Answer:
External funds needed = $40,000.
Explanation:
An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the Asset = Liability + Shareholder's Equity Equation unbalanced.
Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).
Net income = Sales * profit margin = $500000*10% = $50000
Dividend= Net income * payout ratio = $50000*20%= $10000
Increase in retained earnings = Net income - Dividend = $(50000-10000)
= $40000
Increase in assets = $80000
External funds needed = $(80000-40000) = $40,000.
Answer:
b. contains no positive statements.
Answer:
Exact = $34.5
Ordinary = $35
Explanation:
Given that :
Principal, P = $1500
Interest rate = 14% = 0.14
Number of days = 60
For exact :
Exact simple interest uses 365 days :
Simple interest = principal * rate * time
Simple interest = $1500 * 0.14 * 60 / 365 = 34.520547 = $34.5
For ordinary simple interest :
Simple interest = principal * rate * time
Simple interest = $1500 * 0.14 * 60 / 360 = $35
Answer: C. government cannot have buying power
Explanation:
Answer: $7,740
Explanation:
Given, At December 31, Accounts receivable = $238,000
Allowance for uncollectible accounts = 3% of (accounts receivable)
∴ Allowance for uncollectible accounts = 3% of ($238,000 )
=$(0.03 ×238,000) [3% = 0.03]
= $ (7140)
= $7,140
Allowance for uncollectible accounts (credit) before any adjustments= $600
The amount of the adjustment for uncollectible accounts = Allowance for uncollectible accounts + $600
= $7,140 + $600
= $7,740
Hence, The amount of the adjustment for uncollectible accounts would be: <u>$7,740.</u>
