Answer:
A : balance sheet only
Explanation:
In the given question, the truck was purchased on credit and the truck is a fixed asset that comes under the balance sheet only because in the income statement, the expenses and revenues are recorded whereas retained earnings records profit which is left to the company.
So, it affects the balance sheet only. As balance sheet records all types of assets and all types of liabilities plus shareholder equity.
Answer:
Total market value $383.8 million
Debt is 24.75%
Preferred stock is 5.21%
Common equity is 70.03%
Explanation:
Calculation of the weights that MV Corporation should use in its WACC
Debt value : $95 million
Preferred stock value : $20 million
Market value of common equity:
$48 per share×5.6million shares= $268.8 million
Total market value of firm: $95 +20 +268.8 =$383.8 million
Weights for WACC calculation:
Debt =95/383.8
=24.75%
Preferred Stock =20/383.8
=5.21%
Common Equity =268.8/383.8
=70.03%
Therefore the total market value of the firm will be $383.8 million Debt is 24.85% of the total value, preferred stock is 5.21%, and common equity is 70.03%
Answer: amount of checks outstanding at the end of the period.
Explanation:
Accounting uses the accrual based system which means that revenue and costs are only recognized when they occur. This means that a company might get revenue in a period but would not have the actual cash in that period to represent that revenue.
The statement of cash flows is created to see the actual amount of cash that a company has instead of revenue or expenses based on the accrual basis of accounting.
That being said, it only includes cash based transactions and will not include checks outstanding at the end of the month.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Unitary variable cost= $10
Total fixed costs= $15,000
Selling price= $12
The break-even point analysis shows the number of units required to cover for the fixed costs.
To calculate the break-even point in units, we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 15,000/ (12 - 10)= 7,500 units
