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3 years ago

How many of the following items are found on the balance sheet, rather than the income statement?

Business

1 answer:

hjlf3 years ago

8 0

Answer:

B) Six of these items are found on the balance sheet.

Explanation:

Six items fall under assets or liabilities or share capital, which only appear in the balance sheet rather than income statement.

The items are the following;

Accounts receivable

Accrued payable

cash

Plant and equipment

Marketable securities

Retained earnings

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A low P/E for a stock indicates that:

pishuonlain [190]

Answer:

(A). People may expect earnings to fall in the future, perhaps because the firm will be faced with increased competition.

Explanation:

Price Earnings ratio of a company represents market price per share of a company's stock in relation to it's earnings per share.

Price Earnings ratio(PER) is given by the following formula:

PER = $\frac{Market\ Price\ Per\ Share}{Earnings\ Per\ Share}$

A lower P/E Ratio indicates that a company's market price of a share is lower relative to it's earnings. This means the company's stock is undervalued.

It can also mean that the company's earnings have increased which in turn has increased it's earnings per share.

Investors in general expect lower earnings in future for the stock of a company with low P/E Ratio.

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3 years ago

Bramble Corp. purchased land as a factory site for $1305000. Bramble paid $121000 to tear down two buildings on the land. Salvag

AURORKA [14]

Answer:

Part 1

$1,422,940

Part 2

$331,480

Explanation:

cost of the land calculation

Purchase Price $1305000

Cost to tear down building $121000

Sale of Salvages ($8400)

Leagl fees $5340

Total $1,422,940

The cost of the land that should be recorded by Wilson Co. is: $1,422,940

cost of the building calculation

Architect's fees $47000

Insurance $3900

Liability insurance $4200

Excavation cost $15480

city for pavement $9900

Borrowing Costs $251000

Total $331,480

The cost of the building should be recorded by Wilson Co. is $331,480

4 0

3 years ago

The difference between your sales and your cost of goods sold is known as your what

Anettt [7]

Answer:

profit.

Explanation: its just right

8 0

3 years ago

Perine, Inc., has balance sheet equity of $5.4 million. At the same time, the income statement shows net income of $783,000. The

S_A_V [24]

Answer:

The target stock price in one year is $149.93

Explanation:

Fly Away, Inc., has

Balance sheet equity of (E) = $ 5,400,000

Also, the income statement shows net income of (NI) = $783,000.

The company paid dividends of (D) = $438,480

Shares of stock outstanding (N) = 100,000

Benchmark PE ratio = 18

Question = what is the target stock price in one year?

We need the expected EPS at the end of next year and not this year.

EPS this year, E₀ = NI / N

= 783,000 / 100,000

= $ 7.83

Retention Ratio, "R" = 1 - Dividend payout ratio = 1 - D/NI

= 1 - 438,480 / 783,000

= 1 - 56.00%

= 44.00%

Return on equity, ROE = NI / E

= 783,000 / 5,400,000

= 14.50%

Growth rate in earnings, g = R x ROE

= 44.00% x 14.50%

= 6.38%

Hence, expected EPS next year, E₁ = E₀ x (1 + g)

= $ 7.83 x (1 + 6.38%)

= $ 8.33

Hence, target price next year, P = Benchmark PE ratio x E₁

= 18 x $8.33

= $149.93

The target stock price in one year = $149.93

4 0

3 years ago

The set of all possible sample points (experimental outcomes is called

AysviL [449]

The set of all possible sample points [experimental outcomes] is called the sample space.

4 0

3 years ago

Read 2 more answers