Answer:
Option B $1.03
Explanation:
First lets calculate present value = cash flow(PVAF, life, rate) where PVAF = present value annuity factor
= 15(PVAF, 10, 5 years)
from the annuity table
Present value = 15 * 3,790 = $56.8618 million
The decrease in Present value will be $56.8618 million
Decrease in price = present value/number of share = 56.8618/66 = 1.033851 approx $1.03
Answer:
Revenues are closed out to Equity (Retained Earnings) for Corporate.
Explanation:
Actually, for both Sole Proprietor and Corporate, the account that is closed out to Capital or Equity is the difference between the Revenue and the Expenses for the accounting period. This is more specifically referred to as Net Income. This is the bottom-line profit, which is available for distribution to the owners of the entity in the form of capital withdrawals for Sole Proprietorships and dividends for Corporate entities.
Answer:
When Roosevelt cut spending in 1937, the U.S. economy returned to the abysmal economic status of 1932–1933
Explanation:
Economists believe that the recession during 1937 was the result of government's decision to curb government spending as this idea was immature. Even after Roosevelt's decision there was recession and political atmosphere heated up due to this.
Roosevelt and his advisors made a decision to curb government spending thinking it would take the country of recession. It is also believed that there was contraction in the money supply caused by 'Federal Reserve and Treasury Department' policies which may have contributed to the Recession. Unemployment grew worsening the situation.
The economist John Maynard Keynes supported the idea that government should increase the spending to increase demand.
Answer: A. In a partnership, income is taxed once at the individual level; whereas, in a corporation, income is taxed twice.
Explanation: Hi, a corporation is considered a legal entity for tax purposes, so it pays taxes based on the corporate tax rate for their income. But also the shareholders pay taxes based on the individual tax rate for the dividends payments received. There is a double taxation .
A partnership is a collection of individuals that come together, the partners are personally liable for the business’s obligations. So, each partner pays taxes based on the individual tax rate for the incomes.
Answer:
($39,700)
Explanation:
Cash outflows:
($40,000) exchanged for common stock.
($1,200) used to pay salaries.
Cash inflows:
$1,500 received from a sale
So we have a negative 41,200 representing cash outflows, and only $1,500 in cash inflows (we are not told if the $200 billed were already received so I will leave them out). Making a simple arithmetic operation, we obtain the answer:
Cash balance = -$41,200 + $1,500
= -$39,700
