Answer:
External funds needed = $40,000.
Explanation:
An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the Asset = Liability + Shareholder's Equity Equation unbalanced.
Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).
Net income = Sales * profit margin = $500000*10% = $50000
Dividend= Net income * payout ratio = $50000*20%= $10000
Increase in retained earnings = Net income - Dividend = $(50000-10000)
= $40000
Increase in assets = $80000
External funds needed = $(80000-40000) = $40,000.
Answer:
Best estimate for inventory =$70,764.85
Explanation:
The closing inventory value at retail
= (Opening inventory + Purchases - sales) all in retail prices
= $123,000 + $483,000 - 493,000.
= 113000
Closing inventory value at cost
=113,000 × (64,500 + 315,000)/(123,000 + $483,000)
=70,764.85
Best estimate for inventory =$70,764.85
The Allowance for Doubtful Accounts T-account will have the <u>estimated bad debts from the adjusting entry</u> sales discounts .
Doubtful account
An allowance for doubtful accounts is considered a “contra asset,” because it reduces the amount of an asset, in this case the accounts receivable. The allowance, sometimes called a bad debt reserve, represents management's estimate of the amount of accounts receivable that will not be paid by customers.
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An automatic reinvestment plan is a service offered by mutual funds that helps an investor earn compound interest on their investments
Mutual fund pools assets from shareholders to invest in securities like stocks, bonds, money market instruments, and other assets. they give access to individual or small investors to professionally manage portfolios of bonds, equities, and other securities.
They provide a service called an automatic reinvestment plan, in which they reinvest the investment gains back into an investor's portfolio rather than paying them out as distributions. the benefit of an Automatic reinvestment plan is of getting compound interest, It different from another service they provide which is an automatic investment plan, which just allows the investors to contribute money to an investment account on a regular interval and to invest in a pre-set portfolio.
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Answer:
B) Demand for concert decreases. As a result of the shift, ticket price decreases.
Explanation:
A shift in demand that is as a result of other factors except for price results in a shift of demand. A reduction of price as a result of the financial crises will lead to a shift of demand to the left.
Demand for cinema tickets will reduce at all price level.
Referring to the attached diagram the demand shift will result in lower quantity demanded from Q to Q2.
Also there is a reduction of equillibrum price from P to P2.
