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taurus [48]
3 years ago
7

On June 1 st a hotelâ s balance sheet shows assets of $6,400,000 and ownersâ equity of $2,000,000 what is the amount of the hote

lâ s liabilities? $2,200,000 $4,400,000 $3,400,000 $8,400,000
Business
1 answer:
andreev551 [17]3 years ago
7 0

Answer:

$4,400,000

Explanation:

A balance sheet is a statement showing the financial position of a business as at a particular date. At all time the Asset of a business must be equal  Liabilities + Owners' Equity. i.e Assets = Liabilities + Owners' Equity.

In the case of Hotela's balance sheet

Asset= $ 6,400,000

Equity = $2,000,000

Liabilities = ?

Going by the accounting equation Assets = Liabilities + Owners' Equity.  

To calculate liabilities the formula below will be used

Liabilities = Asset - Owners' equity

Therefore Liabilities = $6, 400,000 - $2,000,000  = 4,400,000

Hence the answer is 4,400,000

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On September 1, 2020, Windsor Company sold at 104 (plus accrued interest) 3,840 of its 8%, 10-year, $1,000 face value, nonconver
Rzqust [24]

Answer:

total sales value = 3,840 x $1,000 = $3,840,000 x 1.04 = $3,993,600

since each bond carried 2 detachable stock warrants, we must include in the bond issuance the value of the stock warrants = 3,840 bonds x 2 warrants x $2 per warrant = $15,360

the premium on bonds payable = total cash received - bonds payable - stock warrants = $3,993,600 - $3,840,000 - $15,360 = $138,240

the journal entry for recording the bond issuance:

September 1, 2020, 3,840 8% bonds issued

Dr Cash 3,993,600

    Cr Bonds payable 3,840,000

    Cr Premium on bonds payable 138,240

    Cr Additional paid in capital - warrants 15,360

5 0
3 years ago
swenson Saws produces bows, frame, dovetail, and tenon saws used by craft furniture makers. During an 8-hour shift, a saw is pro
RUDIKE [14]

Answer:

Given: Total shift time = 8 hours = 8 * 60 = 480 minutes

time required for production of one saw = 6 minutes

Demand for Bow saw = Demand for frame saw = Demand for dovetail saw = 1/2 * Demand of Tenon saw

a) Mixed model schedule:

Mixed model schedule

Product no. per batch

Bow Saw 1

Frame Saw 1

Dovetail Saw 1

Tenon Saw 2

Total 5

Therefore 2 Tenon Saw, and each bow, frame, and dovetail saws will be produced before the cycle is repeated.

b) 2 Tenon Saw, 1 bow, 1 frame, and 1 dovetail saws will be produced under production sequence for one unit production.

The length of cycle will be 5*6=30 minutes i.e. the cycle will repeat once in 30 minutes for 8 hours means totally it will repeat 16 times during one shift.

c) Number of saws Swenson produce in one shift = Number of Bow saw Swenson produce in one shift + Number of Frame saw Swenson produce in one shift + Number of Dovetail saw Swenson produce in one shift + Number of Tenon saw Swenson produce in one shift

Explanation:

7 0
2 years ago
Read 2 more answers
An investor is considering a $25,000 investment in a start-up company. She estimates that she has probability 0.2 of a $15,000 l
lozanna [386]

Answer:

$21,000

Explanation:

initial investment $25,000

we need to determine the expected value of every possibility:

  • $15,000 loss ⇒ 20% x $10,000 = $2,000
  • $29,000 loss ⇒ 15% x $5,000 = $750
  • $40,000 gain ⇒ 5% x $65,000 = $3,250
  • break even ⇒ 60% x $25,000 = $15,000

total expected value = $21,000

8 0
3 years ago
Under variable costing income statements, product cost would include Direct materials only Direct materials, direct labor and fi
pantera1 [17]

Answer:

Direct materials and direct labor.

Explanation:

A variable cost is the one that vary depending on the level of production or sales. The cost increase or decrease according to the level of volume change.

The variable costing charges only direct costs (material, labour and variable overhead costs) into the cost of a product. It is lower than the cost calculated under absorption costing, that also include fixed manufacturing overhead.

Fixed manufacturing overhead is considered as a periodic cost and charged from the periodic gross profits.

4 0
3 years ago
The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 15 ​billion, respectively.
Stolb23 [73]

Answer:

Ford's weighted average cost of capital is 8.22 %

Explanation:

Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.

Calculation of WACC

WACC = Cost of equity + Cost of preferred​ stock + Cost of debt

Capital Source       Market Values     Weight      Cost      Total Cost

equity                         $ 7 ​billion          29.17%      13.6%       3.97 %

preferred​ stock         $ 2 ​billion            8.33%      12%          1.00 %

debt                           $ 15 ​billion         62.50%     5.2 %       3.25%

Total                          $ 24 billion                                          8.22 %

Cost of equity = Risk free rate + Beta × Risk Premium

                       =  4% + 1.2 × 8%

                       =  13.6%

Cost of preferred​ stock = Dividend/Market Price

                                       = $ 3/ $ 25 × 100

                                       = 12%

Cost of debt = interest × (1- tax rate)

                    = 8% × (1-0.35)

                    = 5.2 %

7 0
3 years ago
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