Answer: Stage 3- Success stage.
Explanation:
Businesses are different in capacity and size for growth and are characterized by different organization structures, independence of action, and varied management styles.
The success stage is the stage at which companies seek whether to exploit their accomplishments and expand or rather enhance the stability of the company stable and profit. The main issue is to use the firm as an avenue for growth or means of support for the owners as they engage in complete or partial disengagement from the firm. During this stage, as the company grows, employers are more interested in the product and its growth.
Answer:
Martin has a recognized gain on the transfer of <u>$40,000</u> and a basis of <u>$0</u> for his stock.
Explanation:
Martin's gain = liability assumed on the real estate transfer - real estate basis = $300,000 - $260,000 = $40,000
Martin's basis for his stock = real estate basis + recognized gain - liability assumed on the real estate transfer = $260,000 + $40,000 - $300,000 = $0
In this case the corporation assumed a liability, and the basic accounting equation is:
assets = liabilities + equity
If the liability's value offset the asset value, then there is no increase in equity.
Answer:
(a) Taci Company lent the money on September 1:
Debit Notes receivable $88,000
Credit Cash $88,000
<em>(To recognize notes receivable)</em>
(b) On December 1:
Debit Cash $88,880
Credit Notes receivable $88,000
Credit Interest receivable $880
<em>(Collection of notes principal and interest at maturity)</em>
Explanation:
Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Interest revenue on the notes is calculated as: Principal x Interest Rate x Time
In this case, the total interest revenue is $88,000 x 4%/12 x 3 months = $880.
Monthly interest revenue is therefore $880 / 3 months = $293.33.
Answer:
4.04%
Explanation:
Given that,
Current sales = $5,000,000
Current total assets = $2,500,000
Profit margin = 7%
Payout ratio = 80%
Accounts payable = $500,000
Notes payable = $300,000
Accruals = $200,000
Current Spontaneous Liabilities:
= Accounts Payable + Accruals
= $500,000 + $200,000
= $700,000
Retention Ratio:
= 1 - Payout Ratio
= 1 - 0.8
= 0.2
Self-supporting Growth Rate:
= [Profit margin × Retention Ratio × Current Sales] ÷ [Current Total Assets - Current Spontaneous Liabilities - (Profit margin × Retention Ratio × Current Sales)]
= [0.07 × 0.2 × $5,000,000] ÷ [$2,500,000 - $700,000 - (0.07 × 0.2 × $5,000,000)]
= $70,000 ÷ $1,730,000
= 0.0404 or 4.04%
The establishment of a state -owned Company is really important for every nations, especially if it involved in the resources that is critically needed for the people.
For example, lets say that all of the water resources fall to the hands of capitalist. Imagine how expensive it could be to get a simple drinking water or for baths.