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3 years ago

Holding all other things constant, when the price level rises, interest rates:

1 answer:

5 0

The interest rate will also increase and firms will want to borrow less for new plants and gear and households will want to borrow less for homebuilding. And in addtion to that interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

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{The following information applies to the questions displayed be/ow. Fighting Irish Incorporated pays its employees $3,220 every

matrenka [14]

Answer: $690

Explanation:

The 2018 year- end adjusted balance of Salaries Payable will be calculated as:

= January 1, 2018 balance + Adjustment on December 31, 2018

= $0 + $690

= $690

Note: Salaries accrued at December 31, 2018 will be:

= (Number of days from December 29 - 31) × Salary per day

= 3 × $230

= $690

Therefore, the balance on salaries payable is $690

6 0

2 years ago

Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of

solmaris [256]

Answer:

1)Dividend per share = 1

2)Dividend yield = 5%

3)Dividend payout ratio = 0.39

Explanation:

As per the data given in the question,

Net sale = $5,345,000

Cost of goods sold = $3,474,250

Gross margin = $5,345,000 - $3,474,250 = $1,870,750

Operating expenses = $1,140,300

Operating income = $1,870,750 - $1,140,300 = $730,450

Interest expenses = $27,000

Income before taxes = $730,450 - $27,000 = $703,450

Income tax(40%) = $281,380

Net in come = $422,070

Preference of dividend = $40,000

Earnings available to common stockholders = $422,070 - $40,000 =$382,070

Common stock = $150,000

Earning per share = $382,070÷$150,000 = 2.55

Dividend to common stockholders = $150,000

Dividend per share = $150,000÷$150,000 = 1

Market price of common share = $20

Dividend yield = (Dividend per share×100÷market price of common share) = 5%

Dividend payout ratio = Dividend per share÷earning per share =1÷2.55 = 0.39

3 0

2 years ago

Which describes the liability of an owner of a sole proprietorship?

Vanyuwa [196]

Unlimited

hope this helps

3 0

2 years ago

Read 2 more answers

Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financia

yuradex [85]

Answer:

$146 million

Explanation:

Calculation for the deferred tax liability that Isaac would report

Using this formula

Deferred tax liability=Total future taxable income × Tax rate

Let plug in the formula

Deferred tax liability=($653 million- $70 million) *25%

Deferred tax liability=$583 million *25%

Deferred tax liability=$145.75 million approximately $146 million

Therefore the deferred tax liability that Isaac would report will be $146 million

7 0

2 years ago

acquired 80% of the common stock of Grunt Corp. for $1,200,000. The fair value of Grunt’s net assets was $850,000, and the book

Jobisdone [24]

Answer:

total amount of goodwill recognized at the date of acquisition is 650000

Explanation:

given data

ownership = 80%

common stock = $1,200,000

net assets = $850,000

book value = $600,000

to find out

total amount of goodwill recognized at the date of acquisition

solution

we know here goodwill of controlling interest is

goodwill of controlling interest = common stock - ( net asset × ownership )

put here value

goodwill of controlling interest = 1,200,000 - ( 850,000 × 80% )

goodwill of controlling interest = 520000

and total amount of goodwill recognized at the date of acquisition

will be

total amount = $\frac{goodwill interest}{ownership}$

total amount = $\frac{520000}{0.80}$ = 650000

so total amount of goodwill recognized at the date of acquisition is 650000

8 0

2 years ago