Answer:
ROE = 20%
Explanation:
Given:
Common equity = $350,000
Net income = $70,000
Find:
ROE
Computation:
ROE = [Net income/Common equity]100
ROE = [$70,000/$350,000]100
ROE = 20%
Answer:
C) It would allow them to look at the furniture products that the company offers.
Explanation:
Setting up a website would be beneficial to the company, which will have its products on display, and may even make online sales, but especially to consumers, who can observe the types of wood products that this company produces. This can make consumers analyze products without having to go to the store, which makes buying something more comfortable.
Answer:
B. $0
Explanation:
The International Financial Reporting Standards (IFRS) specifically Internal Accounting Standards (IAS) 18 on revenue specifically states that where there is a barter transaction that is the exchange of goods or services, the transaction will not be recognized as one generating revenue when the goods or the services being exchanged are similar in nature. If it is not recognized as a revenue generating transaction then no revenue will be recognized as well
Since Kelly Corp barters goods with Ace Corporation established to be similar in nature , then according to IFRS Kelly cannot recognize any income on the transaction.
Answer:
d. The determination of the principal.
Explanation:
An independent contractor is one who is not bound by any affiliations to either a company, a country or an ideology.
He is hired to do a specific work and based on his contract, paid after, before or during the work.
The determination of the principal in no way affects his work as he isn't bound to the company as an employee and is a free agent. He is a professional who is not slack in his work and works efficiently to earn his pay
Answer:
7.59%
Explanation:
the dividend is a perpetuality, so the formula for determining the price is :
Price = dividend / required rate of return
$39.50 = $3 / required rate of return
required rate of return = $3 / $39.50 = 0.0759 = 7.59%
