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"Redfox Pest Control Service had revenues of $425,000 and expenses of $338,000 for the current year, ended June 30. At the begin

andrew-mc [135]

Answer: The options are given below:

A. $292,000

B. $267,250

C. $205,250

D. $275,250

The answer is D. $275,250

Explanation:

Net profit = 425,000 - 338,000 = $87,000

Common Stock =110,000 + 25,000 = $135000

Retained Earnings = 70,000 + 87,000 = $157000

Less: Dividend paid = -$16,750

We will calculate shareholders equity as follows:

Total shareholders' Equity = common stock + retained earnings - dividend paid

=> $135000 + $157000 - $16,750

= $275,250

7 0

3 years ago

Read 2 more answers

What is a cash book used for?

Alinara [238K]

Answer:

to keep track of all business transactions in case of an audit

8 0

2 years ago

Read 2 more answers

Gains from remeasuring a foreign subsidiary’s financial statements from the local currency, which is not the functional currency

Archy [21]

Answer:

Gains from remeasuring a foreign subsidiary’s financial statements from the local currency, which is not the functional currency, into the parent company’s currency should be reported as a(n):_______

d. Part of continuing operations.

Explanation:

Gains from the remeasurement of a subsidiary's financial statements from the local currency to the parent company's currency should be reported as part of the continuing operations. It forms part of the current income. They are not deferred. It is translation adjustments that are reported as other comprehensive income, not gains from remeasurement. Remeasurement gains from a subsidiary's local currency to the parent's are also not extraordinary items.

4 0

3 years ago

The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate

Bezzdna [24]

Answer:

Option B is the correct answer,1.05

Explanation:

Present value index can be computed using the below formula:

present value index=present value of cash inflows/initial amount invested

present value of cash inflows=annual net cash flow*present value factor of annuity

annual net cash flow=$93,750

present value factor of annuity=4.212

present value of cash inflows=$93,750*4.212=$394,875.00

initial amount invested is $375,000

present value index=$394,875.00/$375,000 =1.053

The present value index of this project is approximately 1.05,which is the option B in the multiple choices

3 0

3 years ago

A company issued 6,000 shares of stock at $10 each, with a par value of $2.

tensa zangetsu [6.8K]

The answer is c $30,000

5 0

2 years ago