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Verdich [7]
3 years ago
15

Roscoe's fixed assets were purchased three years ago for $1.8 million. these assets can be sold to stewart's today for $1.2 mill

ion. roscoe's current balance sheet shows net fixed assets of $960,000, current liabilities of $348,000, and net working capital of $121,000. if all the current assets were liquidated today, the company would receive $518,000 cash. the book value of the firm's assets today is _____ and the market value is ____.
Business
1 answer:
Tasya [4]3 years ago
6 0

Book value of the assets is the amount at which it is shown in the balance sheet of the company. Market value of the assets is the total value of the assets the organization will receive if it is liquidated today.

Book value of firm’s total assets = Book value of firm’s current assets + Book value of firm’s fixed assets

= ($348,000 + $121,000) + $960,000

= $1,429,000

Market value of firm’s total assets = Market value of firm’s current assets + Market value of firm’s fixed assets

= $518,000 + $1,200,000

= $1,718,000

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1 year ago
The normal balances of sales, sales discounts, and sales returns and allowances are ________. debit, credit, and credit, respect
Y_Kistochka [10]
<h3><u>Answer;</u></h3>

credit, debit, and debit, respectively

<h3><u>Explanation</u>;</h3>

Normal balance of sales; Credit

Normal balance of sales discount; Debit

Normal balance of sale returns and allowances; Debit

  • A normal balance is the expectation that a particular type of account will have either a debit or a credit balance.
  • The normal balance of sales is credit.
  • The sales returns and allowances account is subtracted from sales because these accounts have the opposite effect on net income. Therefore, sales returns and allowances is considered a contra‐revenue account, which normally has a debit balance.
  • The account Sales Discounts is referred to as a contra-revenue account. Therefore;  its is debit balance.
5 0
4 years ago
A large national bank charges local companies for using their services. A bank official reported the results of a regression ana
Snowcat [4.5K]

Answer:

The correct option is (b).

Explanation:

The regression equation to predict the bank's charges (Y) measured in dollars per month for services rendered to local companies based upon the company's sales revenue (X) measured in millions of dollars is:

\hat Y=-3100+27X

The <em>y</em>-intercept of the line is, -3100.

The slope of the line is, 27.

The <em>y-</em>intercept of a regression line is defined as the average value of the dependent variable when the independent variable value is 0.

The dependent variable, in this case, is the bank's charges and the independent variable is the company's sales revenue.

As the company's sales revenue cannot be $0, the <em>y</em>-intercept cannot be interpreted.

Thus, the correct option is (b).

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3 years ago
HH Industries has 50 million shares that are currently trading for $4 per share and $200 million worth of debt. The debt is risk
ELEN [110]

Answer:

12%

Explanation:

For computing the equity cost of capital first we have to determine the weight of the capital structure after that the WACC and then finally equity cost of capital which is shown below:

Weight of capital structure

For debt  

= $200 million ÷ $400 million

= 0.50

For equity

= 50 million × $4 ÷ $400 million

= 0.50

Now the WACC is

= 0.50  11% + 0.50 × 5%

= 8%

Since the value fo equity is declined by

= 50 × $3

= $150

Now the equity cost of capital is

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= 8% + (8% - 5%) × (200 ÷ 150)

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Leading others in cross-cultural situations is complicated. Which of the following is NOT one of the many reasons why such situa
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