<span>Doc's ribhouse beginning equity = $52,000
Net income = $35,000
dividends by the company = $12,000
Ending equity = ?
we can calculate ending equity by using this formula:
</span><span>Beginning Equity + Net Income - Dividends = Ending Equity
</span><span>now by putting the values we get
$52,000 + $35,000 - $12000 = Ending equity
Ending equity = $52,000 + $23,000
= $75,000
so, $75,000 is the ending equity.
</span>
Answer: B. reduces reported net income of the period but does not involve an outflow of cash for that period.
Explanation:
Depreciation is the wear and tear of an asset due to the use of the asset. When an asset is depreciated, such an asset is eventually sold at a scrap value.
The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation reduces reported net income of the period but does not involve an outflow of cash for that period.
Answer:
7.38%
Explanation:
Calculation to determine what would be AJC's new WACC and total value
Using this formula
WACC and total value=(Equity)(Required rate of return on equity)+(Debt)(1-Tax rate)(Required rate of return on debt)
Let plug in the formula
WACC and total value=(0.6)(0.095)+(0.4)(1-0.4)(0.07)
WACC and total value=0.057+0.0168
WACC and total value=0.0738*100
WACC and total value=7.38%
Therefore would be AJC's new WACC and total value is 7.38%
Answer:
Company quotes an interest rate 17 percent on one-year loans.
Explanation:
Borrow value=$34000
interest rate of company in one year=17 percent
Total interest in a year =$34000×
total interest=$5780
Total payment in one year=$34000+$5780
Total payment=$39780
You will pay $39780/12 or $3315.00/month according to company statement.
