Answer: a). Firm's growth rate = 10.5%
b). Next year's earnings = $30,940,000.00
Explanation: Earnings growth rate is the percentage change in earnings given specific variables.
The firm's earnings growth rate g = Return on equity (ROE) × Retained earnings (b) = 0.15(0.70)
g =0.105 or 10.5%
In finding next year's earnings, we multiply the current earnings times one plus the growth rate.
Next year's earnings = Current earnings(1 + g)
Next year's earnings = 28,000,000(1 + 0.105)
Next year's earnings = $30,940,000.00
Capitalism has not evolved into mercantilism throughout the world.
B. false
Answer: b. debited; credited
Explanation:
Deferred revenue has been paid to the company but the company does not recognize it as revenue yet because the goods or services it was paid for have not been delivered yet. It will therefore be classified as a liability until the goods or services are delivered. It will therefore be credited because increases in liabilities are credited.
Accounts Receivable is an asset account and as such any increase in it will be debited.
Answer:
$240
Explanation:
The computation of cash flow from operating activities of Felix company is seen below;
= Net income - Decrease in plant and machinery + decrease in expense - increase in deferred assets + gain on sale of assets
= $300 - $40 + $20 - $5 + $35
= $240
Therefore, cash flow from operating income of Felix company is $240
Power words are the word that are specific to an employer’s needs