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3 years ago

Which financial statement is considered a link between the income statement and balance sheet?

1 answer:

6 0

Statement of owners equity is considered a link between the income statement and balance sheet. I think thats the answer your looking for

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On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and insta

irinina [24]

Answer:

annual depreciation expense = $6000

so correct option is d. $6,000

Explanation:

given data

machine costing = $40,000

transportation and installation = $1,000

useful life = 6 years

residual value = $5,000

to find out

How much is the annual depreciation expense

solution

we get here first Cost of machine that is

Cost = $40,000 + $1000

cost = $41000

so depreciable base will be here

Depreciable base = cost - residual value

Depreciable base = 41000 - 5000

Depreciable base = $36,000

so annual depreciation expense is

annual depreciation expense = $\frac{36000}{6}$

annual depreciation expense = $6000

so correct option is d. $6,000

3 0

3 years ago

Cost of Debt KatyDid Clothes has a $150 million (face value) 30-year bond issue selling for 104 percent of par that carries a co

Ivahew [28]

Answer:

the annual pre-tax cost of debt is 10.56%

Explanation:

the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.

We solve for the rate which makes the coupon and maturity 104

with excel or a financial calculator

PV of the coupon payment

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 5.500 (100 x 11%/2)

time 60 (30 years x 2 payment per year)

rate <em>0.052787474</em>

$5.5 \times \frac{1-(1+0.0527874736258532)^{-60} }{0.0527874736258532} = PV\\$

PV $99.4338

PV of the maturity

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 100.00

time 60.00

rate <em>0.052787474</em>

$\frac{100}{(1 + 0.0527874736258532)^{60} } = PV$

PV 4.57

<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>

PV coupon $99.4338 + PV maturity $4.5662 = $104.0000

The rate is generated using goal seek or wiht a financial calculator.

This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:

0.052787474 x 2 = 0.105574947

The cost of debt for the firm is 10.56%

5 0

3 years ago

Pls help it’s due tomorrow!

maria [59]

Answer:

A. Contact Information for Refrences.

Explanation:

Hi there! To me it makes the most sense because it has nothing to do with a carrer plan. Sure, refrences are benefical but they do not determine what can help you grow and succed in the workforce.

I hope this helps! Good luck! :)

4 0

3 years ago

Industrial tools owes you $38,600. this amount is seriously delinquent so you have offered to accept weekly payments for one yea

lesantik [10]

The problem could be solved by using the future value (FV) formula: FV = PV × (1 + r)ⁿ, where;
PV = Present value
r = interest rate
n period

So, substituting the formula with the value:

FV = $38,600 × (1 + (.03÷52))⁵²
≈ $39,775.20

Note that the interest is divided by 52 since it has to be compounded weekly.

So, the weekly payment will amount to $764.91 ($39,775.20÷52).

3 0

3 years ago

Suppose the probabilities of the recession or boom are .30, while the probability of a normal period is .40. would you expect th

gtnhenbr [62]

The standard deviation should decrease because there is now a lower probability of the more extreme outcomes. The expected rate of return on the auto stock is now

<h3>How is the variance calculated?</h3>

[0.3 × (–8%)] + [.4 × 5%] + [.3 × 18\%] = 5%[.3×(–8%)]+[.4×5%]+[.3×18%] = 5%

The variance is

[.3× (–8 – 5 $)^2$ ] + [.4× (5 – 5 $)^2$ ] + [.3×(18 – 5 $)^2$ ] = 101.4

The standard deviation is √101.4 = 10.07 percent, which is lower than the value assuming equal probabilities of each scenario.

To learn more about variance, refer

https://brainly.ph/question/13423233

#SPJ4

4 0

1 year ago