Answer:
$88,920
Explanation:
capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920
Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.
<h3><u>
Full Question:</u></h3>
Which of the following actions will help to ensure that formal business documents are trustworthy?
A: Using a wide variety of charts and tables
B: Putting the decision-related information first
C: Getting information from reliable sources
D: Requiring a password to open the document
Getting information from reliable sources will help to ensure that formal business documents are trust worthy.
<h3><u>
Explanation:</u></h3>
Business documents refers to the record, books, files, plants, correspondence, reports, documentation,etc and details associated with the financing activities of the business. They can be in the form of paper works, electronic format, etc. It is very essential for any business to contain these information that can be handed over to the stakeholders, public,etc when any issues occurs financially or legally.
There are many things that are to be followed while preparing these documents. The information that are included in this document must be collected from reliable sources. This is because it should not be proven to be false during any legal or financial issues.
Let understand that the organized table are intended to calculate missing numbers on Income Statement for the two companies are drawn below.
- Here, we are calculating missing columns for Monty Corp. and Whispering Winds Corp.
- Also understand that the bold numbers are the columns calculated according to the question.
Particulars Monty Corp. Whispering Winds Corp.
Sales revenue $90,000 $111,000
Sales return and allowance <u>$6,000</u><u> </u> <u>$5,000</u>
Net sales $84,000 $106,000
Cost of goods sold <u>$53,760 </u> <u>$65,720</u><u> </u>
Gross profit $30,240 $40,280
Operating expenses <u>$15,120 </u> <u>$19,080 </u>
Net income <u>$15,120</u><u> </u> <u>$21,200</u>
In conclusion, the formulae used to derived the bolded answers are:
- Sales revenue - Net sales = Sales returns and allowance
- Net sales - Cost of goods sold = Gross profit
- Gross profit - Operating expenses = Net income
- Net sales + Sales return and allowance = Sales revenue
- Net sales - Gross profit = Cost of goods sold
- Gross profit - Net income = Operating expenses
See similar solution here
<em>brainly.com/question/15062414</em>
Answer:
a. 9.07%
b. 5.93%
c. 12.07%
Explanation:
Dividend valuation method is used to calculate the the value of stock based on the dividend paid, its growth rate and rate of return.
Stock Price = Dividend / ( Rate of return - Growth rate )
a.
$27 = $1.64 / ( Rate of return - 3% )
Rate of return - 0.03 = $1.64 / $27
Rate of return - 0.03 = 0.0607
Rate of return = 0.0607 + 0.03
Rate of return = 0.0907 = 9.07%
b.
$27 = $1.64 / ( 12% - Growth rate )
0.12 - Growth rate = $1.64 / $27
0.12 - Growth rate = 0.0607
Growth rate = 0.12 - 0.0607
Growth rate = 0.0593 = 5.93%
c.
$27 = $1.64 / ( Rate of return - 6% )
Rate of return - 0.06 = $1.64 / $27
Rate of return - 0.06 = 0.0607
Rate of return = 0.0607 + 0.06
Rate of return = 0.1207 = 12.07%
Answer:
The value of all future payments discounted by the interest rate
Explanation:
Since the purchase of the asset is by installments to be paid in the future. The present value to be recognized is the sum of the future payments discounted at the predetermined interest rate.
The first payment due now will not have to be discounted but future payments will have to be discounted to ascertain the present value of the asset to be recognized in the balance sheet.
