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3 years ago

Pilot Company pays for two years of rent in advance. Recording this transaction would include a debit to:______.

Business

1 answer:

Zarrin [17]3 years ago

6 0

Answer:

prepaid rent

Explanation:

From the question we were informed about how a Pilot Company pays for two years of rent in advance.

Incase of Recording this transaction, it would include a debit to prepaid rent

debit to prepaid rent is one of the journal entry for prepaid rent, and a prepaid rent is usually pen down as asset and it gives the rent expenses in future time , since the Pilot Company pays for two years of rent in advance,debit to prepaid rent must be included when recording the transaction.

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The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $23,500 Assets $12

finlep [7]

Answer:

$20,370.5

Explanation:

Net Profit Margin = Net Profit / Sales= 5,168 / 23500 = 0.219915 = 21.99%

Dividend Payout Ratio = Dividends / Net profit = $1,560/$5,168 = 0.3018576 = 30.19%

Increase in Assets = Total Assets / Current Sales * Change in Sales

Increase in Assets = 121,000 /23,500 * (28,300-23,500)

Increase in Assets = 5.1489362 * 4800

Increase in Assets = $24714.89

Increase in Current Liabilities = Current Liabilities / Current Sales * Change in Sales = 0

Earnings Retained = Revised sales * Net profit margin * (1- dividend payout ratio)

Earnings Retained = $28,300 * 21.99% * (1 - 30.19%)

Earnings Retained = $28,300 * 0.2199 * 0.6981

Earnings Retained = $4344.39497

Earnings Retained = $4344.39

External Financing Needed = Increase in Assets - Increase in Current Liabilities - Earnings Retained

External Financing Needed = $24714.89 - $0 - $4344.39

External Financing Needed = $20,370.5

7 0

2 years ago

Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. Both Trish and Josh will recei

mamaluj [8]

Answer:

The last option is the answer -$141.80

Explanation:

we will use the present value formula for Trish she gets paid every first day of the month therefore she will receive an immediate payment of cash flow which will be added to the present value of future periodic value. Therefore we will find the difference between present values for Trish and Josh which have the same amounts which they'll receive per month.

Given: Trish and josh both receive $450 per month therefore that will be C the monthly future payment that will be received.

They will receive these amounts in a course period of Four years so that will be n = 4 x12=48 because we know that they will receive these payments every month or on a monthly basis for four years. which n represent periodic payments.

i which is the discount rate of 9.5%/12 as we know they will recieve these amounts monthly.

Therefore using the following formulas for present value annuity:

Pv = C[(1-(1+i)^-n)/i] and Pv= C[(1-(1+i)^-n)/i](1+i) then get the difference between these two present values for Trish and Josh.

therefore we will substitute the above values on the above mentioned formula to get the difference:

Pv= 450[(1-(1+9.5%/12)^-48)/(9.5%/12)] - 450[(1-(1+9.5%/12)^-48)/(9.5%/12)](1+9.5%/12) then we compute and get

Pv= $17911.77614 - $18053.5777

Pv = -$141.80 is the difference between the two sets of present values as one has an immediate payment and one doesn't have it.

3 0

3 years ago

Compensation may be offered at the individual, group, and organizational level, depending on what type of performance is to be r

Kamila [148]

Answer:

true

Explanation:

Compensation can be direct or indirect

Some of the components of compensation includes :

Base pay
commissions
stock options
Bonuses
health insurance

Direct compensation are usually offered to individuals

Base pay is usually offered to the individual based on certain parameters .

Same with commissions

But there are some compensations that are offered to groups. For example if members of a department achieve a certain benchmark, they can be rewarded with stock options

Also, indirect compensations such as health insurance and pension are usually compensation offered at the organisational level or group level

8 0

2 years ago

Which of the following is not part of the role of a forester? a. develop sustainable practices b. prevent removal of timber c. d

Reptile [31]

Answer:

"b" is not part of the role of a forester.

Explanation:

8 0

3 years ago

Read 2 more answers

To achieve gains from trade, each nation should specialize in the production of a good or service if:

irinina [24]

Answer:

Explanation:

A country gains from trade if it specialises in the production of the good for which it has a comparative advantage

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. this means that the country can produce the good by forgoing fewer alternative products

For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.

for country A,

opportunity cost of producing beans = 5/10 = 0.5

opportunity cost of producing rice = 10/5 = 2

for country B,

opportunity cost of producing rice = 5/10 = 0.5

opportunity cost of producing beans = 10/5 = 2

Country A has a comparative advantage in the production of beans and country B has a comparative advantage in the production of rice

3 0

2 years ago