Answer:
$171,941
Explanation:
Cash out = $921,941. 2. Interest earned by the investment = $171,941.
Answer:
d. Supply is perfectly elastic.
Explanation:
Perfectly elastic supply is when a change in price causes supply to fall to zero.
The supply curve is usually an horizontal line.
I hope my answer helps you
Answer:
The company’s target debt-equity ratio is 1.16 : 1
Explanation:
Percentage flotation costs = 1 - (14100000/14100000 + 735000)
= 1 - (14100000/14835000)
= 4.95%
We know that:
(1 + Debt/Equity)*4.95% = 0.071 + 0.031*(Debt/Equity)(Percentage flotation cost equation)
0.0495 + 0.0495*(Debt/Equity) = 0.071 + 0.031*(Debt / Equity)
0.049545*(Debt/Equity) - 0.031*(Debt/Equity) = 0.071 - 0.0495
0.018545*(Debt/Equity) = 0.021455
Debt/Equity = 0.021455/0.018545
Debt / Equity = 1.16 : 1
Therefore, The company’s target debt-equity ratio is 1.16 : 1
Answer:the adjustment to record bad debts for the period will require a
Debit on
Bad debt expenses for $ 12,670 and a credit To Allowance for doubtful accounts for $ 12,670
Explanation:
Account receivables for uncollectibles= $13,900
Allowance for Doubtful Accounts = credit balance of $1230
Adjusting entry for bad debts expense =Account receivables - credit balance of $1230
= $13,900- $1,230
=$12,670
Adjusting entry for the record of bad debts expense
Accounts titles Debit Credit
Bad debt expenses $ 12,670
To Allowance for doubtful accounts $ 12,670