Crucial to the supply chain of any business, logistics involves the timely delivery of freight and goods from one place to another, as well as the unloading and unpacking of this cargo. Logistics workers may perform duties including inventory control, pricing and ticketing, and merchandise assembly.
Answer:
a A. Thomas invests $2,000 in her business.
DOES NOT QUALIFY AS A BUSINESS TRANSACTION, THIS QUALIFIES AS AN INVESTMENT TRANSACTION
Explanation:
Business transactions must involve two distinct parties, and must result in the exchange of goods or services. Thomas invested on he business, and that is considered an investment transaction, not a business transaction.
b A. Thomas purchases a computer system on account to be used in her business. QUALIFIES AS BUSINESS TRANSACTION, INCREASES ASSETS AND LIABILITIES
c A. Thomas gives an $800 quote to a potential client for services requested.
QUALIFIES AS BUSINESS TRANSACTION, INCREASES REVENUE AND INCOME
d A. Thomas writes check 1002 out of the business checking account to pay the first month's rent on the space her business is leasing. QUALIFIES AS BUSINESS TRANSACTION, INCREASES EXPENSES AND REDUCES INCOME
Answer: $322,000
Explanation:
Consolidated income = Net income from Ackerman + Net Income from Brannigan + Excess depreciation - Amortization of unpatented tech - Gain from transfer of equipment
Excess depreciation = New depreciation of equipment - Old depreciation
Depreciation is straight line;
= (200,000/5 years) - (110,000/5)
= $18,000
Gain from transfer of equipment
= Sales - Book value
= 200,000 - 110,000
= $90,000
Consolidated income = 300,000 + 98,000 + 18,000 - 4,000 - 90,000
= $322,000
Answer:
A. Stockholders equity at the end is $493,000.
B. Closing total assets is $865,000.
C. Closing liability is $410,000.
Explanation:
A. Closing total assets:
= Opening assets + increase in assets
= $845,000 + $177,000
= $1,022,000
Closing liability:
= Opening liability - Decrease in liability
= $600,000 - $71,000
= $529,000
Closing equity:
= Closing assets - Closing liability
= $1,022,000 - $529,000
= $493,000
B. Opening equity:
= Opening assets - Opening liability
= $845,000 - $600,000
= $245,000
Closing assets:
= Opening assets + increase in liability - Decrease in equity
= $845,000 + $92,000 - $72,000
= $865,000
C. Closing liability:
= Opening liability - decrease in assets - increase in equity
= $600,000 - $90,000 - $100,000
= $410,000
Total capital = 10 + 8 + 2 = 20 Million
Weight of bonds (Wd) = 10/20 = 0.5
Weight of preferred stock(Wp) = 2/20 = 0.1
Weight of stock equity(We) = 8/20 = 0.4
Cost of debt = YTM of the bonds issued (We assume its annual coupon)
YTM =rate(nper,pmt,pv,fv) in excel =rate(20,60,-950,1000) = 6.4521%
Cost of debt after tax(Rd) = 6.4521*(1-0.34) = 4.2584%
Cost of preferred shares (Rp) = Preferred dividend/ price = 2.5/25 = 0.10 =10%
Cost of equity (Re) = Rf + beta*(Rm-Rf) = 3.5 + 1.2*(13-3.5) =14.9%
WACC = Wd*Rd + Wp*Rp + We& Re
WACC = 0.5*4.2584% +0.1*10% + 0.4*14.9% = 9.089 = 9.09%