Who might benefit from a Traditional Economy?

At the beginning of 2021, Artichoke Academy reported a balance in common stock of $164,000 and a balance in retained earnings of

daser333 [38]

Answer:

Artichoke Academy

Statement of Stockholders’ Equity

For the Year Ended December 31, 2021

Beginning balance Common Stock $164,000

Beginning balance retained earnings $64,000

Subtotal $228,000

Common Stock issued $54,000

Earned net income $44,000

Distributed dividends ($11,400)

Ending balance Common Stock $218,000

Ending balance retained earnings $96.600

Total Stockholders' Equity December 31, 2021: $314,600

Artichoke Academy

Balance Sheet

For the Year Ended December 31, 2021

Assets:

Cash $54,000

Prepaid rent $31,000

Supplies $12,300

Land $270,000

Total assets: $367,300

Liabilities and stockholders' equity:

Accounts payable $13,600

Utilities payable $5,200

Salaries payable $4,900

Notes payable $29,000

Common stock $218,000

Retained earnings $96,600

Total liabilities and stockholders' equity: $367,300

7 0

3 years ago

When a taxpayer does not materially participate in the business activities of a trade or business (including rental activities)

Vlad1618 [11]

Answer:

Passive activity

Explanation:

Passive activities are those kind of activities which involve the business or the trade activities in which the person does not participate materially. And when the person participate materially in the activity, the person is involved in the operations of the company on a continuous, substantial as well as regular basis.

So, in this case, the taxpayer does not participate materially in the activities of the business and the taxpayer is the partial owner, any loss which flows through to the taxpayer will subject to the passive activity rules of loss.

8 0

3 years ago

Which of the following can result in a decrease in the demand for I-Pods in the short run?

kotegsom [21]

Answer: (A) a decrease in the population

Explanation: The population of an area can affect the quantity of goods and services demanded for. As more or fewer consumers enter the market there is a direct effect on the amount of a product that consumers (in general) are willing and able to buy. During population increases, more I-Pods would be sold (increase in demand). When the population of consumers decreases significantly, less sales would be made (decrease in demand) until it increases again.

8 0

3 years ago

Candy and Sarah own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase t

Natalka [10]

Answer:

The correct answer is Cash and Carry.

Explanation:

Cash and carry ("Buy (take) and take (it)") is considered a commercial formula similar to an economato, evolved from traditional wholesale, with the particularity of addressing only and exclusively professionals (independent retailers and hoteliers) and operate on a free service basis. The retailer travels to the location of the wholesaler, chooses the items he needs, pays them and transports them, in front of the conventional procedure of placing the order to the wholesaler, so that he can transport it and serve it in the establishment of the retailer.

The concept of "Cash and Carry, wholesale self-service", is a commercial formula adapted to the needs of certain retailers, restaurants, cafes, hotels and other service providers, such as some institutions (HoReCa Sector, Hotels-Restaurants-Caterers). It is basically designed for professionals in the HoReCa sector, but it also accepts clients that are large consumers, such as institutions or educational centers.

In summary:

It is a wholesaler; that is, it never sells to an end consumer. To access a Cash and carry establishment, you must have a card or identification that proves the status of a retailer.

It has a commercial policy based on price and continuous offers.

Know your customers, their consumption and needs well.

4 0

3 years ago

CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) $10,000,000 Preferred stock 2,000,000

Dovator [93]

Answer:

$5,412,000

Explanation:

Given:

Long-term debt (bonds, at par):$10,000,000

Preferred stock :2,000,000

Common stock ($10 par): 10,000,000

Retained earnings: 4,000,000

Total debt and equity :$26,000,000

Coupon rate = 4%(semi annually)

Par value = $1000

YTM = 12%

Required:

Find the current market value of the firm's debt.

Find the bond price:

Bond price $= (C * (\frac{1 - (\frac{1}{(1+i)^n})}{i}) + (\frac{m}{(1+i)^n})$

$= (C * (\frac{1 - (\frac{1}{(1+0.06)^2^0})}{0.06}) + (\frac{1000}{(1+0.06)^2^0})$

$= 541.20$

Bond price = $541.20

Find number of bonds:

Number of bonds $= \frac{10,000,000}{1,000} = 10,000$

Now, to find the current market value of the firm's debt, use:

Current market value of debt = number of bonds × bond price

= 10,000 × 541.20

= $5,412,000

Current market value of the firm's debt = $5,412,000

7 0

3 years ago