Answer:
8.94%
Explanation:
Firstly, we will need to find total equity and total debt of Harrington Inc inorder to apply the Dupont equation for getting ROE
Harrington's total debt = 15.00 % × $250,000
= $37,500
Harrington's total equity will be; applying accounting equation
Asset = Liabilities + Owner's equity
Owner's equity = Assets - Liabilities
= $250,000 - $37,500
= $212,500
Therefore, using the Dupont equation, we can calculate the ROE as;
(NI/Sales) × (Sales/Total assets) × (Total assets/Total common equity)
= 19,000/325,000 × 325,000 /250,000 × 250,000/212,500
= 8.94%
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Answer:
The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows = $ 54,500
Explanation:
The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows = $ 54,500
<u>Dividends payable a/c</u>
<u>Particulars Amount Particulars Amount</u>
Balance b/d $ 13,000
Dividend paid (Cash) $ 54,500 Dividend declared $57,000
Balance c/d $ 15,500
$ 70,000 $ 70,000
Therfore, The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows = $ 54,500
Answer and Explanation:
The computation of the payback period for each investment is shown below;
For Option 1
= Initial Investment ÷ Annual Cash Flow
= $280,000 ÷ $134,569
= 2.081 Year
Here Annual cash inflow is
= Net income + Depreciation
= $80,769 + (($280,000 - $11,000) ÷ 5)
= $134,569
For Option-2
= Initial Investment ÷ Annual Cash Flow
= $200,000 ÷ $70,429
= 2.84 Year
Here Annual cash inflow is
= Net income + Depreciation
= $44,000 + (($200,000 - $15,000) ÷ 7)
= $70,429
Answer:
c. credit to notes payable
Explanation:
Based on the information given we were told that the Equipment which cost the amount of $16000 was purchased by paying the amount of $4000 as cash which means that if the company sign a NOTE PAYABLE for the remainder. The journal entry should include a: CREDIT TO NOTES PAYABLE
