Answer:
a. Revenue provides only outward flows of cash.
b. Revenue is a subdivision of Assets.
d. Expenses are part of Total Assets.
Explanation:
Revenue is the income a business receives from its regular trading activities. It is the money realized from the sale of goods and services to customers. A company may have different sources of revenue such as interests received, sales, or disposal of assets.
Revenue is cash coming to the business or cash inflows. cash outflows is money leaving the company. Expenses are an example of cash outflows.
Answer:
$11,000
Explanation:
Data provided as per the requirement of net income for year 1 is here below:-
Provided consulting services = $50,000
Paid rent expense = $12,000
Paid employees salaries = $27,000
The computation of net income for Year 1 is shown below:-
Net income for Year 1 = Service revenue - Rent expense - Salary expenses
= $50,000 - $12,000 - $27,000
= $11,000
Therefore for computing the Net income for Year 1 we simply applied the above formula.
Answer:
The value of Edinburgh’s preferred stock is $74.63
Explanation:
Preferred dividend are the fix amount payment which represents the perpetuity, the company can repurchase the preferred share as it is callable.
Dividend = $100 x 8% = $8
Price of Preferred Share = Dividend / Rate of return
Price of Preferred Share = $8 / 10.72%
Price of Preferred Share = $8 / 0.1072
Price of Preferred Share = $74.63
Answer:
$ 18,179
Explanation:
From the list price we will apply the trade discount to know the nominal at the invoice.
Then we will apply the discount agreed on the invoice of 2% getting the net cost of the merchandise:
list price: 26,500
trade discount of 30% =<u> (7,950) </u>
invoice nominal 18,550
discount within first 10 days:
18,550 x 2% = (371)
net of discount: 18,179
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