Types of current assets

Robert is a technology officer in an Umerian firm and he manages the firm's operations at its facility in Elador. Robert is cons

Zolol [24]

Answer:

B) The high school graduation rate in Elador is higher than in neighboring countries.

Explanation:

The new technology that Robert wants to install at Elador is supposed to improve productivity and reduce labor but if the technology is installed, it may cause unemployment in Elador because of the high rate of high school graduates in Elador.

The high school graduates would have lesser chance of finding employment if the technology that improves productivity and reduces labor is installed. Because machine would replace tasks that humans could have done, there would be no need to employ human labor thereby increasing unemployment rates.

4 0

2 years ago

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Diaz Company owns a milling machine that cost $126,600 and has accumulated depreciation of $92,600. Prepare the entry to record

Vlada [557]

Answer:

The Journal entries are as follows:

(i)

Accumulated Depreciation - Machine Equipment A/c Dr. $92,600

Loss on Disposal A/c Dr. $34,000

To Machine Equipment $126,600

(To record the disposal)

(ii)

Cash A/c Dr. $17,500

Accumulated Depreciation - Machine Equipment A/c Dr. $92,600

Loss on sale/disposal A/c Dr. $16,500

To Machine Equipment $126,600

(To record the sale)

(iii)

Cash A/c Dr. $34,000

Accumulated Depreciation - Machine Equipment A/c Dr. $92,600

To Machine Equipment $126,600

(To record the sale)

(iv)

Cash A/c Dr. $40,900

Accumulated Depreciation - Machine Equipment A/c Dr. $92,600

To Gain on sale/disposal A/c $6,900

To Machine Equipment $126,600

(To record the sale)

4 0

3 years ago

Luxx Inc. currently has assets to $5 million, zero debt, is in the 40 percent federal- plus-state tax bracket, has a net income

kakasveta [241]

Answer: a.)$25 ; b.) $30.96

Explanation:

A.) Stock's current price per share:

Net income = $1,000,000

Dividend paid = 0.40 x $1,000,000 = $400,000

Dividend per share before recapitalization = $400,000 / 200,000 = $2

Price of the share before recapitalization is calculated as:

D1 = $2 × 1.05 = $2.10

P0 = D1/Ke - g

= $2.10/ 0.134 - 0.05

= $25

B.) Portion of equity after recapitalization = (200, 000 x $25) - $1,000,000 = $4,000,000

Portion of debt = $1,000,000

Revised WACC after recapitalization = Ke x E/V + Kd(1-t) x D/V

= 0.145 x $4,000,000/$5,000,000 + 0.11 x (1-0.40) x $1,000,000/$5,000,000

= 0.1292

= 12.92%

Revised net income is calculated as:

Before tax income = $1,000,000/0.60 = $5M

Interest = 0.11 x $1,000,000 = $110,000

Earning before tax = $1556666

40% of tax = $622,666.4

Net income = $933,999.60

Revised dividend = $933,999.60 x 0.40 = $373599.84

DPS = $373599.84/(200,000 - ($1,000,000/$25))

$373599.84/160,000

= $2.335

Revised price of the share after recapitalization:

$2.335 x 1.05 / 0.1292 - 0.05

2.45175 / 0.0792

= $30.96

8 0

2 years ago

What is the safest way to dispose of old bank acvount statements

AysviL [449]

Since we are relying on our bank statements as evidence in many of the scenarios already discussed above, they should be kept for probably five years (maybe slightly longer). If you don't get physical bank statements mailed to your home, you should take it upon yourself to print them out monthly. Canceled checks should be kept for no longer than a couple of years, unless you need them to back up tax deductions and then <span>On tax records, many people would say just three years as that is the longest timeframe the IRS can generally go back and audit you. Three years would not be sufficient, however, as the IRS can go back much longer than this if you are suspected of substantially under reporting your income or other tax fraud. This is a tough one, but I think five to seven years is a good guideline here</span>. Canceled checks should absolutely be shredded before being disposed of.

I hope this answer helps! feel free to ask any additional questions :)

7 0

2 years ago

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Does the richest person in the world face the problem of scarcity?

Morgarella [4.7K]

Answer:Yes, because even if you have money you will never be able to satisfy all of your wants and must therefore make choices.

Explanation:

Economists say our "want " exceeds our "have" nomatter what the state of economy we find ourselves in but what we want always exceed what we have.

We may accumulate the greatest riches of this world but still we may even desire and want to buy another planet hypothetically speaking.

We are always craving for more than what we have no matter how large or huge what we have is but still our hearts yearns for more than that.

The more wealth we accumulate the more our desires increase because we keep wanting the next thing that is better than what we already have.

4 0

2 years ago