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sweet [91]
3 years ago
12

A corporation was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. Dur

ing the first year of operations, net income was $25,000. On December 15, the corporation paid a $2,000 cash dividend. No additional activities affected equity in Year 6. At December 31, Year 6, the corporation’s liabilities had increased to $94,000. In the corporation’s December 31, Year 6 balance sheet, total assets should be reported at
A. $598,000
B. $600,000
C. $692,000
D. $617,000
Business
1 answer:
Kazeer [188]3 years ago
6 0

Answer:

A. $598,000

Explanation:

Total assets = Net Capital Invested

Net Capital invested = Equity + Long Term Debt + Net Income - Any dividends distributed = $500,000 + $75,000 + $25,000 - $2,000 = $598,000

Note: The net increase in liabilities from $75,000 to $94,000 that is $19,000 is increase of current liabilities and not of capital invested.

Therefore, that increase in liabilities will not be considered.

Final Answer

A. $598,000

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The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3.3 percent, the
Archy [21]

Answer: 26.15

Explanation: The degree of operating leverage is calculated as the percentage change in operating income in relation to a percentage change in sales.

Thus the degree of operating leverage of Gateway inn is calculated thus:

DOL = Cont Margin/Operating income

DOL = 47/(4.6-3.3)

DOL = 47/1.3

DOL= 26.15

8 0
3 years ago
Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou
fomenos

Answer: $920,000

Explanation:

Given the following :

Beginning balance = $800,000

Brown's earning = $600,000

Casg Dividend = $200,000

Dexter's portion of brown's outstanding shares = 3000/ 10000 = 0.3

Therefore, Dexter's investment account is as follows :

Beginning balance + (earning × 0.3) - (Dividend × 0.3)

$800,000 + ($600,000 × 0.3) - ($200,000 × 0.3)

$800,000 + $180,000 - $60,000

$980000 - $60000 = 920000

4 0
3 years ago
During the fiscal year, a company had revenues of $400,000, cost of goods sold of $280,000, and an income tax rate of 30 percent
tatiyna

Answer:

$84,000

Explanation:

A company's net income can be determined by subtracting the cost of goods sold from the revenues to obtain the income before taxes and then multiply it by one minus the tax rate.

If revenues are $400,000 and cost of goods sold are $280,000 at a tax rate of 30%, net income for the year is:

N=(\$400,00-\$280,000)*(1-0.3)\\N=\$84,000

The company's net income for the year is $84,000.

8 0
4 years ago
To attend a winter concert presented by the community chorus, every person had to donate one unwrapped toy at the concert hall d
Inga [223]

Answer:

correct option is C) price

Explanation:

solution

we know that marketing mix is refer to the all factor and strategy adopted by the company in an order to promoted its product

and price element of marketing mix is create  value for the product

so when contribution that reduce price of any product or a good

so it is closely related to price element of the marketing mix

so we can say that donations of un wrapped toy and  decrease price the concert present by the community chorus

so correct option is C) price

7 0
3 years ago
What is a secured loan
Anon25 [30]
" A secured loan is, a loan in which borrower pledges some asset as calateral for the loan, which them becomes a secured dept owned to the creditor who gives the loan."
8 0
3 years ago
Read 2 more answers
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