Answer:
17.9%
Explanation:
The computation of the internal rate of return of the project is shown below;
Year 0 0
Year 1 -70,000 ($10,000 - $70,000)
Year 2 -15,000 ($30,000 - $45,000)
Year 3 115,000 ($125,000 - $10,000)
Let us assume r represent the IRR of the incremental project.
so,
-$70,000 ÷ (1+r) - $15,000 ÷ (1+r)^2 + $115,000 ÷ (1+r)^3 = 0
r = 17.9%
Answer:
January 31
Interest expense 3750(Dr.)
Notes payable 1321.33(Dr.)
Cash 5071.33(Cr.)
Explanation:
Purchase price = $610,000
Down payment = $110,000
Borrowing = $500,000
Period = 15 years
Rate = 9%
Installment Payment per month = $5,071.33
With first payment due on January 31, 2020;
Mortgage amount or carrying value = $500,000
Interest = 0.09 × (1/12) × 500,000 = $3,750
Monthly payment = $5,071.33
Decrease in carrying value or mortgage amount = $5071.33 - $3750 = $1321.33
January 31
Interest expense 3750(Dr.)
Notes payable 1321.33(Dr.)
Cash 5071.33(Cr.)
Answer:
Poe's Year 2 Basic Earnings per share = $0.9
Explanation:
Provided Year 2 Net income = $330,000
Cash dividend paid to preference shares = $60,000
Net earnings available for equity = $330,000 - $60,000 = $270,000
Now outstanding common equity = 300,000 shares
Earnings per share = $270,000/300,000 = $0.9 per share
Note: Dividend paid to common stock is also earnings of common stock, that is dividend is part of common stock.
Therefore dividend paid to common stock will not be deducted and preference shares are paid in priority to equity, therefore dividend to preference is deducted to get the value of earnings available for equity.
Final Answer
Poe's Year 2 Basic Earnings per share = $0.9
Answer:
Aug. 1 Cash 37,800
Common Stock 37,800 (Investment of cash for stock)
Dr.Cash 37,800
Cr. Common stock 37,800
10 Cash 17,010
Service Revenue 17,010 (Received cash for services performed)
Dr. Cash 17010
Cr. Service Revenue 17010
12 Equipment 31,500
Cash 5,040
Notes Payable 26,460 (Purchased office equipment for cash and notes payable)
Dr. Office Equipment 31500
Cr. Cash 5040
Cr. Account Payable 26460
25 Account Receivable 10,080
Service Revenue 10,080 (Billed clients for services performed)
Dr. Account Receivable 10080
Cr. Sales 10080
31 Cash 5,544
Accounts Receivable 5,544 (Receipt of cash on account)
Dr. Cash 5544
Cr. Account Receivable 5544
T account are prepared in the attached MS Excel File, Please find that.
Answer:
With incomes falling in the recession, people are buying more chicken. - this statement is about inferior goods
II People are buying more beef now that incomes have increased. - this statement is about normal good
III People are buying more chicken because the price of chicken has fallen. This statment is about neither
IV With higher incomes people are switching from chicken to beef. - this statement is about both normal and inferior goods
Explanation:
A normal good is a good whose demand rises when income increases and falls when income falls. In this question, beef is a normal good.
An inferior good is a good whose demand rises when income fall and falls when income rises. Chicken is an inferior good in this example.