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docker41 [41]
3 years ago
7

Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the busines

s cash account. Identify how the accounting equation will be affected.Unabe to copy options
Business
1 answer:
-BARSIC- [3]3 years ago
8 0

Answer:

Assets would be increased by $15,000 while owner's equity will also increase by $15,000.

Explanation:

The accounting equation shows the relationship between the elements of a balance sheet which are assets, liabilities and owner's equity.

it is given as

Assets = Liabilities + Owners equity

When a business owner invests an amount into a business, it means money is available for the business to operate hence cash is recognized as an asset. However, the owners equity also goes up by the amount invested.

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Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 11%, and its common sto
ANTONII [103]

Answer:

16.30%

Explanation:

Calculation for what the percentage of the company's capital structure consists of debt

Using this formula

rs=D1/P0+g

First step is to find the D1 using this formula

D1=(1+Dividend expected grow constant rate) *+Dividend per share

Let plug in the formula

D1=(1+0.07)*$2.00

D1=1.07*$2.00

D1=$2.14

Now let find the percentage of the company's capital structure Using this formula

rs=D1/P0+g

Let plug in the formula

rs=$2.14/$23.00+0.07

rs=0.09304947+0.07

rs=0.1630*100

rs=16.30%

Therefore the percentage of the company's capital structure consists of debt will be 16.30%

5 0
3 years ago
Ryan always skims through his lesson before a test. What is he doing by skimming?
Mars2501 [29]
D. Reading everything very quickly
7 0
3 years ago
Read 2 more answers
The sole proprietor of the Milwaukee Machine Company receives all accounting profits earned by her firm. She has a standing sala
mixer [17]

Answer:

The correct answer is option b.

Explanation:

The sole proprietor of the Milwaukee Machine Company receives all accounting profits earned by her firm.

The accounting profits for the year were $50,000.

She has a standing salary offer of $35,000 a year to work for a large corporation. If she had invested her capital outside her own company, she estimates that would have returned $22,000 this year.

These two are the implicit or opportunity cost of doing business.

The accounting profits considers only explicit cost not implicit cost. To calculate economic profits we need to deduct implicit costs from accounting profits.

Economic profits

= Accounting profits - Implicit costs

= $50,000 - $35,000 - $22,000

= - $7,000

7 0
4 years ago
The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a fir
My name is Ann [436]

Answer:

1) - proprietorships.

2) - corporations.

3) - proprietorships.

4) - corporations.

Explanation:

So far as figures are concerned, the majority of companies are proprietorships. Even so, mostly based on currency sales revenue, almost all of the trade is conducted by corporations. Businesses are mostly founded as proprietorships and only transformed into corporations until their success results in drawbacks that overshadow the benefits.

So, the following are the reason that describes the following answers are true according to the given scenario.

3 0
3 years ago
Centre City enacts an ordinance that bans the distribution of all printed materials on city streets. Diners Café opposes the cit
Mekhanik [1.2K]

Answer: unconstitutional under the First Amendment.

Explanation:

From the information provided, in Diners’ suit against the city, the court would likely hold the ban on printed materials to be unconstitutional under the First Amendment.

Under the First Amendment, any law that limits or ban freedom of expression, religion, peaceful assembly, petitioning of the government is prohibited. Therefore, the action of the city is unconstitutional.

6 0
3 years ago
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