Answer:
E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.
Explanation:
Journal Entry for Issuance of 70 shares of $30 par value preferred stock for $4,000 is -
Cash Debited - $4,000
Paid in Capital in excess of Par value Credited - $1,900
Preferred Stock (70 shares × $30 each) Credited - $2,100
The correct option is - E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.
Answer: The correct answer is "E. Cost of goods sold to be overstated and net income to be understated.".
Explanation: The understatement of the ending inventory balance causes:
<u>Cost of goods sold to be overstated and net income to be understated.</u>
Answer:
Projects E,F and G should NOT be considered.
Optimal Capital is $5,750,000
Explanation:
The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)
Accept if r>k
Reject if r<k
Mayaccept if r = k
If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.
The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.
And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)
Answer:None of the above= 10% and 33.33%
Explanation:
Coverage ratio EBIT/Interest expenses
Change in numerator =3/30*100
Change in denominator= 2/6*100
Answer:
The types of information could you collect to monitor potential political “trouble spots” around the world involves having a keen observation of various countries with the following:
1. Communism or Totalitarianism style of governance
2. Low General Standard of Living
3. Few Resource level and control of resources by the few such as Oligarchy
4. High unemployment rate
5. Low Literacy status
6. High Inflation rate
7. Political instability
8. Increased population expansion rate
9. Wide-ranged income unevenness
