Answer:
$100,000
Explanation:
Novak's net income for the year will be = Total Revenue generated - Total expenses incurred
For the year 22000;
Revenue generated:
Retained earning = $124,000
Company recorded revenues for year 22000= $728,000
Total Revenue = $124,000+$728,000
Total revenue = $852,000
Expenses incurred:
Common stock for cash issued = $80,000
Expenses = $637,000
Paid dividend = $35,000
Total expenses incurred = $80,000+$637,000+$35,000
= $752,000
Net income = $852,000 - $752,009
Net income = $100,000
Novak's net income for the year 2022 is $100,000
Answer:
$2.80 per chair
$2.25 per table
Explanation:
If cost is assigned at a rate based on direct labor hours, the total disposal cost for chairs and tables is, respectively:
The respective disposal cost per unit is:
Answer:
A 10% drop in the value of invested assets would cause the value of the account to decrease by $500
Explanation:
Leverage is a way in which companies can use borrowed capital to use in an investment. The leverage stands to multiply the profits of the investments if the investment proves profitable, however if the investment registers a loss, the loss is also multiplied.
In our case;
Initial value of assets=$1,000
leverage=5:1
A 10% drop means;
Decrease in value of account before leverage=percentage drop×initial value of assets
Decrease in value of account before leverage=(10/100)×1,000=$100
If we apply a leverage of 5:1,
Account decrease after leverage=100×5=$500
A 10% drop in the value of invested assets would cause the value of the account to decrease by $500
Answer:
if there equal it becomes shift in the demand and supply curve
Explanation:
Answer:
<u>Advantages</u>
Dividends
These are payments to shareholders as a way to share the profits the company has accumulated.
This is an advantage to the issuing company because they are usually not under any obligation to pay Dividends with respect to common Equity. As a result profits can be plowed back into the company to increase profitability.
Repaid
This refers to the fact that shareholders do not have to be repaid for their investment like debt holders are. Stock Holders bought a piece of the company instead of loaning money to the company so they do not have to be paid back. This is an advantage because it frees up Cashflow for the company as well as allowing it to maintain a better credit rating due to lower debts.
Future Buy-Back
This is a clause inherent in most shares. It means that the Issuing company can choose to buy back the stock at a given time in future.
This is an Advantage because it allows the Issuing company to regain control of the company at a future date.
<u>Disadvantages</u>.
Shareholders
Shareholders are people or entities who buy shares in the Issuing company. As such, they are owners in the company and have voting rights on decisions that the company makes. This is a disadvantage because it means loss of Independence for the company who now legally have to take the opinions of shareholders into account.
Net Profit After Tax
This is money that the company has after paying off interests and then taxes. This is the money that the company retains. Having shareholders means that a company may have to pay shareholders from this amount instead of retaining all of it thereby making it at a disadvantage to the Issuing company.
One Vote per Share
This means that every shareholder has a vote for every share they hold in the company. This means that Shareholders therefore have a say in the affairs of the company. This is a disadvantage to the Issuing company because it means a loss of Independence for them when decisions need to be made.
