All categories

1 year ago

Tracing a test count to the inventory compilations provides evidence for which asb balance assertion?

1 answer:

8 0

The additional expenses required in order to avoid keeping currency during periods of inflation are known as shoe leather costs.

<h3>What do you know about holding cash?</h3>

The reasons for keeping cash are pretty straightforward. Cash inflows and outflows may balance each other out, or the outflows occasionally exceed the inflows. Hence, to cover up these eventualities, organizations hold cash to meet certain unpredictable situations.

The term "transaction motive" refers to the need for cash that a business has for ongoing operations. In general, the business needs cash to pay employees' salaries, rent, pay for labor, acquire items, and other expenses. On the receiving side, the business receives money from customers, debtors, and other sources. The inflows and outflows do not always coincide. As a result, the company keeps some cash on hand to fill this shortfall.

To know more about holding cash, visit:

brainly.com/question/15522054

#SPJ4.

You might be interested in

Kkkkkkkkkkkkkkkkkk<br>kkkkkkkkkkkkkkkkkkk

DedPeter [7]

it is correc tbecuas it is that why it is a

3 0

2 years ago

Lori wants to give her daughter $25,000 in 8 years to start her own business. How much should Lori invest today, at an annual in

Dovator [93]

The amount of money that Lori should invest today is $13,506.72.

<h3>How much should Lori invest today?
</h3>

In order to determine the amount of money that Lori should invest today, the present value of $25,000 has to be determined. Present value is the sum of discounted cash flows.

Present value = $25,000 / (1.08^8) = $13,506.72

To learn more about present value, please check: brainly.com/question/26537392

#SPJ1

7 0

2 years ago

Wayne, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and no debt. The stock sell

kompoz [17]

Answer:

a-1. Calculate the new book value per share.

current book value = stocks outstanding x book value = 5,000,000 x $10 = $50,000,000

new book value = $50,000,000 + $50,000,000 = $100,000,000

new stocks issued = $50,000,000 / $40 = 1,250,000

total stocks outstanding = 5,000,000 + 1,250,000 = 6,250,000

new book value per stock = $100,000,000 / 6,250,000 = $16

a-2. Calculate the new EPS.

old EPS = $4,000,000 / 5,000,000 = $0.80 per stock

new EPS = $4,850,000 / 6,250,000 = $0.776 per stock

a-3. Calculate the new stock price.

price to earnings ratio = $40 / $0.80 = 50

new stock price:

50 = new stock price / $0.776

new stock price = 50 x $0.776 = $38.80

a-4. Calculate the new market-to-book ratio.

market to book ratio = market capitalization / book value = $242,500,000 / $100,000,000 = 2.425

b. What would the new net income for the company have to be for the stock price to remain unchanged?

0.8 = net income / 6,250,000

net income = 6,250,000 x 0.8 = $5,000,000

4 0

3 years ago

A borrower sued a foreclosure consultant for violating the mortgage foreclosure consultant law. the borrower may receive actual

lesya692 [45]

The borrower may be awarded real losses, legal expenses, and, in extreme situations, the credit may be extended.

<h3>What is foreclosure consultant?</h3>

A person who stops the sale of foreclosure is called as foreclosure consultant. He, directly or indirectly, makes a solicitation, representation, or offer to an owner to perform for the act of foreclosure.

A borrower filed a lawsuit against a foreclosure consultant for breaking the mortgage foreclosure consultant legislation. The borrower may be awarded actual damages, legal charges, and credit may be extended in exceptional cases.

Therefore, it can be concluded that credit expansion can be done in some of the cases for violating the mortgage.

Learn more about mortgage here:

brainly.com/question/13447700

#SPJ4

6 0

1 year ago

A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves

BlackZzzverrR [31]

Answer:

$11.98

Explanation:

A share of common stock just made a dividend payment of $1.00

The expected long-run growth rate of for this stock is 5.4%

= 5.4/100

= 0.054

The investors required rate of return is 14.2%

= 14.2/100

= 0.142

The first step is to calculate the dividend year 1(D1)

D1= Do(1+g)

= 1(1+0.054)

= 1×1.054

= $1.054

Therefore, the stock price can be calculated as follows

Po= D1/(rs-g)

= 1.054/(0.142-0.054)

= 1.054/0.088

= $11.98

Hence the Stock price is $11.98

3 0

3 years ago