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34kurt
2 years ago
7

sand key development company estimates that it will generate an operating income of $3.25 million. which financing option should

sand key use?
Business
1 answer:
Nataly_w [17]2 years ago
5 0

The financing option that the sand key development company should use is the equity financing option. The correct option is c.

<h3>What is financing?</h3>

A firm or business gets funded through financing through this technique. On interest rates, this is stated. Banks handle financing; they give businesses funds and charge them an interest in exchange.

Equity financing is when you increase the money of the company by sharing the shares of the company with the shareholders or new investors. The investors use the stake minority.

Thus, the correct option is c, The equity financing option.

To learn more about financing, refer to the link:

#SPJ4

The question is incomplete. Your most probably complete question is given below:

We don't have enough information to answer this.

Sand Key is indifferent between the two options.

The equity financing option.

The debt financing option.

They should abandon plans for expansion.

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You just sold 500 shares of Wesley, Inc. stock at a price of $30.92 a share. Last year, you paid $32.04 a share to buy this stoc
Vitek1552 [10]

Answer:

-$560

Explanation:

The computation of capital gain on this investment is shown below:-

Capital gain = (Stock price - Paid shares) × Sold shares

where,

The Stock price is $30.92

Paid shares is $32.04

And, the sold shares is 500 shares

Now placing these values to the above formula

So, the capital gain on this investment is

= ($30.92 - $32.04) × 500

= -$1.12 × 500

= -$560

5 0
3 years ago
Gilbert Company made an ordinary repair to a delivery truck during 2016 at a cost of $500 and capitalized the repair cost. What
Leto [7]

Answer:

The answer is:

Asset will be overstated

Net income will be overstated

Explanation:

Because of the incorrect capitalization(the process of converting or adding to a firm's asset):

1. Assets are overstated. Assets that shouldn't are added to the entire assets are added. So it's increasing the company's asset whereas it's not.

2. Net income are overstated. Because depreciation too will have to be charged for the asset that wasn't there, therefore, net asset will be overstated.

7 0
3 years ago
Informal logic is __________.
Kobotan [32]
Its the study of formal validity without a focus on everyday usages of critical thinking
5 0
4 years ago
Brady corp. is considering the purchase of a piece of equipment that costs $20,000. projected net annual cash flows over the pro
katovenus [111]

Answer:

B

Explanation:

Payback period is the total time it takes an organization to recover the initial capital incurred in acquiring an asset.

It is expressed in years and fraction of years.

Initial investment    20,000

Year 1                                                 3000               17000

Year 2                                                 8000               9000

Year 3                                                 15,000

9000/15000= 0.6 years

The payback period = 2.6 years

5 0
4 years ago
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2
Amiraneli [1.4K]

Answer:

Predetermined manufacturing overhead rate= $42 per direct labor hour

Explanation:

Giving the following information:

Estimated manufacturing overhead= $924,000

Estimated direct labor hours= 22,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 924,000/22,000

Predetermined manufacturing overhead rate= $42 per direct labor hour

4 0
3 years ago
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