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meriva
3 years ago
5

Rice Co. was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. During t

he first year of operations, net income was $25,000. On December 15, Rice paid a $2,000 cash dividend. No additional activities affected equity in Year 6. At December 31, Year 6, Rice's liabilities had increased to $94,000. In Rice's December 31, Year 6 balance sheet, total assets should be reported atA) $600,000B) $617,000C) $598,000D) $692,000
Business
1 answer:
Mkey [24]3 years ago
8 0

Answer:

B) $617,000

Explanation:

Issuance capital of 500,000 shall remain constant. Out of the current year net earnings 25000 we are paying 2000 as dividend so, that adds to the owners equity = 23000.

Total liabilities = total assets = 500000 + 23000 + 94000 = 617000

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3 years ago
Terms of a lease agreement and related facts were:
Feliz [49]

Answer:

1) January 1, 2018, asset leased

Dr Lease receivable 550,000

    Cr Equipment 550,000

January 1, incremental costs associated with lease transaction

Dr Lease receivable 6,652

    Cr Cash 6,652

January 1, 2018, first lease payment collected

Dr Cash 200,000

    Cr Lease receivable 200,000

2) to calculate the effective rate we can use the present value of an annuity due formula

PV annuity due factor, 3 periods, ?% = present value of lease receivable / annual payment = $556,652 / $200,000 = 2.78326

Now we must use an annuity due table to determine a possible rate. In this case, the exact rate is 8%.

3) December 31, 2018, interest receivable on lease contract

Dr Interest receivable 28,532

    Cr Interest revenue 28,532

interest receivable = ($556,652 / $200,000) x 8% = $28,532

5 0
3 years ago
If a corporation has only one class of stock, it is referred to as preferred stock. solitary stock. common stock. classless stoc
riadik2000 [5.3K]

Common stock

If a corporation has only one class of stock, it is referred to as Common stock.

<h3>What is a common stock?</h3>
  • A security that symbolizes ownership in a firm is called common stock.
  • Common stock owners choose the board of directors and cast ballots for corporate rules.
  • Long-term rates of return are often higher with this type of stock ownership.

<h3>What is the name of common stock?</h3>

ordinary share

  • The ownership of equity in a firm is represented by common stock, a category of securities.
  • There are several words that are equivalent to the term "common stock," such as "common share," "ordinary share," or "voting share."

<h3>The benefits of common stock</h3>
  • More so than bonds or cash, equity ownership offers the highest rate of return over the long term.
  • Long-term returns on common stocks have exceeded 6% real, making them one of the finest ways to beat inflation.

To learn more about common stock visit:

brainly.com/question/13762106

#SPJ4

8 0
2 years ago
The number of days' sales in receivables a.is an estimate of the length of time the receivables have been outstanding. b.is not
Nostrana [21]

Answer:

a.is an estimate of the length of time the receivables have been outstanding.

Explanation:

The average collection period can be calculated as follows: 365 days in a year divided by the accounts receivable turnover ratio.

Days sales uncollected = Average Account receivable/Net sales*365

A short collection period means prompt collection and better management of receivables. A longer collection period may negatively affect the short-term debt paying ability of the business in the eyes of management.

6 0
3 years ago
An analyst following Barlow Energy has compiled the following information in preparation for additional analysis she has to incl
Vadim26 [7]

Answer:

FCFE: 99

Explanation:

FCFE: cash flow from operation - CAPEX + borrowing

we calcualte the cash flwo form operation using the indirect method:

net income - preferred dividends = available for common stock

income = 125  + 14 = 139

net income                                       139

depreciation expense                      50

change in working capital               (30)

          cash flow from operation: 159

CAPEX will be the long term assets investment

investment on fixed capital<u> 100 </u>

                          CAPEX       100

net borrowing                        40

159 -100 + 40 = 99

3 0
3 years ago
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