Answer:
$1,464,000
Explanation:
The computation of the depletion expense is shown below:
Purchase price plus additional cost = $5,640,000
Extracted tons during four year period = 940,000 tons
Current year tons extracted = 244,000 tons
So,
Depletion expense = Purchase price plus additional cost ÷ extracted tons during four year period × current year tons extracted
= $5,640,000 ÷ 940,000 tons × 244,000 tons
= $1,464,000
Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%
Answer:
sharing information across the organization.
Explanation:
ERP software systems allow employees accurate and timely access to real time information about the company's areas that they work with. This can optimize how the company operates and increase cooperation between different areas. Also unnecessary operations and delays are eliminated.
Before, salespeople had to continuously check with inventory department about what products were available and ready to be sold, which caused delays and time is money.
Answer:
1.
Debit Credit
Retained Earnings ($0.75*3,100) $2,325
Dividend payable $2,325
2. "No Journal Entry Required"
3.
Debit Credit
Dividend payable $2,325
Cash $2,325
Explanation:
The following journal entries will be required to be made
1. Recording declaration of dividend
The Divine Apparel shall record the the following journal entry on October 1 in respect of dividend declared by it.
Debit Credit
Retained Earnings ($0.75*3,100) $2,325
Dividend payable $2,325
2.Record the entry on date of record
"No Journal Entry Required"
3.Record the payment of cash dividends
The Divine Apparel shall record the the following journal entry on October 31 in respect of dividend paid by it.
Debit Credit
Dividend payable $2,325
Cash $2,325
Answer:
B) $16,000
Explanation:
Current liabilities are debt that must be paid within a 12 month period.
The total value of the notes payable is $355,000, but only $16,000 is due within 12 months. The $175,000 of short term debt has been refinanced and reclassified as long term debt. The $25,000 of deferred tax liability is also non current.
