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Furkat [3]
3 years ago
9

The accountant for Walter Company is preparing the company's statement of cash flows for the fiscal year just ended. The followi

ng information is available: Retained earnings balance at the beginning of the year $ 129,000 Cash dividends declared for the year 49,000 Proceeds from the sale of equipment 84,000 Gain on the sale of equipment 7,600 Cash dividends payable at the beginning of the year 21,000 Cash dividends payable at the end of the year 23,600 Net income for the year 95,000 The amount of cash dividends paid during the year would be:
Business
1 answer:
lapo4ka [179]3 years ago
6 0

Answer:

$25,400

Explanation:

Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.

The movement in the retained earnings balance may be expressed as

Opening balance + net income - cash dividend paid = closing retained earnings balance

Cash dividend declared - Cash dividend paid =  Cash dividend payable

$49,000 - Cash dividend paid = $23,600

Cash dividend paid = $49,000 - $23,600

= $25,400

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accounting A John Deere tractor acquired on January 4 at a cost of $120,000 has an estimated useful life of 25 years. Assume tha
Sedbober [7]

Answer:

$4,800 each

Explanation:

The computation of the depreciation expense for the first two year under the straight-line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($120,000 - $0) ÷ (25 years)

= ($120,000) ÷ (25 years)  

= $4,800

In this method, the depreciation is same for all the remaining useful life

Hence, the depreciation of $4,800 is to be charged separately for each year

7 0
3 years ago
Honduras is a small economy in central america. it keeps a fixed exchange rate with the us. capital is perfectly mobile. you may
rosijanka [135]

Answer:

Given that Honduras is a small economy in Central America, and it keeps a fixed exchange rate with the US, and capital is perfectly mobile, but interest rates are three percent in the US and six percent in Honduras, the explanation of the difference in these interest rates are as follows:

Honduras has a higher interest rate, meaning that its sovereign bonds pay higher values than the American ones, as well as its banks also pay higher interests on their investments compared to American banks.

This is so for a double reason: on the one hand, because the Honduran economy is less reliable than the American economy, which is larger and therefore more solvent and capable of overcoming eventual crises, with which the risk of default is less.

On the other hand, the Honduran economy is more dependent on foreign investment, so it must offer higher interest rates to attract such investments.

5 0
3 years ago
Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled
inn [45]

Answer:

26.4%.

Explanation:

Net Profit:

= Saving of Labor & other Costs - Maintenance Cost of Machine -  Depreciation On Machine (100,000/ 16 years)

= $40,000 - $10,000 - $6,250

= $23,750

Initial Investment:

= Cost of new Machine - Salvage value of old machine

= $100,000 - $10,000

= $90,000

Simple Rate of Return = Net Profit ÷ Initial Investments

= $23,750 ÷ $90,000

= 0.264 × 100

= 26.4%

5 0
3 years ago
Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?
Alexeev081 [22]

Please see attached image to see the given data.

 

The trial balance totals of the debits and credits are $2,250 debit, $2,250 credit.

 

<span>$1000 (cash) + $500 (Equipment) + $750 (Salaries Expense) = $2,250 Debit

$350 (Accounts Payable) + $900 (Capital) + $1000 (Service Fees) = $2,250 Credit</span>

7 0
3 years ago
Nicki paid $900 for a camera that she thought was worth $1100 for all the features included in it. for the consumer electronics
FinnZ [79.3K]

Consumer surplus is difference between the amount that consumers are willing and able to pay for a good or service

In this case, Nicki is willing to pay $1,100 for the camera, but she is only asked to pay 900. So Nicki has a consumer surplus of $200

7 0
3 years ago
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