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4 years ago

In alphabetical order below are balance sheet items for Karol Company at December 31, 2017.

Business

1 answer:

algol [13]4 years ago

3 0

Answer:

Karol Company

Balance Sheet as at December 31, 2017

Assets

Current Assets

Cash 22,000

Accounts receivable 71,000

Total Assets 93,000

Equity and Liability

Equity

Common stock 18,000

Retained earnings 10,000

Total Equity 28,000

Liabilities

Current Liabilities

Accounts payable 65,000

Total Equity & Liabilities 93,000

Explanation:

Balance sheet is the actual presentation of accounting equation which determines that All the asset is equal to the sum of equity and liabilities. It means all the asset made in the company are financed either by equity or liabilities. There are two section in the balance sheet:

Assets section, which accumulates all the assets account balance and their contra accounts as well.

Equity and Liabilities section, which sum up all the account balances of equity and liabilities accounts.

Total of Assets and The total of Equity and Liabilities must be equal.

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NoGrowth Industries presently pays an annual dividend of $ 1.90 per share and it is expected that these dividend payments will c

dybincka [34]

Answer:

$17.27

Explanation:

The stock intrinsic value is calculated using dividend discounted model (DDM). The DDM is stated as below:

Stock intrinsic value = [This year dividend x (1 + Dividend growth)]/[Equity cost of capital - Dividend growth]

= [1.9 x (1 + 0%)]/[11% - 0%] = $17.27

So vlaue of NoGrowth's stock is estimated at $17.27

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3 years ago

Gdp is $8 trillion. if consumption is $5 trillion, investment is $1 trillion, and government purchases are $2 trillion, then:___

Sedaia [141]

Exports are equal to imports when Gdp is $8 trillion. if consumption is $5 trillion, investment is $1 trillion, and government purchases are $2 trillion

Given -

Gross Domestic Product = $8 trillion

Consumption Spending = $5 trillion

Investment Spending = $1 trillion

Government Purchases = $2 trillion

The GDP is calculated as follows -

Gross Domestic Product = Consumption + Investment + Government Purchases + Net Exports

Since other components are given, net exports can be calculated.

Net Exports = Gross Domestic Product - Consumption - Investment - Government Purchases

Net Exports = 8 - 5 - 1 - 2

Net Exports = 0

Therefore, Exports are equal to Imports

Learn more about GDP or Gross Domestic Product here

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2 years ago

Liquidity ratios are used to measure a firm's ability to meet its obligations as they come due. Two of the most commonly used li

marshall27 [118]

Answer:

Current Ratio= Current Assets/ Current Liabilities

Explanation:

Current Ratio= Current Assets/ Current Liabilities

The current ratio is an important measure of a company's ability to pay its short term obligations. It is defined as current assets divided by current liabilities.

Current assets are cash and other resources that are expected to be sold or used within one year or the company's operating cycle , whichever is longer. Examples are cash, short term investments , accounts receivable, short term notes receivable, goods for sale ( called merchandise or inventory) and prepaid expenses. Prepaid expenses are usually listed last because they will not be converted to cash ( instead they are used).

Current liabilities are obligations due to be paid or settled within one year of operating cycle, whichever is longer. they are usually settled by paying out current assets such as cash . Current liabilities often include accounts payable , notes payable, wages payable, taxes payable, interest payable and unearned revenues. Also any portion of a long term liability due to be paid within one year or the operating cycle whichever is longer is a current liability.

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3 years ago

Looking at both your personal skills and your personal qualities is called a _____.

ExtremeBDS [4]

The answer to fill in the blank would be C) Self-evaluation.

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3 years ago

Read 2 more answers

The rate of return on the common stock of Flowers by Flo is expected to be 14% in a boom economy, 8% in a normal economy, and on

tatuchka [14]

Answer:

variance of the returns is 0.00144

Explanation:

Given data

boom economy = 14% = 0.14

normal economy = 8% = 0.08

recessionary economy = 2% = 0.02

boom probabilities = 20% = 0.20

normal probabilities = 60% = 0.60

recessionary probabilities = 20% =0.20

to find out

the variance of the returns

solution

we know variance of the returns is sum of standard deviation

expected return = boom return × boom probability

expected return boom = 0.14 × 0.20 = 0.028

expected return = economy × economy probability

expected return economy = 0.08 × 0.60 = 0.048

expected return = recession × recession probability

expected return recession = 0.02 × 0.20 = 0.004

total expected return = 0.028 + 0.048 + 0.004 = 0.08

for boom economy

standard deviation = probability × (return - 0.08)²

standard deviation = 0.20 × (0.14 - 0.08)² = 0.00072 ..................1

for normal economy

standard deviation = probability × (economy - 0.08)²

standard deviation = 0.60 × (0.08 - 0.08)² = 0 ..................2

for recession economy

standard deviation = probability × (recession - 0.08)²

standard deviation = 0.20 × (0.02 - 0.08)² = 0.00072 ..................3

variance of the returns is sum of standard deviation

variance of the returns = 0.00072 + 0 + 0.00072

variance of the returns is 0.00144

4 0

3 years ago