Complete Question
The complete question is shown on the first uploaded image
Answer:
The correct option for first question is A
The correct option for second question is B
Explanation:
The correct option is A because the value of a firm depends on its ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders.
For the second part the answer is B
This because a financial asset will have value only if it can generate future positive cash flows.
Also when valuating the cost at which the asset is acquired is not relevant
Answer:
The entries are made as follows;
Explanation:
Service Revenue Dr.$4,350
Income Summary Cr.$4,350
(To close revenue account)
Income Summary
Supplies expense Dr.$910
Insurance Expense Dr.$540
Salaries and Wages Expense Dr.$1,770
Income Summary Cr.$3,220
(To close expenses)
Income Summary (4,350-3,220) Dr.$1,130
Retained Earnings Cr.$1,130
Answer:
1)$11,978
2)9%
3)15 periods
4) 6%
5) $ 78,867.70
Explanation:
<u><em> PV Annuity per period rate time </em></u>
1. ? 3,000 8% 5
2. 242,980 75,000 ? 4
3. 161,214 20,000 9% ?
4. 500,000 80,518 ? 8
5. 250,000 ? 10% 4
1)
C 3,000.00
time 5
rate 0.08
PV $11,978.1301
2)
solved using excel goal seek or financial calculator
C 75,000.00
time 4
<em>rate 0.089998108 we set up the formula PV(A2;4,75000)</em>
<em>then we use goal seek to find which value of a2(which is the argument for rate) makes the formula equal to 242980</em>
PV $242,980.0000
3)
C $20,000.00
time n
rate 0.09
PV $161,214.0000
-15.00004401
4)
same as (2) solved using excel
C 80,518.00
time 8
<em>rate 0.06000009</em>
PV $500,000.0000
5)
PV 250,000
time 4
rate 0.1
C $ 78,867.701
Answer:
Estimated manufacturing overhead rate= $24 per direct machine hour.
Explanation:
Giving the following information:
Carlson estimated its overhead costs at $240,000 and machine hours at 10,000. The predetermined overhead rate is based on machine hours.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 240,000/10,000= $24 per direct machine hour.