Answer:
A. Retained earnings
Explanation:
At the end of the period, the temporary accounts are closed, their balance is transfer to retained earnings, so the COGS and the sales revenue involved in the intra-entity transfer are contained in the retained earnings account
Answer:
The second project should be chosen. Because the present value of the second project is greater than that of the first project.
Explanation:
The project that should be chosen can be determined by comparing the present value of both projects.
Present value is the cash flows from a project discounted at the discount rate.
Present value can be found using a financial calculator;
For project 1,
Cash flow each year from year one to six is $52,000
Discount rate = 15%
Present value =$196,793.10
For project 2,
Cash flow each year from year one to eight is $48,000
Discount rate = 15%
Present value =$215,391.43
The second project would be chosen because its present value is greater than that of the first project.
I hope my answer helps you
Answer:
The firm's cost of preferred stock is 9.10%
Explanation:
The cost of preferred stock with the flotation of 5% would be the dividend payable by the preferred stock divided by the adjusted current market price(adjusted for flotation cost)
The dividend per year is $8
The adjusted price of the stock=$92.50*(1-f)
where f is the flotation cost in percentage terms i.e 5%
adjusted price of the stock is =$92.50*(1-5%)=$ 87.88
Cost of preferred stock=$8/$87.88*100 = 9.10%
<span>Rachel is already on her way to work, in this case she will write the note to herself and store it in her pocket. When she returns home she will then proceed to paste the note on her door preventing her from forgetting it tomorrow.</span>
Answer:
Land (Dr.) $1,800,000
Land Improvements $540,000
Building 2 $660,000
Building 1 demolish expense $346,400
Land grading expense $187,400
Building 3 construction cost $2,242,000
Land 2 improvement cost $168,000
Cash (Cr.) $22,143,800
Explanation:
Mitzu Co. has paid lump sum amount for 2 buildings and land. The building 1 has no value so its value is considered as zero and all the amount will be attributed to land and building 2. The company has also incurred costs for the demolish of building 1 which will be charged in the books of accounts as one off expense.
