If a journal entry and posting for the use of office supplies during the year is accidentally omitted, what would be the impact
1 answer:
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Answer:
The maximum growth rate to my calculations is 8.32%, since it is closer to option E), I´d choose E) 8.37%
Explanation:
Hi, in order to find the growth rate given all the info of the problem, we need to use the following formula.
Where:
g = growth rate
b=retention ratio
R = return on equity
Since R = Earnings / Equity, and our dividend payout ratio (equals to 1 - b)our fromula changes to:
So, everything should look like this:
So, the growth rate is equal to 8.32% but this option is not available, therefore we´ll go for the closest one, that is E) 8.37%.
Best of luck.
Answer:
a. $169,800
Explanation:
As for the provided information we have,
Sales data, for each month
July $120,000
August $211,000
September $198,000
Cash receipt budgeted for September shall be:
36% of sale of the month of July = $120,000 36% = $43,200
60% of sale of the month of August = $211,000 60% = $126,600
Thus, total expected amount = $169,800
Therefore, correct option is
a. $169,800