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Anon25 [30]
3 years ago
8

The total assets and the total liabilities of a business at the beginning and at the end of the year appear below. During the ye

ar, $50,000 of dividends were paid and $35,000 cash received in exchange for common stock. Assets Liabilities Beginning of year $295,000 $190,000 End of year 355,000 220,000 The amount of net income for the year was Group of answer choices $45,000 $40,000 $85,000 $135,000
Business
1 answer:
Serjik [45]3 years ago
6 0

Answer:

Net Income = $45000

Explanation:

The basic accounting equation states that the value of assets is always equal to the sum of the values of liabilities and equity.

Total Assets = Total Liabilities + Total equity

At the beginning of the year:

295000 = 190000 + Total equity

Total Equity = 295000 - 190000

Total Equity = $105000

The net income earned during the year is appropriated in two ways. It is either retained in the business and transferred to retained earning or paid out as dividends or both. Transfer to retained earnings from net income increases equity.

At the end of the year:

355000 = 220000 + Total Equity

Total Equity = 355000 - 220000

Total Equity = $135000

Ending balance of equity = Opening balance of Equity + issuance of equity(Common stock) + Net Income - Dividends

135000 = 105000 + 35000 + Net Income - 50000

135000 = 90000 + Net Income

Net Income = 135000 - 90000

Net Income = $45000

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The answer is genetically engineered food or genetically engineered crop.

Explanation:

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3 years ago
A bussiness performs a cost benefit analysis when it
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Answer:

Consider the possible advantages and drawbacks of a decision.

Explanation:

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Generally, to use the cost-benefit analysis, financial experts usually make some assumptions and these are;

1. Sales price per unit product is kept constant.

2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.

3. All the units produced are sold i.e there is no change in inventory quantities during the period.

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6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.

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3 years ago
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Answer:

Krell's dividend yield and equity cost of​ capital are 4.23% and 19.95%

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                         = 4.23%

Equity cost of capital = (Ending share price - Initial price + Dividend per share) / Initial price * 100

                                   = [($24.36 - $21.05 + 0.89)/$21.05]*100

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Therefore, Krell's dividend yield and equity cost of​ capital are 4.23% and 19.95%

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3 years ago
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Answer:

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