Answer:
Daniel Hair Stylists
Balance Sheet
For the year ended December 31, 2018
<u>Assets</u>
Current assets
- Cash $1,000
- Accounts Receivable $900
- Office Supplies <u> $600</u>
Total current assets $2,500
Non-current assets
- Equipment, net $19,700
- Accumulated depreciation <u> ($2,000) $17,700</u>
Total non-current assets <u>$17,700</u>
Total assets $20,200
<u>Liabilities</u>
Current liabilities
- Accounts Payable $900
- Interest Payable <u>$550
</u>
Total current liabilities $1,450
Total long term liabilities <u>$3,400</u>
Total liabilities $4,850
<u>Owner's Equity</u>
Owner's equity
- Retained earnings $4,700
- Common stock <u> $10,650</u>
Total owner's equity <u> $15,350</u>
Total liabilities and owner's equity $20,200
Answer:
$19,144.61
Explanation:
The first step would be to determine the present value of $1.25 million. After, the future value of that amount in 2 years has to be calculated
The formula for calculating future value:
P = FV / (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$1.25 million / (1.135)^35 = $14,861.23
Now we find the future value using this formula :
FV = P (1 + r)^n
$14,861.23 x (1.135)^2 = $19,144.61
Answer:
the annual after-tax cost of financing the purchase of the home is $23,638.40
Explanation:
The computation of the annual after-tax cost of financing the purchase of the home is shown below:
= Installment amount - tax saving
= $33,200 - ($29,880 × 32%)
= $33,200 - $9,561.60
= $23,638.4
hence, the annual after-tax cost of financing the purchase of the home is $23,638.40
We simply applied the above formula
Answer:
15.83%
Explanation:
Calculation to determine is the standard deviation of the returns on Kurt’s Adventures, Inc. stock
First step is to determine l E(r)
E(r) = (.30 *.30) + (.55 *.12) + (.15 *-.20)
E(r)= .09 + .066 -.03
E(r)= .126
Second step is to determine Var
Var = .30 *(.30 -.126)^2 + .55 *(.12 -.126)^2 + .15 *(-.20 -.126)
Var=0090828 +.0000198 + .0159414
Var= .025044
Now let determine the Std dev
Std dev = √.025044 = .15825
Std dev= 15.83 percent
Therefore the standard deviation of the returns on Kurt’s Adventures, Inc. stock.is 15.83 percent
Answer: Cost of Gods Sold
Explanation:
The Cost of Goods sold in the income statement is calculated thus;
= Opening inventory + Purchases - Closing stock
Looking at the formula above, one can see that closing stock reduces the Cost of Goods sold. If inventory is therefore overstated, it would reduce Cost of Goods sold more than it should which would result in the Cost of Goods sold being understated.
