Answer:
A. The trade-off a firm faces when using retained earnings or borrowed funds is the same.
Explanation:
- A trade-off is based on the situational decisions that usually involve the loss of quality and a property that is set or designed to give a return in the other aspects.
- As one part has to increase and the other has to decrease. The trade-off is commonly expressed as in the terms of opportunity costs which states the loss of the best alternative.
Answer:
$600
Explanation:
In this situation, first we have to know that tax levy on assessed value.
<u>Computation of tax rate:</u>
Appraised Value = $25,000
Assessed value = $20,000
Tax = $300
Tax rate = ($300 / $20,000) x 100 = 1.5%
Assume Appraised Value = $45,000
Assume Assessed value = $40,000
Calculation of tax value = Assessed value x tax rate
= $40,000 x 1.5%
= $600
The correct answer would be B. This is because you are spending more money aka $12,000 which would result in you having less money than if you bought one for $8,000!
Answer:
Painter Corporation
Income Statement
For the month ended January, 202x
Total revenues $299,000
<u>Total expenses ($192,000)</u>
EBIT $107,000
<u>Income taxes ($33,200)</u>
Net income $73,800
Painter Corporation
Balance Sheet
For the month ended January, 202x
Assets:
Cash $66,950
Accounts receivables $33,200
Merchandise inventory $95,700
Total assets $195,850
Liabilities:
Accounts payable $27,350
Stockholders' equity
Common stock $94,700
Retained earnings $73,800
Total stockholders' equity $168,500
Liabilities + stockholders' equity $195,850
Answer:
$56,470.59
Explanation:
We need to calculate the principal amount at the beginning of June
Data:
Interest (I) = $400
Rate(r) = 8.5%
Time(t) = 360 days
Solution:
We can calculate the principal amount by rearranging the Interest calculation formula
Formula: I = Prt
Note; Where P in the formula is the principal amount
Now rearrange the formula in order to find principal
P = I/rt
P = $400/(0.085)x(30/360)
P = $400/(0.085)x(0.08333333333333)
P = $400/(0.00708333333333
P = $56,470.59
Note: we only need to find the principal balance of June so we will consider only 30 days of June out of 360 days.
