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Paraphin [41]
3 years ago
9

The Baldwin Company currently has the following balances on their balance sheet: Total Assets $260,881 Total Liabilities $150,67

3 Retained Earnings $52,700 Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year
Business
1 answer:
bonufazy [111]3 years ago
7 0

Answer:

common stock = $80,308

Explanation:

assets = liabilities + equity

current balance:

$260,881 = $150,673 + $110,208

$110,208 = common stock + retained earnings = $57,508 + $52,700

next year:

net income = $44,200

dividends = $12,000

assets = $260,881 + $55,000 = $315,881

liabilities = $150,673

equity = $315,881 - $150,673 = $165,208

retained earnings = $52,700 + $44,200 - $12,000 = $84,900

common stock = $165,208 - $84,900 = $80,308

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An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement F
yawa3891 [41]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %

Explanation:

Contribution Margin = Contribution ÷ Sales

Where,

<em>Contribution = Sales - Variable Costs</em>

where,

Sales :

Sales = $ 900,000

Number of Books Sold = $ 900,000 ÷ $50

                                      = 18,000 books

Variable Costs Calculation :

Cost of goods sold                                                           $630,000

Variable selling expenses ($5 × 18,000 books)               $90,000

Variable administrative expenses( 4% × $ 900,000)       $36,000

Total Variable Costs                                                         $756,000

Therefore,

Contribution Margin =  $756,000÷  $ 900,000

                                  = 0.84 or 84 %

7 0
3 years ago
Jake wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacati
In-s [12.5K]

Answer:

1. Jake can easily determine that the price of the computer is more than the price of the vacation.  ⇒ UNIT OF ACCOUNT

2. Jake has $1,574 in his checking account.  ⇒ STORE OF VALUE

3. Jake writes a check for $1,299. ⇒ MEDIUM OF EXCHANGE

Explanation:

The four functions of money are:

  1. unit of account: since money is a common denominator, it helps to assign value to different goods and services.
  2. store of value: you can save money in order to purchase gods and services in the future.
  3. medium of exchange: you can purchase and sell goods and services using. money
  4. standard of deferred payment: money allows loans that require future payments of both principal and interest.

5 0
3 years ago
The break-even point is that level of activity where: Multiple Choice a) total revenue equals total cost. b) variable cost equal
shtirl [24]

Answer:

a) total revenue equals total cost.

Explanation:

The break-even point is the level of activity in which total revenue equals total cost. It can also be defined in terms of  units sold for a year is as the fixed expenses for the year divided by the contribution margin per unit of product. Note that exactly at the break-even point, there is no profit or loss.

Therefore, the answer is alternative a).

3 0
3 years ago
A 2-year T-note was issued 9 months ago with a face value of $1000. It pays a 5% per annum coupon, paid semiannually. Suppose th
grandymaker [24]

Answer:

The Price of Bond today = $997.07

Explanation:

Semi annual coupons = $1000 * 5% / 2

Semi annual coupons = $25

As 9 months is already over in the two year bond, the coupons are payable

3 months from now, 9 months from now and 15 months from now.

The present value of all these coupons and the principal should be equal to the price of the bond today.  In case of continuous compounding, the formula for Present Value of any future Cash flow C is C*e^(-r*t).

Price of Bond = $25 * e^(-0.06*3/12) + 25*e^(-.061*9/12)+ 1025*e(-0.062*15/12)

Using the value of e as 2.71828

Price of Bond = $25 * 2.71828^(-0.06*3/12) + 25*2.71828^(-.061*9/12)+ 1025*2.71828(-0.062*15/12)

Price of Bond = $ 25 * 2.71828 ^-0.015 + 25*2.71828^-0.04575 + 1025*2.71828^-0.0775

Price of Bond = $ 25 * 1/2.71828^0.015 + 25*1/2.71828^0.04575 + 1025*1/2.71828^0.0775

Price of Bond = $997.07

7 0
3 years ago
Cindy is taking out a loan today. The cash amount that she will receive today is equal to the present value of the lump sum paym
Alexxandr [17]

Answer:

Option E, PURE DISCOUNT.

Explanation:

There are different types of loan, some are; principal only loan, interest only loan, amortized loan, compound loan, pure discount loan...

A pure discount loan is a loan in which the borrower receives money today and repays a single lump at some time in future. It is the simplest form of loan.

Practically, it means the borrower will not pay any interest over the years; instead the interest is earned when the loan is paid back at maturity.

For example, imagine you wanted to borrow $20,000 and pay back twelve months later. The interest and charges came to $2,000, you would receive $18,000 from the lender. But, you would still have to pay back the whole $20,000.

Therefore, since Cindy will be paying a lump sum equal to the cash amount she received today, it means that the lender already calculated the interest and other related charges and then discounted it from the face amount thereby making it equal at the point of repayment. The option that best suits the question is E, the type of loan PURE DISCOUNT.

6 0
3 years ago
Read 2 more answers
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