Which of the following best describes a liability?

Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then

satela [25.4K]

Answer:

Transaction 1

Assets - Decrease by $225,000

Cash expended to acquire shares = 5,000 * 45 = $225,000

Liabilities - No effect

Stockholders' equity - Decrease by $225,000

Increase in Treasury shares leads to decrease in the amount stockholders hold.

Paid In Capital - No effect

Retained Earnings - No Effect

Net Income - No Effect

Transaction 2

Assets - Increase by $98,000

Cash increased because of sale of stock = 2,000 * 49 = $98,000

Liabilities - No effect

Stockholders' equity - Increase by $90,000

= 2,000 * 45 = $90,000

Cost method means that when debiting from Treasury account, use original cost.

Paid In Capital - Increase by $8,000

If stock is sold for amount different from what it was bought, it goes into this account. If it is larger than it was bought for then this account increases and vice versa.

Retained Earnings - No Effect

Net Income - No Effect

Transaction 3

Assets - Increase by $20,000

Cash from sale of stock = 500 * 40 = $20,000

Liabilities - No effect

Stockholders' equity - Increase by $22,500

= 500 * 45 = $22,500

Paid In Capital - Decrease by $2,500

If stock is sold for amount different from what it was bought, it goes into this account. If it is smaller than it was bought for then this account decreases and vice versa.

Retained Earnings - No Effect

Net Income - No Effect

4 0

3 years ago

Sister Pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. Al's Construction build

Aloiza [94]

Answer:

$1,952 (Positive NPV)

Explanation:

Year Annual CF ($) PV factor at 10.30% PV of Cash Flow ($)

1 17,000 0.90662 15,413

2 17,000 0.82196 13,973

3 17,000 0.74520 12,668

4 17,000 0.67561 11,485

5 17,000 0.61252 10,413

6 17,000 0.55532 9,441

7 17,000 0.50347 8,559

TOTAL 1.73554 81,952

Net Present Value (NPV) = Present value of annual cash flows - Initial Cost

Net Present Value (NPV) = $81,952 - $80,000

Net Present Value (NPV) = $1,952 (Positive NPV)

8 0

3 years ago

Everfi You have to match the boxes with the section

ANTONII [103]

Answer:

Needs : Frappuccino before work each day and winter coat

Wants: monthly loan payment and paying extra on the principal loan amount

Saving: rent on your apartment

8 0

2 years ago

You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.32 per share and is tr

MrMuchimi

Answer:

The 1-year HPR for the second stock is 12.84%. The stock that will provide the better annualized holding period return is Stock 1.

Explanation:

For First stock

Total dividend from first stock = Dividend per share * Number quarters = $0.32 * 2 = $0.64

HPR of first stock = (Total dividend from first stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($0.64 + ($31.72 - $27.85)) / $27.85 = 0.1619, or 16.19%

Annualized holding period return of first stock = HPR of first stock * Number 6 months in a year = 16.19% * 2 = 32.38%

For Second stock

Total dividend from second stock = Dividend per share * Number quarters = $0.67 * 4 = $2.68

Since you expect to sell the stock in one year, we have:

Annualized holding period return of second stock = The 1-year HPR for the second stock = (Total dividend from second stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($2.68+ ($36.79 - $34.98)) / $34.98 = 0.1284, or 12.84%

Since the Annualized holding period return of first stock of 32.38% is higher than the Annualized holding period return of second stock of 12.84%. the first stock will provide the better annualized holding period return.

The 1-year HPR for the second stock is 12.84%. The stock that will provide the better annualized holding period return is Stock 1.

6 0

3 years ago

What is the purpose of writing a topic sentence?

Mnenie [13.5K]

Answer:

The correct answer is option C. To summarize the main point of the paragraph

Explanation:

A topic sentence is the most important part of a paragraph. The main purpose of a topic sentence is to provide a concise statement that reflects the purpose of the paragraph or the information that is going to be provided in the paragraph effectively.

It is usually the first sentence of a paragraph and becomes the opening statement of a paragraph in formal writings.

I hope the answer is helpful.

4 0

2 years ago

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