Answer:
Cash $60,000 (debit)
Investment Income $60,000 (credit)
Explanation:
It is Important to note that the Acquirer (Horicon Corp) is a Corporate.
The Acquisition of 25% of the common stock of Sheboygan Corp constitute an Asset for Horicon Corp since Economic Benefits are expected to be received from the Investment.
The Receipt of Dividends from these shares will constitute Investment Income and the entry is as follows :
Cash $60,000 (debit)
Investment Income $60,000 (credit)
Answer:
$17.68 per machine hour.
Explanation:
Plant Overhead rate per machine hour = $8,500,000 + $164,500 / 490,000 machine hours
Plant Overhead rate per machine hour = $8,664,500 / 490,000 machine hours
Plant Overhead rate per machine hour = $17.68265306122449
Plant Overhead rate per machine hour = $17.68 per machine hour.
Answer:
Cost of capital = 12.40% (Approx)
Explanation:
Given:
Cost of equity = 15.4%
Pretax cost of debt = 8.9%
Debt-equity ratio = 0.46
Tax rate = 34%
Computation:
Equity multiplier = 1 + Debt-equity ratio
Equity multiplier = 1 + 0.46
Equity multiplier = 1.46
Weight of equity = 1 / Equity multiplier
Weight of equity = 1 / 1.46
Weight of equity = 0.685
Weight of Debt = 1 - Weight of equity
Weight of Debt = 1 - 0.685
Weight of Debt = 0.315
Cost of capital = [Weight of Debt x Pretax cost of debt] x (1-tax rate) + [Cost of equity x Weight of Debt
]
Cost of capital = [0.315 x 8.9% x (1-0.34)] + [15.4% x 0.6849]
Cost of capital = 12.40% (Approx)
Answer:
D 34.62%
Explanation:
To get the return on commonequity we need to follow a few steps as follows:
Here we have to let the Average total common stockholders' equity = ($550,000 + $490,000) ÷ 2 = $520,000 and (Net income $200,000 - Preferred Dividends $20,000) ÷ Average total common stockholders' equity = 34.62% .Therefore the correct answer is 34.62%.
Answer:
A cash receipts budget of flying consumers.
Explanation:
Operational budget is defines as all the profits and expenses a business realises as a result of planning it's operations.
Usually an operational budget is set before activities begin, and is a target to be achieved.
For an airline cash receipts of flying customers is not a revenue realised as a result of planning operations, so this is the correct answer.
However a fuel budget, material budget for parts, and labour budget for flight crew are operational budgets.
