Answer:
The answer is 11.2%
Explanation:
Cost of acquisition: $16 per share
Annual dividend: $1
The stock increases by $2 every year for 3 years. Therefore, we have:
First year is $16 per share
Second year is $18 per share
Third year is $20 per share.
The arithmetic average annual capital gain will be
($2/$16 + $2/$18 + $2/$20)/3
(0.125 + 0.111 + 0.1) / 3
0.336/3
0.112
Expressed as a percentage:
= 11.2%
Answer:
Option (c) is correct.
Explanation:
Variable cost as a percent of sales:
= (Variable expenses ÷ Sales) × 100
= ($3,000,000 ÷ $5,000,000) × 100
= 60%
If Sales = X
then Variable cost is 0.6X (i.e. 60% of Sales)
Sales - Variable cost - fixed expenses = net operating income
X - 0.6X - 1,500,000 = 300,000
0.4X = 300000 + 1500000 = 1800000
X = 1800000 ÷ 0.4
= 4,500,000
Answer: $16.60
Explanation:
The following information can be gotten from the question:
Total common equity = $4,050,000 Shares of stock outstanding = 265,000
Net Income = $450,000
Dividends = $100,000
Based on the information given, the book value per share will be calculated as:
(Total common equity + Net income - Dividends) / Outstanding shares
= ($4,050,000 + $450,000 - $100,000) / 265,000
= $4,400,000 / 265,000
= $16.60
Answer: $30,923
Explanation:
From the question, we are told that as part of an initial investment, Jackson contributes accounts receivable that had a balance of $32,290 in the accounts of a sole proprietorship. Out of the amount, $1,367 is deemed completely worthless and for the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $848.
The amount debited to accounts Receivable for the new partnership will be the difference between the account receivable balance and the amount that was deemed worthless. This will be:
= $32,290 - $1,367
= $30,923
Therefore, the amount debited to Accounts Receivable for the new partnership will be $30,923
Answer:
B. Cash in Bank account (debit) Interest on Loan account credit)
