Answer:
D
Explanation: <u>HAVE A GOOD DAY:)</u>
Answer:
The development should be not be considered as it not a relevant cash outflow
The $254,000 sale price for existing line is a relevant cash inflow
Cash flows:
Year 0 -$$1,536,000
Years 1-13 $746,000
Explanation:
The development cost has already been incurred,it is not a relevant cash outflow since the cash flows to be considered are those would be incurred in the future in respect of the new line of club heads.
The sale price of the existing line is a relevant inflow as it would only be received as a result of switching to the new line of club heads.
The relevant cash flow from year 1 to 13 is computed thus:
year 0 cash outflow would be the cost of new equipment less the sale price of existing line i.e -$1,790,000+$254,000=-$1,536,000
In years 1 to 13 ,there would cash inflow of $746,000 in each year
Answer:
It is True that potential investors, in analyzing the profit potential for a distressed property, generally consider a financial framework including the acquisition phase, the holding period phase and the disposition phase
Explanation:
Acquisition is the process of gaining ownership or control of a real estate. It is usually sold by brokers to investors.
In the case of distressed property, there is always a holding period
Holding periods are usually targeted at 2-5 years, during which the asset that has been acquired is renovated.
The end of the holding period transitions to the beginning of the disposition phase.
During the disposition phase, the real estate which could be a distressed building is being disposed or handed over to the owners. At this phase, complete documentation is done and handed to both parties to endorse.
A comprehensive financial framework detailing all the expenditure across the acquisition phase, holding period and the disposition phase must be in place in order to get an accurate calculation of expenditure data to used in analyzing the profit potential of a property.
Answer:
13,500
Explanation:
Outstanding shares = issued shares - Treasury shares
19,000 - 5,500 = `13,500
Shares is a method through which firms raise capital.
Authorised shares are the maximum number of shares a company can issue to investors
Outstanding shares are the total number of shares sold to investors
Treasury shares are shares that have been issued and later repurchased by the company
Issued shares are the shares that a company issues
Answer:
See below
Explanation:
With regards to the above, the entry to record of March 30 would be;
Debit stock dividends $140,400
Credit common stock dividends distributable $108,000
Credit paid in capital in excess of par $32,400
Calculations;
= 60,000 shares of $10 par value
= $600,000 × Stock dividend
= $600,000 × 18%
= $108,000
Stock dividend = 60,000 shares of $13 market value
= $780,000 × Stock dividend
= $780,000 × 18%
= $140,400
Additional paid in capital = $140,400 - $108,000 = $32,400
