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Neko [114]
3 years ago
10

Research and development costs should be: A. Expensed in the period incurred. B. Expensed in the period they are determined to b

e unsuccessful. C. Deferred pending determination of success. D. Expensed if unsuccessful, capitalized if successful.
Business
1 answer:
Vladimir79 [104]3 years ago
6 0

Answer:

The correct answer is letter "A": Expensed in the period incurred.

Explanation:

Research and Development (R&D) costs are spent on the development of new products that could or could not end up being commercially offered. These kinds of costs are usually expensed at the same time they are incurred. According to the U.S. Statement of Financial Accounting Standards, the R&D costs cannot be capitalized.

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You expect to receive a payment of $600 one year from now. Answer the following questions and show your calculations:
m_a_m_a [10]

Answer:

Instructions are below.

Explanation:

Giving the following information:

You expect to receive a payment of $600 one year from now.

A) Discount rate= 6%

We need to use the following formula:

PV= FV/(1+i)^n

PV= 600 / (1.06)= $566.04

B) Discount rate= 7%

PV= 600 / (1.07)= $560.75

C) The future value of a certain cash flow declines when the interest rate (discount rate) increases or "n" (time) increases.

4 0
3 years ago
Neal Enterprises common stock is currently priced at $36.80 a share. The company is expected to pay $1.20 per share next month a
yanalaym [24]

Answer:

The cost of equity for Neal Enterprises is 5%

Explanation:

In order to calculate the cost of equity for Neal Enterprises we would have to make the following calculation:

cost of equity=((Do(1+g)/Po)+g

According to givn data we have the following:

Do=$1.20

Po=$36.80

g=2%

cost of equity=((1.20(1+0.02)/36.80-1.20)+0.02

cost of equity=((1.20(1+0.02)/35.60)+0.02

cost of equity=0.05

The cost of equity for Neal Enterprises is 5%

5 0
3 years ago
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating act
kondor19780726 [428]

Answer:

Indicate how each item should be classified in the statement of cash flows using these four major classifications

Explanation:

Cash flows from operating activities

Profit before taxation

Adjustments for:

Depreciation

Investment income

Interest expense

Profit / (Loss) on the sale of property, plant & equipment

Working capital changes:

(Increase) / Decrease in trade and other receivables

(Increase) / (Decrease) in inventories

Increase / (Decrease) in trade payables

Cash generated from operations

Interest paid

Income taxes paid

Dividends paid

Net cash from operating activities

Cash flows from investing activities

Business acquisitions, net of cash acquired

Purchase of property, plant and equipment

Proceeds from sale of equipment

Acquisition of portfolio investments

Investment income

Net cash used in investing activities

Cash flows from financing activities

Proceeds from issue of share capital

Proceeds from long-term borrowings

Payment of long-term borrowings

Net cash used in financing activities

4 0
3 years ago
Alexandria has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but
Sergio [31]

Answer:

The correct answer is aesthetic.

Explanation:

The aesthetics in the design of products refers to the response or reaction of people with an object, artifact or system, this response is manifested through the senses: vision, touch, hearing, taste and smell. Each one contributes to the perception of the product considering whether it is pleasant, pleasant, or if it evokes attraction in the person.

In this case, Alexandria has noticed a change in the design, which may affect your purchase decision, because you may have preferences towards a specific color.

4 0
3 years ago
Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco
wel

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the  Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

                                                  = $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0
4 years ago
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