Answer:
Dr Interest expense $4,000
Dr Notes payable $1,120
Explanation:
The $5,120 repaid comprised of both interest and principal repayments,hence there is need for the amount to be split into the two appropriate accounts.
The interest payable on the loan on yearly basis ,based on the outstanding loan balance of $50,000 is $4,000(8%*$50,000),hence the balance of $1,120($5,120-$4,000) represents the actual repayment of principal,as a result the notes payable account should be debited with $1,120.
Explanation:
A diversified company is a type of company that has multiple unrelated businesses or products. A company may decide to diversify its activities by expanding into markets or products that are related to its current business.
For example, an auto company may diversify by adding a new car model or by expanding into a related market like trucks.
Diversified Industries covers a wide range of sub-sectors including Automotive, Transport & Logistics, Building Materials & Construction, Capital Goods, Business Services, Metals and Oil Field Services. Even the way industrial products are developed, manufactured and commercialized is changing. I would say the answer is <u>True</u>
Answer:
Current ratio for 2022: 0.311
Current ratio for 2021: 0.231
Explanation:
The current ratio is a liquidity ratio that indicates a company's ability to pay its current liabilities when they come due. The current ratio is calculated by the following formula:
Current Ratio = Total Current Assets/Total Current Liabilities
In Bob Evans Farms:
Current ratio for 2022 = $80,200/$257,500 = 0.311
Current ratio for 2021 = $71,809/$311,100 = 0.231
Answer:
r = 11.55%
Explanation:
Given that,
Annual dividend paid last week, D1 = $2.50
Dividend growth rate, g = 8%
current price of common stock = $76
Stock price = D1 ÷ (r - g)
$76 = [$2.50 × (1 + 8%)] ÷ (r - 8%)
$76 = 2.7 ÷ (r - 8%)
(r - 8%) = 0.0355
r = 0.0355 + 0.08
= 0.1155 × 100
= 11.55%
Therefore,
Return, r = 11.55%
Answer:
$40,000.
Explanation:
Given that Charco purchased a franchise from Burger Master on January 1, 2021, for $240,000
Useful life of Franchise = 6 years
Cost = $240,000
Yearly amortization expense = cost/useful life
= $240,000/6
= $40,000
The amortization expense for the year ended December 31, 2021 is $40,000. This is the yearly charge to p/l for the Franchise.
