All categories

3 years ago

The following items are taken from the financial statements of Cullumber Company for 2022:

Business

1 answer:

Doss [256]3 years ago

4 0

Answer:

Cullumber Company

Balance Sheet

As at 2022

Explanation: Amount in $

Current Assets

Accounts Receivable 12,500

Cash 13,000

Prepaid Insurance 6,600

Supplies 4,600

Total Current Assets 36,700

Non-Current Assets

Equipment (225,000-36,900) 188,100

Total Assets <u> </u><u>224,800</u>

Liabilities & Shareholders' Equity

Current Liabilities

Accounts Payable 10,600

Notes Payable 65,000

Salaries Payable 3,900

Total Current Liabilities 79,500

Equity

Common Stocks 97,000

Retained Earnings (25,900+133,000-21,400-13,600-2,600-16,800-33,500-6,700) 64,300

Dividends (16,000)

Total Equity 145,300

Total Liabilities & shareholders' equity <u>224,800</u>

You might be interested in

brutus co. exists in a world with taxes, but otherwise, capital markets are perfect. brutus co's debt cost of capital is 6%, its

FinnZ [79.3K]

Brutus co's leverage ratio is 40%

<h3>What leverage ratio?</h3>

The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. The WACC is the typical interest rate that a business anticipates paying to finance its assets.
The rate that a business is anticipated to charge on average to all of the holders of its securities in order to fund its

Cost of capital is 6%, its equity cost of capital is 11%, its weighted average cost of capital is 5.8% and its tax rate is 25%.

WACC = (5.8% x 25%) + (5.8% x 11% x 6%)

WACC = 3.973

WACC = 40%

Brutus co's leverage ratio is 40%

To learn more about WACC refer to:

brainly.com/question/25566972

#SPJ4

5 0

1 year ago

If interest rate parity holds and the annual Taiwan nominal interest rate is 7% and the US. annual nominal rate is 5% and real i

Sati [7]

Answer:

2% higher

Explanation:

Nominal rate = real rate + inflation

In the U.S:

$5\%=2\%+inflation\\inflation = 3\%$

In Taiwan:

$7\%=2\%+inflation\\inflation = 5\%$

The difference between inflations is:

$I_T - I_{US} = 5\%-3\% = 2\%$

Therefore, then inflation in Taiwan is about 2% higher than in the U.S.

7 0

3 years ago

After a business meeting with a prospective client holly took the client to dinner and the theatre. holly paid $290 for the meal

Mumz [18]

In this instance, Holly would be able to deduct all of these expenses if she is not reimbursed from her employer.

5 0

2 years ago

The Terrence Co. manufactures two products, Baubles and Trinkets. The following are projections for the coming year: Baubles Tri

MAXImum [283]

Answer:

Bauble to be sold for break even = 5484

Explanation:

Sales Mixture = 16000 : 8000 = 2:1 2 : 1

Bauble Trinkets

Selling Price P.u (16/16) : (16/8) = 1 2

Variable Cost (6400/16000) : ( 11520/16000) = (0.4) (0.72)

Contribution margin Per unit (Sp-Vc) = 0.6 1.28

Com-posit Cm 2 baubles 1 trinkets = 0.6*2+1.28*1 = 2.48

Fix Cost Total = 3200+3600 = 6800

Break-Even units = 6800/2.48 = 2741

Baubles 2742*2 = 5484*0.6 = 3290.4

Trinkets 2742*1 = 2742*1.28 = 3509.7

5 0

3 years ago

A self-driving car designer and a luxury automobile company partner together to develop a luxury, fully autonomous vehicle. By j

stira [4]

The joining together of the self-driving car designer and a luxury automobile company can result in profit maximization.

<h3>What is profit maximization?</h3>

It should be noted that profit maximization simply means the process that's important to bring about the highest level of profit in a company.

In this case, the joining together of the self-driving car designer and a luxury automobile company can result in profit maximization and improvement in sales.

Learn more about profit maximization on:

brainly.com/question/4171648

6 0

2 years ago