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irina1246 [14]
3 years ago
6

Corporate Fund started the year with a net asset value of $14.50. By year-end, its NAV equaled $14.00. The fund paid year-end di

stributions of income and capital gains of $1.00. What was the (pretax) rate of return to an investor in the fund? (Round your answer to 2 decimal places.)
Business
1 answer:
Serga [27]3 years ago
3 0

Answer:

3.45%  (Approx)

Explanation:

Given:

NAV at ending = $14

NAV at starting = $14.50

Capital gain = $1

Computation of net rate of return :

Rate of Return = [(NAV at ending - NAV at starting + Capital gain) / ( NAV at starting)] × 100

= [($14 - $14.50 + $1) / ($14.5)] × 100

= [$0.50 / $14.5] × 100

= [0.0344827586]  × 100

= 3.44827586%

= 3.45%  (Approx)

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You are compiling Bertram Boat’s balance sheet. According to your calculations, Bertram has current assets of $85,000 and proper
iragen [17]

Answer:

$318,000

Explanation:

The computation of the total assets is shown below:

= Current assets +  property, plant, and equipment - difference in amount

= $85,000 + $235,000 - $2,000

= $318,000

The difference of amount is

= Account receivable - collected amount

= $50,000 - $48,000

= $2,000

Since the current asset is already given so we considered the difference in amount to find out the total asset.

3 0
3 years ago
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2)
Genrish500 [490]

Answer:

1.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $9,000

                        Allowance for doubtful accounts                                 $9,000

Working

= 3% * 300,000

= $9,000

2.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $12,000

                        Allowance for doubtful accounts                              $12,000

Working

= 1% * total debt

= 1% * (900,000 + 300,000)

= $12,000

3.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $12,500

                        Allowance for doubtful accounts                              $12,500

Working

= 6% * Accounts receivable

= 6% * 125,000

= $7,500

As the Allowance account is in debit, it means that bad debt exceeded the allowance so this balance needs to be added to properly cater for bad debts.

= 7,500 + 5,000

= $12,500

8 0
3 years ago
Stimpleton Company engages in the following cash payments:
choli [55]

Answer: Option A

Explanation: Operating activities refers to those activities which are directly related to the core operations of the business. Such transactions are important for running the business and recorded at the top in cash flow statements.

Thus, only payment of rent and workers salary will be considered operating activities and the company will be having total of $1750 of cash outflow.

Hence the correct option is A.

4 0
3 years ago
Which of the following is NOT a common form of indirect compensation?
3241004551 [841]

Answer:

O Discounts

Explanation:

Hope this helps

8 0
3 years ago
You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market pri
murzikaleks [220]

Answer:

The answer is: The expected rate of return from this investment is 26.68%

Explanation:

We are given the following cash flows for this operation:

  • Initial investment = -$24.50
  • Cash flow 1 = $1.25 (dividend year 1)
  • Cash flow 2 = $1.35 (dividend year 2)
  • Cash flow 3 = $1.45 (dividend year 3)
  • Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)

Using an excel spreadsheet and the IRR function:

=IRR(value 1: value 5) =26.68%  

where

  • value 1 = -24.50
  • value 2 = 1.25
  • value 3 = 1.35
  • value 4 = 1.45
  • value 5 = 56.55

7 0
3 years ago
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