Answer:
Revenues that are legally restricted for expenditure on specified operating purposes should be accounted for in special revenue funds including
- Pension trust fund revenues
- Endowment where the investment earnings are to be used for public purposes.
- Accumulation of resources for payment of general long-term debt principal and interest.
Explanation:
There are two main reasons for restricting funds legally. It is either for use to accomplish a specific program or to be appropriated at a time in the future.
Pensions are designated to be paid out to the recipients in the future. To achieve these, a certain percentage of their earnings is legally restricted and accounted for in Pension Trust Fund revenues.
Endowment funds is predominant in NGOs where the investment earnings are to be used for public purposes.
Relevant financial institutions can work mutually with a company to accumulate resources for payment of general long-term debt principal and interest.
<span>First we must determine the cost of goods sold during November. For this we use beginning inventory ($368,000) + purchases ($217,500) - ending inventory ($226,750). This gives us a total cost of goods sold for November of $358,750.
Then, we take the net sales ($1,000,000) minus the cost of goods sold ($358,750) which equals our gross profit of $641,250.
Finally we divide gross profit ($641,250) by net sales ($1,000,000) to determine the gross profit rate to be 64.125%</span>
Answer:
$0.9
Explanation:
Data provided in the question:
Earnings after taxes = $108,750
Interest expense for the year = $20,000
Preferred dividends paid = $18,750
Common dividends paid = $30,000
Common stock outstanding = 100,000 shares
Now,
Earning available on common stock
= Earnings after taxes - Preferred dividends paid
= $108,750 - $18,750
= $90,000
Therefore,
Earnings per share on the common stock
= Earning available on common stock ÷ Common stock outstanding
= $90,000 ÷ 100,000
= $0.9
Answer:
PV= $81,947.83
Explanation:
Giving the following information:
Future value= $95,000
Interest rate= 0.03
Number of periods= 5
To calculate the initial investment required to reach the objective, we need to use the following formula:
PV= FV/(1+i)^n
PV= 95,000/(1.03^5)
PV= $81,947.83
Answer:
The answer is $86,167.57 (to 2 decimal places)
Explanation:
In this question, we are to calculate the present value of a certain amount that is compounded semiannually, and after 10 years, yields a future value of $200,000. To calculate this, we will use the formula for calculating present value as follows:
PV = FV ÷ 
where:
PV = present value = ???
FV = future value = $200,000
r = interest rate in decimal = 8.6% = 0.086
n = compounding period pr year = semiannually = 2
t = time of compounding in years = 10
Therefore,
PV = 200,000 ÷ 
PV = 200,000 ÷ 
= $86,167.57
