you have to pay back a loan
so the answer is C. loan
hope i helped
Answer:
A. Current liability
1. 60-day promissory note.
2. Salaries payable.
3. FICA taxes payable.
4. Income taxes payable.
5. Accounts payable.
B. Long-term liability
1. Note payable due in full in two years.
C. Not a liability
1. Payment of a 4-year term loan due this year.
2. Payment of a 30-year term loan due this year.
Explanation:
Current liability refers to a short-term liability that is that is due for a payment within a year.
Long-term liability refers to a liability that is that is due for a payment more than one year in the future.
Not a liability - This implies that a liability is no longer a liability the moment a payment is made for it or the moment it is paid.
Based on the above, we therefore have:
A. Current liability
1. 60-day promissory note.
2. Salaries payable.
3. FICA taxes payable.
4. Income taxes payable.
5. Accounts payable.
B. Long-term liability
1. Note payable due in full in two years.
C. Not a liability
1. Payment of a 4-year term loan due this year.
2. Payment of a 30-year term loan due this year.
Answer:
13.5%
Explanation:
Relevant data provided for computing the profit margin which is here below:-
Net Income = $175,000
Net Sales = $1,300,000
The computation of profit margin is shown below:-
Profit Margin = (Net Income ÷ Net Sales) × 100
= ($175,000 ÷ $1,300,000) × 100
= 13.5%
Therefore for computing the profit margin we simply applied the above formula.
Answer:
Cost of retained earnings
= <u>Do(1 + g)</u> + g
Po
= $1.26<u>(1 + 0.06)</u> + 0.06
$40
= 0.0333 + 0.06
= 0.0933 = 9.33%
Explanation:
Cost of retained earnings is equal to current dividend paid subject to growth rate divided by the current market price of common stock plus growth rate
Answer:
Closing/ New Level of Retained Earnings = $170,000
Explanation:
As for the provided information,
Retained earnings opening balance = $140,000
Net Profits after taxes = $65,000
This balance of net profit which is after taxes includes the dividend earned, which shall be the part of income, as the dividend earned is part of our income in case not reduced from carrying value of investment, as in case of investment in any company's stock for less than 20% share.
Also the preference dividend paid tends to reduce the net income to be added to retained earnings.
Therefore, closing balance of retained earnings:
= $140,000 + $65,000 - $35,000 = $170,000