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3 years ago

What is the purpose of a trial balance?

1 answer:

7 0

Preparing a trail balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers. The trail balance is a working document used by accountants as the basis to prepare financial statements. The purpose is to ensure that for every debit listed there is a corresponding credit recorded, shares Accounting-Simplified. If the totals do not balance, an investigation may be made.

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Eccles Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0%

Feliz [49]

Answer:

$587,500

Explanation:

You are required to calculate the value of the levered firm;

vL = vU + Dt, whereby;

vL = Value of levered firm

vU = value of unlevered firm

Dt = debt * tax ; which is the tax shield

Find value of unlevered firm;

vU = [EBIT(1-tax) ]/ rE

= [100,000(1-0.30)] / 0.16

= 437,500

Value of levered firm;

vL = 437,500 + (500,000*0.30)

= 437,500 +150,000

= $587,500

6 0

3 years ago

Suad Alwan, the purchasing agent for Dubai Airlines, is interested in determining what he can expect to pay for airplane number

lions [1.4K]

Answer:

Alwan expect to pay for airplane 4= $747818.48

Explanation:

given data

expect to pay airplane = 4

3rd plane produce = 20,000 hours

learning curve = 85%

solution

As here logarithmic approach allow get labor for any unit, TN, as

TN = T1(Nb)

here TN is time for the Nth unit and T1 is hours to produce the first unit

b = (log of the learning rate) ÷ (log 2) = slope of the learning curve

T3 = T1(3log(0.85)÷log2)

so we get

So Alwan expect to pay for airplane 4 = $747818.48

6 0

3 years ago

Mauve starts a business that specializes in procuring and selling antique items. Her business caters specifically to individuals

stepan [7]

Answer:

The opportunity of exploiting market niches is highlighted in the given scenario.

Explanation:

A market niche is "a small but profitable segment of a market suitable for focused attention by a marketer. Market niches do not exist by themselves, but are created by identifying needs or wants that are not being addressed by competitors, and by offering products that satisfy them. See also market segmentation. "

Reference: WebFinance Inc. “What Is Market Niche? Definition and Meaning.” BusinessDictionary.com, 2019

6 0

3 years ago

A rapid increase in the price of goods caused by printing too much money is called _____.

Taya2010 [7]

It’s called hyperinflation

5 0

3 years ago

Read 2 more answers

A company produces a single product. Variable production costs are $12.50 per unit and variable selling and administrative expen

wlad13 [49]

Answer:

value of ending inventory under variable production is $104375

Explanation:

given data

Variable production costs = $12.50 per unit

variable selling and administrative expenses = $3.50 per unit

Fixed manufacturing overhead totals = $41,000

Fixed selling and administration expenses total = $45,000

production = 4,500 units

sales = 3,850 units

to find out

the dollar value of the ending inventory under variable costing would be

solution

we find here ending inventory that is express as

ending inventory = production - sale

ending inventory = 4500 - 3850

ending inventory = 8350

variable production cost of 8350 units are

variable production cost = 8350 × $12.50

variable production cost = $104375

so value of ending inventory under variable production is $104375

8 0

3 years ago