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Alisiya [41]
3 years ago
14

Wilson is currently operating at maximum capacity. The firm has a net income of $2,250, total assets of $24,600, long-term debt

of $9,800, accounts payable of $2,700, dividends of $900, and total equity of $12,100. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 5 percent?
Business
1 answer:
Step2247 [10]3 years ago
6 0

Answer:

As a result in the increase in sales, the firm debt will decrease by 187.5 dollars

Explanation:

income of 2,250

dividends of 900

<em><u>payout ratio:</u></em> 900/2,250 = 0.4

income will increase by 5%

2,250 x 1.05 = 2,362.5‬

retained earnings break even:

2,362.5 x ( 1 - 0.4) = 1,417.5

increase in assets:

24,600 x 0.05 = 1,230

now we post this into the accounting equation:

Assets = liab+ equity

+1,230 = liab + 1,417.5

liab = -187.5

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Answer:

D : $88,800

Explanation:

<u>Cost of goods manufactured :</u>

Direct Material used in production                         $ 21,300

Indirect Material used in production                       $  3,700

Direct Labour                                                           $ 34,100

Direct Labour                                                           $  5,900

Manufacturing overhead                                       <u> $ 16,600 </u>

Total Manufacturing cost                                        $ 75100

Add:Beginning Work in process inventory            $7,200

Less: Ending Work in process inventory                <u>$ 0       </u>

Cost of Goods Manufactured                                 <u>$88,800</u>

6 0
3 years ago
A Company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Sec
gogolik [260]

Answer: $65

Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.

So, in the given question the two units sold would be costing $80 and $95

Hence,

Gross profit = $240 - ($80 + $95)

                    = $65

3 0
2 years ago
Which 2 statements are correct regarding adjusting sales tax on a return?A. Rounding up should post to an income account B. Pena
kogti [31]

Answer:B and D i think

Explanation:

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3 years ago
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iren2701 [21]

Answer:

A) primary research

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Primary research is defined as a methodology used by researchers to collect data directly, rather than depending on data collected from previously done research. Technically, they “own” the data.

Primary research is solely carried out to address a certain problem, which requires in-depth analysis.

Companies that specialize in interviewing, observing, recording and analysing the behaviour of those who purchase good and service are called primary research suppliers.

7 0
3 years ago
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Alona [7]

Answer:

D. Job specifications

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7 0
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