Answer:
d) Equity would increase by $63,228
Explanation:
We are not given any information about stock prices, but we do not need them. Whenever new common stocks are issued, stockholders' equity will increase (always).
Retained earnings are affected by net income and dividends:
- net income increases retained earnings
- dividends decrease retained earnings
Answer:
The Journal entries are as follows:
(1)
Equipment A/c Dr. $71,890
To cash $3,790
To accounts payable $68,100
(To record the purchase of equipment)
Workings:
Equipment value:
= Purchase price + Sales tax + Freight charges for shipment of equipment + Installation of equipment
= 64,000 +4,100 + 890 + 2,900
= $71,890
Cash Paid:
= Freight charges for shipment of equipment + Installation of equipment
= 890 + 2,900
= $3,790
Accounts payable = Purchase price + Sales tax
= 64,000 +4,100
= $68,100
(2)
Prepaid Insurance A/c Dr. $1,090
To cash A/c $1,090
(To record any expenditures not capitalized in the purchase of equipment)
Answer:
rate 0.= 5.63%
Explanation:
F0 = -175,000 (oven cost)
Then
520,000 additional revenues
<u>-470,000</u> additional expenses
50,000 net cash flow
We ghave to solve for the rate of return of a 50,000 dollar annuity given it cost 170,000 during four years
C 50,000.00
time 4
PV $175,000.0000
We apply the IRR function in excel to get the IRR
=IRR({-175000,50000,50000,50000,50000})
rate 0.055637846 = 5.63%
Answer:
B. Defensive Strategy
Explanation:
One thing that is inevitable in business is competition. Dexter decided to use a defensive strategy for his business with his retirement coming in and competition becoming even stronger.
Defensive strategies are management techniques used to "fend off attacks" from competitors. It helps the decision maker hold on to shares of the market. Some companies do this to lower the risk of being attacked when they perceive attacks coming from competitors so in turn, those competitors can focus on other competitors in the market.
Answer:
117,000 adjusted COGS
Explanation:
35,000 + 136,000 = 48,000 + COGS
COGS = 123,000 before adjustment
overapplied overhead for 6,000
This means the applied is higher than actual expenses, the cost is 6,000 lower we must decrease the COGS
123,000 - 6,000 = 117,000 adjusted COGS