Answer:
1.Jan 01 Dr Cash 360,000
Cr Notes payable 340,000
2.Interest expense 28,800
Principal Reduction 61,364
Explanation:
MM Co.
1 . Journal entry
Since MM Co. borrows $360,000 cash on January 1 from a bank this means we have to
Debit Cash with the amounts of money he borrowed which is $360,000 and Credit Notes Payable with the same amount.
Jan 01 Dr Cash 360,000
Cr Notes payable 340,000
2. Calculation of the amount goes toward interest expense and Principal reduction
Interest expense 28,800
(360,000*8%)
Principal Reduction 61,364
(90,164-28,800)
The computation shows that the amount that will be made will be $420.
<h3>How to compute the value?</h3>
From the information, it was stated that a particular plot of land can produce 700 kg of beef per hectare. beef sells for $4/kg.
It was then stated that if that land is converted to producing corn, which sells for $0.15/kg, approximately how much will the farmer make selling corn.
The amount made will be:
= 700 × 4 × 0.15
= 700 × 0.6
= $420
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Answer:
Balance of Harrison's Investment in Puckett's Financial Records
= $2,905,000
Explanation:
To calculate the balance of Harrison's account in Puckett's financial records the following steps are applied.
Step 1: Calculate the percentage of reported Income that accruees to Harrsion in Puckett
=Reported Net Profit x Percent Investement of Harrison in Puckett
= $580,000 x 0.40= $232,000
Step 2: Calculate the Dividend Accrued to Harrison's Common Stok basd on the $3 dividend per share declared
= Total Number of Shares for Harrison x $3
=99,000 Shares x $3= $297,000
Final Step: Calcuate the balance of Harrision's Investment in Puckett
= Amount paid for 99,000 stock + Percentage of Reported Income Accrued to Harrison- Harrison's portion of Dividend declared
= $2,970,000 + $232,000- $297,000
= $2,905,000
Answer:
1. Operating plan.
2. Operating plan.
3. Financial plan.
4. Dividend policy.
5. B and C.
Explanation:
1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.
2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.
3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.
4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.
Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.
Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.
Hence, the following statements are true about financial planning;
I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.
II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.
The answer is False. Please make my answer the brainliest answer
