Answer:
D
Explanation:
The cash flow statement, as the name implies, report the use of company's real cash use in three area: investing, operating and financing activities as well as cash available at the beginning of the period and the end of the period as the result of three activities mentioned above.
Answer:
Explanation:
The journal entry is shown below:
Machine A/c Dr $4,500
To Cash A/c $4,500
(Being machinery is purchased for cash)
The total amount of machinery purchased cost is shown below:
= Purchase cost of machine + training cost
= $4,000 + $500
= $4,500
Since the machine is purchased for cash so we debited the machine account and credited the cash account as cash
Answer:
r = 0.09672 or 9.672%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
55 = 3 * (1+0.04) / (r - 0.04)
55 * (r - 0.04) = 3.12
55r - 2.2 = 3.12
55r = 3.12 + 2.2
r = 5.32 / 55
r = 0.09672 or 9.672%
We see that for every 8 sandwiches that the customer needs, he will pay for 5. Lets see how many groups of 8 sandwiches the order of 675 sandwiches contains. If we do Euclidean Division we see that there are 84 groups of 8 and that three sandwiches are the remainder. 675/8=84.375; Hence we have 84 groups and 0.375*8=3 sandwiches that remain. Thus, the customer would play for 84*5= 420 sandwiches if he had ordered 84 groups of 8 (namely 672 sandwiches). Since he needs another 3 sandwiches and there is no promotional offer for those, he will have to pay in total for 423 sandwiches. It is important to not divide the total number by 8 and then multiply it by 5; the customer gets the free sandwiches only if he completes an offer of 5 sandwiches, thus we have to group the sandwiches in octads and deal with the remainder separately.
