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2 years ago

17. Describe why Social Security is considered a retirement account? help

1 answer:

5 0

because it provides monetary assistance to people with inadequate or no income and it provides benefits to retired people and those who are unemployed or disabled

I hope this helps

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Last year's asset turnover ratio was 2.0. Sales have increased by 25% and total assets have increased by 10% since that time. Wh

Dmitriy789 [7]

Answer: d. 2.27

Explanation:

Asset Turnover = Total sales / Average Assets

Last years turnover ratio was 2.0 so assume Sales were $20 and Assets were $10 which would give the turnover of 2.0

The new turnover would be;

= (20 * 1.25)/(10 * 1.1)

= 25/11

= 2.27

6 0

2 years ago

What would be the double entry for an issue of indirect production materials? Select one: a. Dr Material control account Cr Fini

sattari [20]

Answer:

b. Dr Production overhead control a/c Cr Material control account.

Explanation:

Indirect material in the production process is defined as those input that cannot be directly traced to the product. They are different from direct materials like raw materials that are used to make the product.

Indirect materials are classified as overhead.

The double entry for issue of indirect materials is:

Debit production overhead

Credit raw materials inventory (material control account)

Note direct production materials and indirect production materials are credited to material material control account on purchase.

4 0

3 years ago

The current (year 0) price of the shares of Company XYZ is $50. There are 1 million shares outstanding. Next year (year 1)’s div

otez555 [7]

Answer:

1. The dividend per share in year 2 would be $2.16.

The dividend per share in year 3 would be $2.3328

2. The market value of the firm is $50 million

3. The value of the firm next year after the payout is $ 54

Explanation:

1. In order to calculate the dividend per share in year 2 and the dividend per share in year 3 we would have to make the following calculation:

dividend per share in year 2=dividend per share in year 1*(1+Growth Rate)

dividend per share in year 1=$2

Growth Rate=Retention Ratio * ROE

Growth Rate=40% * 20%

Growth Rate=8%

Therefore, dividend per share in year 2=$2*(1+8%)

dividend per share in year 2=$2.16

dividend per share in year 3=dividend per share in year 2*(1+Growth Rate)

dividend per share in year 3=$2.16(1´8%)

dividend per share in year 3=$2.3328

2. In order to calculate the current market value of the firm we would have to make the following calculation:

market value of the firm=Currect Share Price * Number of outstanding shares

According to the given data:

Currect Share Price=$50

Number of outstanding shares=1 million shares

market value of the firm=$50*1 million shares

market value of the firm=$50 million

3. In order to calculate the value of the firm next year after the payout we would have to calculate first the rate of return as follows:

value of the firm =dividend per share in year 1/rate of return-growth rate

$50* Rate of Return - 4 = $2

Rate of Return = 6 / 50

Rate of Return =12%

Therefore, value of the firm next year after the payout=dividend per share in year 2/rate of return-growth rate

value of the firm next year after the payout=$2.16/0.12-0.08

value of the firm next year after the payout=$ 54

3 0

2 years ago

g The transactions of Spade Company appear below. Kacy Spade, owner, invested $100,750 cash in the company in exchange for commo

Stolb23 [73]

Answer:

Dr Cash 100,750

Cr Common stock 100,750

Dr Office supplies 1,250

Cr Cash 1,250

Dr Equipment 10,050

Cr Accounts payable 10,050

Dr Cash 15,500

Cr Fees earned 15,500

Dr Accounts payable 10,050

Cr Cash 10,050

Dr Accounts receivable 2,700

Cr Fees earned 2,700

Dr Rent expense 1,225

Cr Cash 1,225

Dr Cash 1,125

Cr Accounts receivable 1,125

Dr Dividends 10,000

Cr Cash 10,000

Cash Accounts receivables

Debit Credit Debit Credit

100,750 1,250 2,700 1,125

15,500 10,050 1,575

1,125 1,225

10,000

94,850

Office Supplies Equipment

Debit Credit Debit Credit

1,250 10,050

1,250 10,050

Accounts payable Common Stock

Debit Credit Debit Credit

10,050 10,050 100,750

0 0 100,750

Fees earned Rent Expense

Debit Credit Debit Credit

15,500 1,225

2,700 1,225

18,200

Dividends

Debit Credit

10,000

10,000

4 0

2 years ago

Which of the following statements regarding the staffing budget is true? a.The staffing budget is based on the desired profit le

Valentin [98]

Answer:

b.The staffing budget is based on a fixed human resources budget

Explanation:

The staffing budget is the budget that outlines a money plan to be spent on the employees and consists of the largest investment to the organization.

It acts as an outline plan for the service companies each staff member corresponds to the salary for the employee in the spreadsheet on a weekly, monthly, and yearly basis.

8 0

2 years ago