From an accounting standpoint, stockholders' investment and revenues increase the assets of the company without adding to the liabilities. Therefore according to the equation (A = L + E), equity must increase.
Similarly, issuing dividends and paying expenses pays cash out of the company, which decreases assets without changing liabilities. Therefore equity must decrease.
Another way to think of it is: what contributes to the company's profit and/or value, and what decreases these things? Well, revenues and people investing in the company are good (and therefore good for stockholders), and giving cash out and paying expenses are costs to the company (and therefore decrease value for stockholders).
Answer:
FV= $115,928.81
Explanation:
Giving the following information:
Monthly deposit= $70
Interest rate= 0.12/12= 0.01
n= 24*12= 288
<u>To calculate the future value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {70*[(1.01^288) - 1]} / 0.01
FV= $115,928.81
Answer:
The correct answer is D that is $33,500
Explanation:
The total cost for the oranges = Direct cost + Indirect cost
= (Number of carton × Rate per carton) + (Number of carton × Rate per carton)
= (1,000 × $10) + (1,000 × $16.50)
= $10,000 + $16,500
= $26,500
Total Revenue = Number of carton × Selling price
= 1,000 × $30
= $30,000
Profit from oranges = Revenue - Cost
= $30,000 - $26,500
= $3,500
Profit or loss from from processing into the orange juice is computed:
Total Cost = Number of carton × Price
= 1,000 × $12.50
= $12,500
Revenue = Number of carton × Selling Price
=1,000 × $46
= $46,000
Profit or loss = Revenue - Cost
= $46,000 - $12,500
= $33,500
Therefore, Corporation has a profit of 33,500.
Answer: An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible
1. They lack physical existence.
2. They provide long-term benefits.
3. They are classified as long-term assets.
Explanation:
Examples of intangible assets include goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists. You can divide intangible assets into two categories: intellectual property and goodwill. Intellectual property is something that you create with your mind, such as a design.
Answer:
the information is incomplete but we can assign some numbers just to serve as an example:
suppose that the stock's price is $60, and the earnings per share (EPS) is $1.50, the price earnings ratio will be:
price earnings ratio = stock price / earnings per stock = $60 / $1.50 = 40
