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3 years ago

Morris Company had the following adjusted trial balance:

Business

1 answer:

kondaur [170]3 years ago

7 0

Answer:

$38,100 ; $45,600 and $0

Explanation:

The computation is shown below:

For amount transferred from the income summary account to the Retained Earnings account in the third closing entry i.e net income or net loss

As we know that

Net income = Total revenues - total expenses

Commission revenue $49,700

Rent revenue $7,300

Less: expenses

Depreciation expense - $5,200

Utilities expense -$8,600

Supplies expense -$5,100

Net income $38,100

The balance in retained earning account is

= Opening retained earning balance + net income - dividend paid

= $22,500 + $38,100 - $15,000

= $45,600

And, the balance in depreciation expense account is zero as this depreciation expense account is closed while closing the expenses account i.e utilities expense, supplies expense and depreciation expenses

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You are analyzing the cost of capital for a firm that is financed with 65 percent equity and 35 percent debt. The cost of debt c

ExtremeBDS [4]

Answer:

c. 15.8%

Explanation:

The cost of equity is the WACC (weighted average cost of equity)

WACC formula = wE*rE + wD*rD(1-tax) , whereby

wE = weight of equity = 65%

rE = cost of equity = 20%

wD = weight of debt=35%

rD(1-tax ) = after tax cost of debt =8%

WACC = (0.65 *0.20) + (0.35*0.08)

= 0.13 + 0.028

= 0.158 or 15.8%

Therefore, the overall cost of capital is 15.8%

8 0

3 years ago

If the nominal exchange rate between the US dollar and the Canadian dollar is C $ 0.89 to the US dollar, how many dollars is req

Olin [163]

Answer:

1) 2.8 USD

2)There are several methods:

1) Modifying Reserve Requirements

2) Changing Short-Term Interest Rates

3) Conducting Open Market Operations

Explanation:

I) First of all, the nominal exchange rate describes how much foreign currency can be exchanged for a unit of domestic currency, but the real exchange rate indicates how much the goods and services in the domestic country can be exchanged for the goods and services in a foreign country.

If 1USD=0.89CAD, then 1 CAD=1/0.89=1.12USD

Then 2.5 CAD = 2.5*1.12= 2.8 USD so we will need 2.8 USD to get 2.5 CAD.

II) As we know, the movement of the money supply is the responsibility of the monetary policy activities by central banks. There are several methods:

1) Modifying Reserve Requirements: means that it is possible to influence by modifying the reserve requirements to increase or decrease the money supply. More deeply, this modification refers to the amount of funds banks have to keep against deposits in bank accounts. By lowering the reserve requirements, banks are able to loan more money, which grow the overall supply of money in the economy. Conversely, by increasing the banks' reserve requirements, it will be possible to decrease the size of the money supply.

2) Changing Short-Term Interest Rates: means that it is possible to change the interest rates in short terms to alter the money supply. It’s all about the changing the discount rates. By lowering the rates, it is possible increase the money supply and boost economic activity.

3) Conducting Open Market Operations: means that it is possible to increase or decrease the money supply conducting open market operations, which affects the funds rate. So the authority who deals with the monetary policy buys and sells government securities in the open market. If the authority wants to increase the money supply, it will purchase government bonds as a result this supplies the securities dealers who sell the bonds with cash, increasing the overall money supply. However, if the authority wants to decrease the money supply, it will send bonds from its account, thus taking in cash and removing money from the economic system as a result, adjusting the funds rate is a heavily anticipated economic event.

3 0

4 years ago

During its first year of operations, puffin, incorporated reported sales revenue of $388,200 but only collected $308,000 in cash

sp2606 [1]

During its first year of operations, puffin incorporated reported sales revenue of $388,200 but only collected $308,000 in cash from customers. at the end of the year, accounts receivable equals:$80200.

Annual revenue is the amount of money your business earns from sales in a year. This does not include costs and expenses. To calculate annual sales, multiply the quantity of each product sold by the selling price, then add the annual sales for each product to arrive at the total annual sales.

A legal entity is an entity that exists legally separate from its owners, managers, operators, employees, and agents. Legal entities have the same powers as individuals, including the right to own and dispose of property, the power to sue and be sued, and the power to contract for a profit. A business example is an agriculture. An example transaction is a home sale.

Learn more about revenue here

brainly.com/question/25623677

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8 0

1 year ago

What is a public enterprise?<br><br>answer the question ✌

Sergeeva-Olga [200]

A public enterprise is an industrial or commercial undertaking which the government owns and manages. Also, the primary objective of such an enterprise is social welfare and upholding the interest of the general public

7 0

3 years ago

As the owner of a party store, you have decided to lower the price for all balloons this month. What do you expect to happen?

Ulleksa [173]

Answer:

Quantity demanded for balloons will increase.

Explanation:

According to the law of demand, there is an inverse relationship between the price of the commodity and the quantity demanded for that commodity.

This means that if there is an increase in the price of a good then as a result the quantity demanded for that good decreases and on the other hand if there is a fall in the price of a good then as a result the quantity demanded for that good increases.

Therefore,

Fall in the price of balloons will lead to increase the quantity demanded for balloons.

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3 years ago