,000.00

Total Interest $14,116.30

The present value of the bequest is $61,178.27.

Here, we are going to use the MS Excel to determine the present value of the bequest.

Given Information

Rate = 5.2%

Nper = 10

Pmt = -8000

PV = ?

Present value of the bequest = PV(Rate, Nper, -Pmt)

Present value of the bequest = PV5.2%, 10, -8000)

Present value of the bequest = $61,178.2701

Present value of the bequest = $61,178.27

Therefore, the present value of the bequest is $61,178.27.

See similar solution here

brainly.com/question/9448396

Many unethical behaviors lead to the passage of legislation that makes those
behaviors legal.
TRUE OR FALSE

Answers

These unethical behavior examples help identify what is not considered These are just some of the many different examples of unethical behavior that could occur. Double standard which makes it unethical and causes a black eye to law .In verse 14 it says Truth has fallen in the public squares (KJ says streets. So true

Hope this helps have a great day :)

Loren is in charge of implementing a wellness program for his organization. In formulating the plans for the wellness program, Loren visits and studies a number of other businesses that have successfully implemented such programs. When it is time to actually start the program in his organization, which of the following services or benefits is Loren LEAST likely to include?

a. Smoking cessation programs
b. Nutrition and weight-loss seminars
c. Cancer treatments including chemotherapy and radiation therapies
d. Stress management workshop sessions

Answers

Answer:

c. Cancer treatments including chemotherapy and radiation therapies

Explanation:

A wellness.program is defined as a set of activities.aomed at improving the quality of life of individuals through exercise, proper diet, and stress management.

The main idea behind a wellness program is prevention of illness with a healthy routine.

In the given scenario the other options are wellness initiatives except Cancer treatments including chemotherapy and radiation therapies.

This is excluded because it is study of a full blown illness and not preventive strategies to stay healthy.

During 2019, Sunland Company expected Job no. 59 to cost $600000 of overhead, $520000 of materials, and $400000 in labor. Sunland applied overhead based on direct labor cost. Actual production required an overhead cost of $315000, $590000 in materials used, and $240000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?

Answers

Answer:

Under-absorbed overheads= $15,000

Explanation:

Over or under absorbed overhead occurs where there is a difference between absorbed overhead and actual overhead.

To determine whether overhead is over absorbed or under absorbed we follow the steps below:

Step 1 : Absorption rate

Rate = 600,000/400,000× 100= 125%

Step 2 : Absorbed overhead

Absorbed overhead= 125%×240,000=300,000

Under absorbed overheads = 315,000-300,000= $15,000

Under-absorbed overheads= $15,000

Market testing allows products to be viewed by a focus group?*
True or false

Answers

Answer:

true

Explanation:

Wilson Company reported net income of $105,000 for the year ended December 31, 2014. During the year, inventories decreased by $15,000, accounts payable decreased by $20,000, depreciation expense was $18,000 and a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2014 using the indirect method was

Answers

Answer:

$109,000

Explanation:

Particulars                                                                Amount

Net income                                                             $105,000

Add: Depreciation expense                                  $18,000

Less: Gain on disposal of equipment                   ($9,000)

Add: Inventory decrease                                       $15,000

Less: Accounts payable decrease                        ($20,000)

Net cash provided by operating activities          $109,000

A company had net income of $209800. Depreciation expense is $26500. During the year, Accounts Receivable and Inventory increased $16700 and $41500, respectively. Prepaid Expenses and Accounts Payable decreased $4500 and $5500, respectively. There was also a loss on the sale of equipment of $1900. How much cash was provided by operating activities?

Answers

Answer:

$2,000

Explanation:

Cash flow from Operating Activities

Net Income                                                         $209800

Adjustment to non-cash items :

Depreciation expense                                          $26500

Adjustment for Changes in working capital :

Accounts Receivable                                           ($16700)

Inventory increased                                             ($41500)

Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance.

Time Charges Material Loading Charges
Technicians' wages and benefits $266,000 -
Parts manager's salary and benefits - $40,000
Office employee's salary and benefits 45,600 10,500
Other overhead 22,800 28,000
Total budgeted costs $334,400 $78,500

The company desires a $35 profit margin per hour of labor and a 26.00% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $400,000.

Required:
a. Compute the rate charged per hour of labor.
b. Compute the material loading percentage.

Answers

Answer:

a. Rate charged per hour of labor = [Total Budgeted Costs (Time Charges) / Number of Hours + Profit margin]

Rate charged per hour of labor = [$334,400/7,600 + $35]

Rate charged per hour of labor = $44 + $35

Rate charged per hour of labor = $79

b. Calculation of Material Loading percentage:

= [$40,000 + $10,500 + $28,000] / $400,000

= $78,500 / $400,000

= 0.19625

= 19.63%

In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia.

