Answer:
Explanation:
Statement of retained earning represent the changes in retained earning balance during the year and accumulated beginning balance of the period and Ending balance as well. It deals with all the adjustment in retained earning like net income transfer fro the year, dividend paid during the year etc.
Splish Corporation
Retained Earning Statement
for the year ended December 31, 2020
$
Retained Earning at January 1, 2020 707,000
Less: Cash Dividend paid during 2020 85,000
Add: Net Income for the year 2020 <u>1,428,500</u>
Retained Earning ath December 31 2020 <u>2,050,500</u>
Answer:
The answer is: The net present value of the investments
Explanation:
The net present value calculates the current monetary value of a project's future cash flows, using a discount rate. You must remember that $1 today is worth more $1 in the future.
When deciding what projects should be financed, an investor will always look for projects with a NPV ≥ 0, and if he has to decide between two projects, the he will probably choose the project with the highest NPV.
The easiest way to calculate the net present value is to use an excel spreadsheet and the NPV function:
=NPV(rate,value 1, value 2,... value n)
Answer:
$5,000
Explanation:
Given that,
Accounting profit = $10,000
Interest rate = 5%
Amount withdraw = $100,000
The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.
Accounting profit is determined by subtracting explicit costs from the total revenue.
Accounting profit = Total revenue - Explicit costs
Economic profit:
= (Total revenue - Explicit costs) - Implicit costs
= $10,000 - (Interest income)
= $10,000 - (5% × $100,000)
= $10,000 - $5,000
= $5,000
Answer:
take actions now that will have positive effects on organizational performance in the future.
Explanation:
Lead indicators can be defined as an economic indices such as level of company stock prices or corporate profits, which usually changes before any significant corresponding change in the state of an economy. Thus, leading indicators serves as leaders or drivers for a business firm or organization.
Generally, lead indicators guide management to take actions now that will have positive effects on organizational performance in the future because they are variables that corresponds to a future variable of interest.
The obligation of the seller of the receivables to pay the purchaser in case the debtor fails to pay.
