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iren2701 [21]
3 years ago
5

Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 20

19, the owner invested $33,000 additional cash in the business (in exchange for common stock) and the company paid a $36,000 cash dividend.
Equity, December 31, 2018
Equity, December 31, 2019
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2018 and 2019.
December 31 2018 2019
Cash $55,530 $10,900
Accounts receivable 30,142 23,632
Office Supplies 4,755 3,483
Office equipment 145,958 155,473
Trucks 57, 115 66, 115
Building 0 190, 398
Land 0 47,511
Accounts payable 79,245 39,303
Note payable 0 137,909
Business
1 answer:
satela [25.4K]3 years ago
7 0

Answer:

net income during 2019 = $109,045

Explanation:

total stockholder equity 2018 = assets - liabilities = $293,500 - $79,245 = $214,255

total stockholder equity 2019 = assets - liabilities = $497,512 - $177,212 = $320,300

change in equity from 2018 to 2019 = $106,045

$33,000 can be explained by additional capital invested, and the remaining  $73,045 corresponds to change in retained earnings

change in retained earnings = net income - dividends distributed

$73,045 = net income - $36,000

net income = $109,045

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Indicate the correct term to each description of a financing agent, activity, setting, or instrument.
Brilliant_brown [7]

Answer:

Indication of correct terms:

a. The reward a saver expects on loaned funds:  3. Interest rate

b. The cost a borrower pays for loaned funds:  3. Interest rate

c. The -difference between the real interest rate and the nominal interest rate:  1. Inflation rate

d. The percentage of disposable income that is kept as personal savings:  2. Saving rate

e. The term that indicates most people need to be incentivized to save:  4.Time preference

f. The result consumption exceeding income over a particular period: 5. Dissaving

Explanation:

1. Inflation rate is the ratio of the change in the prices of goods when compared with an indexed figure.

2. Saving rate is the ratio of savings kept behind from disposable income earned.  It shows the ratio of income not consumed when earned.

3. Interest rate is the ratio of the amount that is saved or loaned out that people would receive in order to incentivize them to save or lend and prefer the same amount today and in future.

4. Time preference is a term that shows that people value an amount of money today more than they value the same amount received in future.  So, they would rather spend that amount today than spending it tomorrow.

5. Dissaving is spending more than income and even tapping into or consuming from the savings account.

5 0
3 years ago
Typically banks rely on other banks to lend reserves to one another. Which interest rate do they charge for these loans
soldier1979 [14.2K]

Answer:

Federal funds rate

Explanation:

federal funds rate is simply known as the interest rate at which depository financial institutions borrows(lends) funds maintained at the federal reserve to other depository financial institutions usually or Maybe overnight.

It is simply the interest rate that one bank charges another for borrowing money overnight. Its importance is to help banks meet their reserve requirements and prevent bank failure and also may be use to stimulate the economy.

5 0
3 years ago
On May 10, 2020, Splish Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the
Amiraneli [1.4K]

Answer:

May 15, 2020

No Entry

June 15, 2020

Debit: Account Receivable 2,060

Credit Revenue 2,060

Debit COGS 1,380

Credit Inventory 1,380

July 15, 2020

Debit Cash 2,060

Credit Account Receivable 2,060

Explanation:

Preparation of the journal entries for Splish related to this contract.

May 15, 2020

No Entry

June 15, 2020

Debit: Account Receivable 2,060

Credit Revenue 2,060

Debit COGS 1,380

Credit Inventory 1,380

July 15, 2020

Debit Cash 2,060

Credit Account Receivable 2,060

4 0
2 years ago
why might a bank offer to make a loan to a consumer at a low initial rate which will increase after a set period of time?a. too
Whitepunk [10]

I believe the answer is: c. to make the loan look more attractive and competitive now

By offering it at low initial rate, the people who borrow money would experience low burden if they plan to return the money within short period of time. This would make them much more likely to obtain a loan, and it also would make the bank that create the loan program looks better compared to their competitors.

8 0
3 years ago
After spending months finalizing a marketing plan, the lead marketing manager presents it to the entire company. It soon becomes
Sauron [17]

The correct answer is A) alignment.

After spending months finalizing a marketing plan, the lead marketing manager presents it to the entire company. It soon becomes clear that the budget given in the plan is far lower than the marketing team had determined it would need. This mistake is likely a result of a lack of alignment.

This means that the marketing manager did not respect the parameters originally indicated. His numbers did not align with the necessities of the plan, which means that he did not take into consideration some important factors that at the end, affected the end result of the budget.

7 0
3 years ago
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