Well, you become very very busy when you work, and that develops strategic flexibility. Once you get used to your organization, that’s a sign of strategic flexibility
Answer:
See below.
Explanation:
Journal entries to record the transaction are as follows,
Debit Computer account with $3,432
Debit Accumulated depreciation account with $18,720
Credit Truck account with $20,800
Credit Cash Account with $520
Credit profit on sale of asset with $832
This the journal entry that balances the books by targeting appropriate accounts.
Note that accumulated depreciation account has a credit balance as it is an asset reducing account.
Hope that helps.
Answer:
Cost of Equity =11.56%
Explanation:
The cost of equity can be determined using any of the following methods:
- The Dividend Valuation Model(DVM)
- Capital Asset Pricing Model (CAPM)
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.
According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
Price = D/Kp
D- Dividend payable
Kp- cost of preferred stock
The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
This CAPM is considered superior to DVM because it incorporates risk. Hence, we will use the CAPM
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 2.90%, Rm-Rf- 7.10% β- 1.22
E(r) = 2.90% + 1.22×(7.10)% = 11.562 %
Cost of Equity =11.56%
Answer:
$747,000
Explanation:
Calculation to determine What amount of inventory should Arendelle report on its balance sheet as of December 31
December 31 Inventory $667,000
Add Second shipment f.o.b. shipping point of $80,000
December 31 Inventory $747,000
($667,000+$80,000)
Therefore What amount of inventory should Arendelle report on its balance sheet as of December 31 is $747,000
