Answer:
c. $25,000
Explanation:
Calculation to determine At the end of the year, the company's equity totaled:
First step is to calculate the Net income using this formula
Net income= Revenues- Expense
Let plug in the formula
Net income= 35000-23000
Net income=12000
Second step is to calculate Net income added to capital using this formula
Net income added to capital = Net income-Cash dividend
Let plug in the formula
Net income added to capital=12000-2000
Net income added to capital=10000
Now let determine the Ending company total equity using this formula
Ending company total equity= Opening invested capital + Net income added to capital
Let plug in the formula
Ending company total equity=15000+10000
Ending company total equity=$25000
Therefore At the end of the year, the company's equity totaled:$25,000
A. the ATM is owned by the bank of the account holder
Answer:
The current value of the bond is $796.04
Explanation:
The current value of a bond is the present value of all the cash inflows expected from the bond in the form of an annuity of interest payments and the term end face value payment discounted by the required rate of return or market interest rates. Thus, the current price of this bond will be,
Interest payment from the bond per year = 1000 * 0.07 = $70
The present value of ordinary annuity formula is attached in the answer.
Price = 70 * [ (1 - (1+0.14)^-4) / 0.14 ] + 1000 / (1.14)^4
Price of the bond = $796.04
Answer:
The correct answer is B. $110,000.
Explanation:
Equity balance mean what a business owes to its owner. The amount invested by owner and net profit earned is part of it is part of equity. Dividend in case of company equals to drawing. It means that equity is net of any dividend payment made by the company.The detail calculation are given below.
Stockholders' equity opening balance $ 40,000
Year net income $ 90,000
Dividend paid ($ 20,000)
Stockholders' equity closing balance $ 110,000