Answer: See explanation
Explanation:
The journal entry will be prepared thus:
May 31:
Dr Fees earned $1,150,000
Dr Retained earnings $16,200
Cr Rent Expense $200,000
Cr Supplies expense $19,300
Cr Wages expenses $915,000
Cr Miscellaneous expense $31,900
May 31:
Dr Retained earnings $5000
Cr Dividend $5000
Answer:
Fixed cost per units= $2.14
Explanation:
Giving the following information:
Rent= $5,000
Direct labor= $2,500
Usually, direct labor is a variable cost that varies with production.<u> In this case, I will consider it a fixed cost.</u>
F<u>irst, we need to calculate the total fixed costs:</u>
Total fixed cost= 5,000 + 2,5000= 7,500
<u>Now, the fixed cost per unit:</u>
Fixed cost per units= 7,500/3,500
Fixed cost per units= $2.14
Answer:
The correct answer is d. liquid financial assets that for tax purposes must be reinvested in the firm if not distributed as dividends to shareholders.
Explanation:
One of the variables that best measure a company's financial capacity is free cash flow (FCF). It consists of the amount of money available to cover debt or distribute dividends, once payment to suppliers and purchases of fixed assets (construction, machinery ...) have been deducted.
In general, this calculation serves to measure the ability of a business to generate cash regardless of its financial structure. That is, the FCF is the cash flow generated by the company that is available to meet payments to its financing providers.
In short, the FCF is the balance of treasury that is free in the company, that is, the money available once the mandatory payments have been met. Normally, the FCF is used to remunerate shareholders via dividends or to amortize the principal of the debt and meet interest.
Answer: 28%
Explanation:
First, we have to make an assumption that the initial wealth is 100, then the weight of the risk free asset will be:
= Amount invested in risk free / Initial wealth
= -100/100
= -1
The weight of the portfolio will be calculated as:
= 1 - weight of risk free asset
= 1-(-1)
= 1 + 1
= 2
Therefore, the expected return on the resulting portfolio will be:
= 2 × 16 + [(-1) × 4]
= 32 - 4
= 28
