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Tasya [4]
3 years ago
9

Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 an

d liabilities of $220,310. Using the accounting equation, determine the following amounts: a) Stockholders' equity as of December 31 of the current year. $ b) Stockholders' equity as of December 31 at the end of the next year, assuming that assets increased by $84,040 and liabilities increased by $17,800 during the year. $
Business
1 answer:
o-na [289]3 years ago
8 0

Answer:

a) Stockholders' equity  = $411,690

b) Stockholders' equity  = $477,930

Explanation:

Accounting equation is defined as Assets = Liabilities + Equity.

a) If t the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 and liabilities of $220,310, the Stockholders' equity as of December 31 of the current year would be determined as follows:

$632,000 = $220,310 + Equity

Stockholders' equity  = $632,000 - $220,310

Stockholders' equity  = $411,690

b) If assets increased by $84,040 and liabilities increased by $17,800 during the next year, then Stockholders' equity would be determined as follows:

$632,000 + $84,040 = $220,310 + $17,800 + Equity

$716,040 = $238,110 + Equity

Stockholders' equity  = $477,930

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Dan, a computer programmer, holds a garage sale to sell a lawnmower, some clothes, some CDs and some old clothes. Will, a lawyer
olga2289 [7]

Answer:

The correct answer is letter "D": Judy, an expert horse trainer, sells Bob a horse.

Explanation:

According to the Uniform Commercial Code (<em>UCC</em>) a <em>merchant </em>is a person who deals with a product or service of a business in which that person is regularly engaged. The <em>merchant </em>has knowledge and expertise related to the practices involved in the business transaction.

In that sense, only Judy, who is a horse trainer, would be labeled as a <em>merchant </em>by the UCC for selling a horse.

6 0
3 years ago
Janis parker is in charge of marketing for a department store sale. during previous sales, she has had success using only radio
NikAS [45]

Answer:

Past success

Explanation:

During previous sales, Janis had success using only radio advertisements to draw customers into the store for a sale. When her colleague suggests tv commercials as another approach to marketing, she was resistant to change because of her past success with radio advertisements.

8 0
3 years ago
Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 9%,
solniwko [45]

Answer:

cost of common equity = 14.46%

WACC = 11.29%

accept = Project A

Explanation:

Cost of common equity is the return that is required by Holders of Common Stock.

The available details can be used to calculate the cost of common equity using the Dividend Growth Model as follows :

Cost of common equity = (Next year`s Dividend / Current Market Price of a Stock) + Expected Growth

                                        = ($2.20/$26)+6%

                                        = 14.46%

WACC is the minimum return that a project must offer before it can be accepted.It shows the risk of the company.

Cost of Debt = Market Interest Rate × (1 - tax rate)

                     = 9.00% × (1-0.40)

                     = 5.40%

Capital Source                Weight                 Cost                 Total

Debt                                   35%                  5.40%               1.89%

Common Equity                65%                 14.46%               9.40%

Total                                 100%                 19.86%              11.29%

Therefore WACC is 11.29%

When evaluating projects, Compare the Project`s Internal Rate of Return (IRR) to the WACC.

<u>Project A</u>

IRR 12% > WACC 11.29%

Therefore Accept

<u>Project B/S</u>

IRR 11% < WACC 11.29%

Therefore Do Not Accept

3 0
3 years ago
Which of the following would be a likely contact group for someone like Sharon, an intern who just started working for the produ
larisa [96]
The best and the most correct answer among the choices provided by the question is the the second choice. The people that would most likely contact Sharon are her office mates from their department. I hope my answer has come to your help. God bless and have a nice day ahead!
3 0
3 years ago
Read 2 more answers
When comparing Real Estate Investment Trusts (REITs) to Real Estate Limited Partnerships (RELPs), all of the following statement
Natalija [7]

Answer: option C is correct

Explanation:

Real Estate Investment trusts company, REITs do not allow for flow through of loss. Real estate Investment Trusts,REITs owns and manage real estate.

Real Estate Investment Trust company, REITs cannot pass losses to their shareholders, therefore, they invest solely in limited partnerships.

Real Estate Investment trust, REITs also do invest in securities and shares.

But, Real Estate Limited Partnerships company, RELPs allow both for flow through through of loss and for flow through of gain

6 0
3 years ago
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