Dividends are part of the return you receive on your investment when you buy stock.

The upward-sloping portion of the long-run average cost curve is a result of:.

iogann1982 [59]

Answer:

average cost is increasing

Explanation:

7 0

2 years ago

Alfonza Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding ba

Murrr4er [49]

Answer:

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $25,400

Adjustment made:

Add: Decrease in accounts receivable $5,000 ($20,000 - $15,000)

Less: Decrease in accounts payable -$450 ($8,750 - $9,200)

Total of Adjustments $4,550

Net Cash flow from Operating activities $29,950

6 0

3 years ago

A U.S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.02 pe

LuckyWell [14K]

Answer:

$97,000

Explanation:

Data provided in the question:

Receivable amount = 100,000 Canadian dollar

Premium per unit = $0.02

Exercise price of put option = $0.94

Spot rate at maturity = $0.99

Now,

Dollars received from selling Canadian dollars in the spot market

= Receivables amount × Spot rate

= $100,000 × $0.99

= $99,000

Premium paid for options = Receivable amount × Premium per unit

= $100,000 × $0.02

= $2000

Therefore,

The net amount received by the corporation if it acts rationally

= Dollars received from selling Canadian dollars - Premium paid

= $99,000 - $2000

= $97,000

3 0

3 years ago

On May 1, 2018, Kelalani purchased land for $88,000 for use in her business. She sold it on May 1, 2019, for $82,000. If there a

Evgen [1.6K]

Answer: $6000 short term Capital loss

Explanation:

From the question, we are informed that on May 1, 2018, Kelalani purchased land for $88,000 for use in her business and that she sold it on May 1, 2019, for $82,000.

We are further told that there are no other sales of business or trade property. Based on this scenario, the loss treated for tax purposes on Kelalani's return will be a short term capital loss of $6000($88,000 - $82,000). It is a short term capital loss because the loss is for a period of a year or less.

4 0

4 years ago

Accounting Cycle Review 15 a-e

OLga [1]

Requirment: Prepare a Balance Sheet as at December 31, 2020.

Answer:

<h2>Cullumber Corporation</h2><h3>Balance Sheet as of December 31, 2020:</h3>

Current Assets:

Cash $61,140

Accounts Receivable 60,000

less allowance for doubtful 6,000 54,000

Inventory 23,300 138,440

Non-current Assets:

Land 67,200

Buildings 81,700

Accumulated Depreciation 28,050 53,650

Equipment 41,000

Accumulated Depreciation 17,890 23,110 143,960

Total Assets $282,400

Liabilities + Equity:

Current Liabilities:

Accounts Payable 19,500

Interest Payable 4,400

Dividends Payable 5,802

Unearned Rent Revenue 1,800 31,502

Non-current Liabilities:

Bonds Payable (10%) 44,000 $75,502

Equity:

Common Stock ($10 par) 38,000

Paid-in Capital in Excess of Par—Common 10,240

Preferred Stock ($20 par) 20,000

Paid-in Capital in Excess of Par—Preferred 3,000

Retained Earnings 138,258

Treasury Stock (2,600) 206,898

Total Liabilities + Equity $282,400

Explanation:

a) Cullumber Corporation's Unadjusted Trial Balance as of December 31, 2020:

Debit Credit

Cash $26,100

Accounts Receivable 60,000

Inventory 23,300

Land 67,200

Buildings 81,700

Equipment 41,000

Allowance for Doubtful Accounts $470

Accumulated Depreciation—Buildings 25,500

Accumulated Depreciation—Equipment 14,200

Accounts Payable 19,500

Interest Payable –0–

Dividends Payable –0–

Unearned Rent Revenue 7,200

Bonds Payable (10%) 44,000

Common Stock ($10 par) 28,000

Paid-in Capital in Excess of Par—Common Stock 5,600

Preferred Stock ($20 par) –0–

Paid-in Capital in Excess of Par—Preferred Stock –0–

Retained Earnings 65,330

Treasury Stock –0–

Cash Dividends –0–

Sales Revenue 570,000

Rent Revenue –0–

Bad Debt Expense –0–

Interest Expense –0–

Cost of Goods Sold 380,000

Depreciation Expense –0–

Other Operating Expenses 36,900

Salaries and Wages Expense 63,600

Total $779,800 $779,800

b) Cullumber Corporation's Adjusted Trial Balance as of December 31, 2020:

Debit Credit

Cash $61,140

Accounts Receivable 60,000

Inventory 23,300

Land 67,200

Buildings 81,700

Equipment 41,000

Allowance for Doubtful Accounts $6,000

Accumulated Depreciation—Buildings 28,050

Accumulated Depreciation—Equipment 17,890

Accounts Payable 19,500

Interest Payable 4,400

Dividends Payable 5,802

Unearned Rent Revenue 1,800

Bonds Payable (10%) 44,000

Common Stock ($10 par) 38,000

Paid-in Capital in Excess of Par—Common Stock 10,240

Preferred Stock ($20 par) 20,000

Paid-in Capital in Excess of Par—Preferred Stock 3,000

Retained Earnings 65,330

Treasury Stock 2,600

Cash Dividends 5,802

Sales Revenue 570,000

Rent Revenue 5,400

Bad Debt Expense 5,530

Interest Expense 4,400

Cost of Goods Sold 380,000

Depreciation Expense 6,240

Other Operating Expenses 36,900

Salaries and Wages Expense 63,600

Total $839,412 $839,412

c) Cash Account Adjustment:

Balance as per Trial Balance $26,100

Preferred Stock 23,000

Common Stock 24,000

Treasury Stock (11,960)

Adjusted Cash balance $61,140

d) Income Statement

Sales Revenue $570,000

Cost of goods sold 380,000

Gross profit $190,000

Rent Revenue 5,400

Total $195,400

less expenses:

Bad Debt Expense 5,530

Interest Expense 4,400

Depreciation Expense 6,240

Other Operating Expenses 36,900

Salaries and Wages Expense 63,600 116,670

Net Income $78,730

Retained Earnings 65,330

Dividends (5802)

Retained Earnings carried forward $138,258

7 0

3 years ago