Answer:
c. assets, retained earnings, and net income all overstated by $37,729.
Explanation:
since the ending inventory was overstated by $222,138 - $184,409 = $37,729, it means that cost of goods sold was understated by that same amount. Since COGS were less, that resulted in higher operating income and net income.
Merchandise inventory will be overstated by $37,729 (current asset), while retained earnings will also be overstated by $37,729 since net income increases retained earnings.
Answer:
The value of Ted stock is $2.43
Explanation:
Free cash flow From Year 1 to 5 = $200000
Cash Flow Year 6 = 200000*1.05
= $210000
This cash flow is expected to grow forever, so the terminal value can be caluclated at Year 5 of the above perptuity by Gordon Growth model
Terminal Cash FLow Value at Year 5 = 210000/(15% - 5%)
= $2100000
Present Value of above stream
= 200000*PVIFA(5 yr, 15%) + 2100000*PVIF(5 yr, 15%)
= $200000*3.352 + $2100000*0.497
= $1714100
Value of equity = Present Value of Firm - Value of debt
= $1714100 - $500000
= $1214100
Number of shares = 500000
Value per share = $1214100/500000
= $2.43
Therefore, The value of Ted stock is $2.43
a list of potential customers for your new product would be created using accounting
Answer:
Explanation:
No matter what the future holds, an economics major helps people succeed. Understanding how decisions are made, how markets work, how rules affect outcomes, and how economic forces drive social systems will equip people to make better decisions and solve more problems. This translates to success in work and in life.
