Answer:
A periodic inventory method is a method where the inventory account is adjusted at the end of each accounting period and not continuously as with the perpetual method. All inventory purchased is recorded to a purchases account. Cost of goods sold is calculated by adding purchases to beginning inventory and then subtracting ending inventory. The following journal entries are examples of how to account for inventory under a periodic management method.
explanation:
Answer:
Price will be 6.6
Explanation:
You can find the attached file.
<span>Which of the following is not an element required for bringing a negligence claim? Assumption of risk. The four elements required for a negligence claim are: duty, breach of duty, proximate cause and injury or damages. Negligence is defined as not taking proper care of something resulting in injury or harm to something or someone else.</span>
Answer:
$162,520
Explanation:
As per the given question the solution of retained earnings is provided below:-
To reach at retained earning first we need to find out the total expenses and net income which are as follows:-
Total Expenses = Advertising Expense + Income Tax Expense + Rent Expense + Supplies Expense
= $40,000 + $26,000 + $23,400 + $33,800
= $123,200
now,
Net income = Revenue - Expenses
= $200,000 - $123,200
= $76,800
So, the Retained Earnings as of December 31, 2019 = Retained Earnings of January 1, 2019 + Net Income - Dividend
= $115,720 + $76,800 - $30,000
= $192,520 - $30,000
= $162,520
Answer:
Raising the Funds through Retained Earnings
WACC = Ke(E/V) + Kp(P/V) + Kd(D/v)(1-T)
WACC = 14.7(0.36) + 12.2(0.06) + 11.1(0.58)(1-0.40)
WACC = 5.292 + 0.732 + 3.8628
WACC = 9.89%
Raising New Equity
WACC = Ke(E/V) + Kp(P/V) + Kd(D/v)(1-T)
WACC = 16.8(0.36) + 12.2(0.06) + 11.1(0.58)(1-0.40)
WACC = 6.048 + 0.732 + 3.8628
WACC = 10.64%
Difference in WACC = 10.64% - 9.89%
= 0.75%
Explanation:
WACC equals cost of equity multiplied by proportion of equity in the capital structure plus cost of preferred stock multiplied by proportion of preferred stock in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.
In this case, there is need to calculate WACC if funds were raised through retained earnings and WACC if funds were raised through new common stock. Then, we will determine the difference in WACC.
