Answer:
Solution:
Dollar amount of total return = Capital gain distributions + Change in market value
First, we calculate the capital gain distributions
Income and capital gains distribution = ($0.12 + $0.22) x 130 shares
Income and capital gains distribution = $44.2
Now, we calculate the change in market value
Change in market value = Sales Price - Purchase price
Change in market value = 130 x $24 - 130 x $27
Change in market value = -$390
Therefore,
Dollar amount of total return = $44.2 + (-$390)
Dollar amount of total return = -$345.80
Answer:
b. A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
Explanation:
Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; terms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800).
The following journal entries records this purchase transaction: A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
<u>The reason is that with a perpetual inventory system, transportation costs are added directly to the inventory balance</u>
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Answer:
a. $26.67
b. 2.50%
Explanation:
a. Computation of the current value of the stock is given below:-
Price of stock ÷ Required rate of return - Growth rate
= $1.20 ÷ (0.07 - 0.025)
= $1.20 ÷ 0.045
= $26.67
b. Computation of capital gains yield on this stock is shown below:-
= Required rate - Dividend yield
= 7% - ($1.20 ÷ $26.67)
= 7% - 0.04499
= 2.50%
Answer: 1.50
Explanation:
Baeed on the information given in the question, the enterprise value multiple would be calculated as:
= [(4,250 × 16.65) + 64,800 - 5,200] / (213,000 - 126,200)
= 130,362.5 / 86,800
= 1.50 times
Answer:
The correct answer is letter "D": To personally guarantee loans of the business.
Explanation:
Accounting is the recording of financial transactions of a business or organization. It also includes the process of summarizing, analyzing and reporting these transactions -given a method- in financial statements. The financial statements that accountants create provide critical information for many key people such as managers, stakeholders, and the corresponding agencies of the government.
However, <em>securing a loan for a company will rely on the credit history of the institution which directly does not involve one of the functions of corporate accounting.</em>
