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3 years ago

The following transactions are July activities of Craig's Bowling, Inc

Business

1 answer:

Strike441 [17]3 years ago

4 0

Answer:

Craig's Bowling, Inc

Income Statement for the month of July

Sales ($13,300 + $8,000) $21,300

Less: Cost of goods sold ($3,490)

Gross profit $17,810

Less: Expenses

Insurance ($1,800 / 3) $600

Wages $4,500

Repair expenses $1,800

Electricity bill $2,000

Total expenses ($8,900)

Net profit $8,910

Note:

Note that the purpose of the income statement is to calculate the profit or loss for a specific period, and not the cash flows during that period. Hence, transactions c., d. and e. are not to be recorded in the income statement for the month of July.

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Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in

Anettt [7]

Answer:

$5,472

Explanation:

Calculation for Alison record of purchase :

First step

Invoice price ×Percentage of payment term

Where:

Invoice price =$5,700

Percentage of payment term =96%

(100%-4%)

Second step

$5,700×96%

=$5,472

Therefore Alison should record the purchase at: $5,472

4 0

3 years ago

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $18.00

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Answer:

$120,000 decrease.

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2 years ago

Several types of risk are present in the U.S. economy. For each of the following, identify the type of risk that is present. Exp

Dima020 [189]

Answer and Explanation:

a. This is a fundamental risk case since there is a loss possibility. As the attack is done by the terrorists and the loss is definite in terms

b. It is a property risk as the house is damaged in a fire that resulted into a financial loss

c. It is a personal risk case as the head of the family is totally disabled that directly impact the family which leads to non-fulfillment of the financial liabilities so ultimately its an income loss.

d. It is a case of speculative as the investor purchase 100 shares that resulted in either profit or loss

e. This is a case of fundamental risk as the overflow of the river impacts the property of thousands people

f. This is a case of financial risk as the risk impacted the opposite changes in the price of the commodity, rate of interest, etc

g. It is a speculative case as the worker could either win or loss

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2 years ago

A stock will pay no dividends for the next 5 years. Then it will pay a dividend of $5 growing at 2%. The discount rate is 10%. W

jok3333 [9.3K]

Answer:

$38.81

Explanation:

The value of the stock is the present value of its future divided payments, bearing in mind that the first dividend is payable six years from,hence, the present value of dividend in year 5( a year before its payment) is then computed thus:

PV of dividend at the end of year 5=expected dividend/discount rate-growth rate

expected dividend in year 6=$5

discount rate=10%

growth rate=2%

PV of dividend at the end of year 5=$5/(10%-2%)

PV of dividend at the end of year 5=$62.50

We need to discount the PV backward by 5 years to show the stock value today

the current stock price=$62.50/(1+10%)^5

the current stock price= $38.81

8 0

2 years ago

An investment offers $5,800 per year, with the first payment occurring one year from now. The required return is 7 percent. a. W

algol13

Answer:

$61,445.20

Explanation:

we need to determine the present value of an annuity, and the simplest to determine this is by using annuity factors:

number of payments = 20

interest rate = 7%

annuity payment = $5,800

present value of the annuity = $5,800 x 10.594 (PV factor, 7%, n= 20) = $61,445.20

if we do not have an annuity table at hand (or in the internet), the formula used to calculate the annuity factor is:

annuity factor = [1 - 1/(1 + r)ⁿ] / r

4 0

3 years ago