Answers

Answer:

b. decrease Amazon sales

Explanation:

Note: "Options the question is attached as picture below"

In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. If we hold all else equal, the effect of this tax would be to decrease Amazon Sales In the District of Columbia.

This action will consequentially increase the sales in local Market and then discourage online shopping along with it In Columbia district; it will decrease sales overall.

Which of the following statements about indentation in formal reports is correct?
of
Select one:
O a. The first line of each single-spaced paragraph should be indented.
estion
O b. Double-spaced paragraphs do not need to be indented.
O c. There is no standard distance of indentation.
O d. Indents should be different sizes depending on whether or not the paragraph follows
an illustration.
O e. Indents should be no more than 1/2 inch.

Answers

Answer:

c. There is no standard distance of indentation.

Explanation:

The correct statement about indentation in formal reports is, " There is no standard distance of indentation."

The above information is accurate in the sense that when formatting a formal report, indenting paragraphs can be one-half inch. However, another standard method is to insert a blank line between paragraphs, thereby indenting the paragraphs will not be necessary.

Also, in some cases, indentation size dependent on the font size. For example, a formal report of 12-pt font requires an indentation of about 12 points.

trade industry short note​

Answers

An industry is a group of manufacturers or businesses that produce a particular kind of goods or services. ... Industry comes from the Latin industria, which means "diligence, hard work," and the word is still used with that meaning.

Answer:

Trade as a noun can refer to the action of buying-selling or exchanging goods and services between people, companies, countries, and other entities. ... ' It may also refer to a particular industry as in the building, tourist or fur trades. People, companies, and countries that buy and sell goods and services are traders.

Explanation:

Technician A says that a pre-2010 Cummins ISX uses a dual OHC design. Technician B says that a post-2010 Cummins ISX uses a single OHC design. Who is correct?

Answers

Answer:

B

Explanation:

The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000, is expected to last for 10 years, and produces after-tax cash flows equal to $44,503 per year. If the firm's required rate of return is 14 percent and its tax rate is 40 percent, what is the project's internal rate of return (IRR)

Answers

Answer:

17.37%

Explanation:

The Internal rate of return is the interest rate that gives the same present value as the amount of initial investment for

Calculation of IRR

($200,000) CFO

$44,503       CF1

$44,503       CF2

$44,503       CF3

$44,503       CF4

$44,503       CF5

$44,503       CF6

$44,503       CF7

$44,503       CF8

$44,503       CF9

$44,503       CF10

the project's internal rate of return (IRR) is 17.37%

On January 1, 2019, Sanders Corporation purchased equipment having a fair value of $68,301.30 by issuing a non-interest-bearing, $100,000, 4-year note due December 31, 2022. Required: Prepare the journal entries to record (1) the purchase of the equipment, (2) the annual interest charges over the life of the note, and (3) the repayment of the note.

Answers

Answer:

(1)

Jan 01, 2019

Dr. Equipment $68,301.30

Dr. Discount on note Payable $31,698.70

Cr. Note Payable $1,00,000

(2)

Dec 31, 2019

Dr. Interest Expenses $7,924.68  

Cr. Discount on note Payable $7,924.68

Dec 31, 2020

Dr. Interest Expenses $7,924.68  

Cr. Discount on note Payable $7,924.68

Dec 31, 2021

Dr. Interest Expenses $7,924.68  

Cr. Discount on note Payable $7,924.68

Dec 31, 2022

Dr. Interest Expenses $7,924.68  

Cr. Discount on note Payable $7,924.68

(3)

Dec 31, 2022

Dr. Note Payable $1,00,000

Cr. Cash $1,00,000

Explanation:

The asset is recorded at the discounted value of the note payable.

Discount on the bond = Face value of Loan note - Fair value of equipment = $100,000 - $68,301.30 = $31,698.70

Annual Interest expense = Total Discount on the bond / Numbers of years

Annual Interest expense = $31,698.70 / 4

Annual Interest expense = $7,924.68

The Note will be payable on December 31, 2022 by value of $100,000

Shareholders, customers, suppliers, and employee groups are considered
A. indirect stakeholders
B. convertible stakeholders
C. direct stakeholders
D. formal stakeholders

Answers

A is the answer... I think

Answer: its “direcr stakeholders”

Explanation: bcs it is

Explain the concept of sustainable entrepreneurship and its dimensions.​

Answers

Consider the equation.
4(pr + 1) = 64
The value of x in terms of p is
The value of x when p is -5 is

A bank loans Kellie's Print Shop $350,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is

Answers

Answer: b. an asset for the bank and a liability for Kellie's Print Shop. The loan does not increase the money supply.

Explanation:

Banks make money by loaning out money to people and companies. This means that loans are an asset to banks because it enables them to generate cash.

Kellie's Print Shop will have to pay back to loan however which means that it is a liability to them because they owe the bank.

This loan will not increase the money supply because if not explicitly stated that it does, we assume that the loan was made from bank deposits by other bank customers which means that it is already part of the money supply.

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