Answer:
C. $4,500
Explanation:
The computation of the depreciation expense using the straight-line method is shown below:
= (Cost - residual value) ÷ Useful life of the asset
= $24,000 ÷ 48 months
= $500
Now for 9 months, it is
= $500 × 9 months
= $4,500
Hence, the depreciation expense is $4,500
Therefore the correct option is c. $4,500
Answer:
30.8
Explanation:
The solution of factor-rating score for Ling Services is provided below:-
Factor-rating score = (Weight for Factor A × Rating for Factor A) + (Weight for Factor B × Rating for Factor B) + (Weight for Factor C × Rating for Factor C)
= (0.50 × 30) + (0.20 × 46) + (0.30 × 22)
= 15 + 9.2 + 6.6
= 30.8
So, we have calculated the factor-rating score for Ling Services by using the above formula.
Answer:
A. Debit Cash $8,614; credit Dividend Revenue $8,614.
Explanation:
The journal entry for recording the dividend as on April 15 is shown below:
On April 15
Cash Dr (7,300 shares × $1.18 per share) $8,614
To Dividend revenue $8,614
(Being the dividend is recorded)
For recording this here we debited the cash as it increased the assets and credited the dividend revenue as the revenue is also increased
Therefore the correct option is A.
Answer:
12.75 %
Explanation:
Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.
Cost of Capital = E/V × Ke + D/V × Kd
Where,
E/V = Market Weight of Equity
= 0.55
Ke = Cost of Equity
= 15%
D/E = Market Weight of Debt
= 0.45
Kd = Cost of Debt
= 10%
Therefore,
Cost of Capital = 0.55 × 15% + 0.45 × 10%
= 12.75 %
Answer:
26.66 or 27%
Explanation:
The computation of the margin of safety percentage is shown below:
Margin of Safety
= 100 - Break Even %
= 100 - 73.33
= 26.66 or 27%
Working Note
Sales (3,000 units) $60,000
Less: Variable expenses -$42,000
Contribution margin -$18,000
CM Ratio (A) 30.00%
Fixed expenses (B) 13,200
Break Even Point C = B ÷ A 44,000
Break Even % of Total Sale 73.33%