Answer:
net cash provided is $5,635
Explanation:
Amount ($)
Net Income 4,750
Depreciation 885
Change in inventory (200)
Change in accounts payable <u> 200 </u>
Net cash flows from Operation<u> 5,635</u>
The depreciation is a none cash item that was initially deducted to get the net income, hence it is added back in the cash flows statement.
An increase in inventory represents an outflow of cash hence the negative value. The increase in trade payable is an increase in a liability representing an inflow of cash hence it is positive.
Answer:
A profit Maring of 17.16% would be needed to achieve the target ROE of 20% if everything else holds constant
Explanation:
Return on Equity is the percent of net income achieve per dollar of equity
It is used to check the management of capital investment. (We give you this much, you generate that)
Where Average Equity:
In this case we have no information about beginning or ending so we go with the vlue provided for Equity: $875,000
Now we can see how much the net income needs to be to achieve 20% ROE
Net Income = 175,000
Now, which is the profit margin that generates this net income:
This represents the percentage of sales which turned into profits. It can be interpreted as:
cents of net income per dollar of sale.
Having our target net income, and holding the sales constant we need a profit margin of:
A profit Maring of 17.16% would be needed to achieve the target ROE of 20%
Answer:
E) none of the above
Explanation:
In the US, disparate impact cases generally apply to employment or housing practices where one or more minority groups are negatively affected more than other protected groups. Protected groups are based on gender, race, ethnic background, religion, etc. The difference between a disparate impact and a disparate treatment case is that disparate impact is generally involuntary, while disparate treatment is on purpose.
Answer:
A January 1, 2020
Dr Cash $54,600
Cr Bonds payable $52,000
Cr Premium on bonds payable $2,600
B. December 21 2022
Dr Bonds payable $52,000
Dr Premium on bonds payable $1,820
Cr Common stock $26,000
Cr Paid in capital in excess of Par $27,820
Explanation:
Preparation of the entry for Stonewall Corporation
A January 1, 2020
Dr Cash $54,600
($52,000+$2,600)
Cr Bonds payable $52,000
Cr Premium on bonds payable $2,600
(5%*$52,000)
(To record issue of bonds for premium)
B. December 21 2022
Dr Bonds payable $52,000
Dr Premium on bonds payable $1,820
(100%-30%*$2,600)
Cr Common stock $26,000
(52*10*50)
Cr Paid in capital in excess of Par $27,820
($52,000+$1,820-$26,000)
(To record conversion of bonds into Common Stock)
Answer:
The first transaction will be recorded as a note receivable, whereas the second transaction will be recorded as an account receivable.
Explanation:
The first transaction is a note recievable which is a credit instrument that requires the debtor to pay interest. The period for repayment bis usually above 30 days. Blair Automotive made the first customer sign a written promise to pay in full after six months with an annual interest rate of 3.5%.
The second transaction is an account recievable which are claims for payment that is raised by a business for delivery of products and services, it is payable within an agreed time frame. Accounts receivable does not attract interest payment. Blair Automotive sends the second customer a bill within the next two weeks, due within 30 days of receipt of the bill.
