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3 years ago

On December 31, Patterson Company had the following list of account balances.

Business

1 answer:

ElenaW [278]3 years ago

5 0

Answer:

Patterson Company

Balance sheet as at December 31

Fixed Assets:

Equipment $50,800

Less: Accumulated Depreciation, Equipment $10,700

Buildings $119,000

Less: Accumulated Depreciation, Buildings $63,900

Total Fixed Assets $95,200

Current Assets:

Accounts Receivable $44,000

Prepaid Rent $14,700

Cash $39,900

Supplies $10,800

Total current Assets $109,400

Current Liabilities:

Accounts Payable $42,300

Salaries Payable $8,900

Total current liabilities $51,200

Total Net Assets = $153,400

Shareholders Equity:

Capital Stock $57,000

Retained earnings $96,400

Shareholders equity $153,400

Income statement.

Service Revenue 121,600

Supplies Expense 9,000

Gross Profit 112,600

Less expenses:

Depreciation Expense, Equipment 4,600

Depreciation Expense, Buildings 8,300

Rent Expense 11,000

Salaries Expense 6,100

Net income $82,600

Dividends $17,300

Transfer to retain earnings $65,300

Beginning Retained Earnings 31,100

Closing retained earnings $96,400

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when machines are programmed to do multiple tasks in order to produce a variety of products, a firm is said to be employing?

leonid [27]

Answer:

- flexible

- manufacturing

Explanation:

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2 years ago

Computing cash flows from financing LO P3 Additional short-term borrowings $ 20,000 Purchase of short-term investments 5,000 Cas

White raven [17]

Answer:

Cash flows from Financing Activities $4,000

Explanation:

Computation of cash flows from financing activities

Additional short-term borrowings $20,000

Less Cash dividend paid ($16,000)

Cash flows from Financing Activities $4,000

Therefore the Cash flows from Financing Activities will be $4,000.

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3 years ago

g The international Fisher effect: Group of answer choices is an example of absolute PPP focuses on changes over time in the rel

blsea [12.9K]

The international Fisher effect is the difference in nominal interest rates across countries reflecting the difference in expected rates of inflation in those countries.

<h3>What does the Fisher effect show?</h3>

It shows that the nominal rate of interest in a nation usually follows the inflation rate because an inflation-adjusted rate needs to be formed.

This then leads to a change in exchange rates between countries because the difference in nominal rates shows the difference in inflation which is what devalues or appreciates a currency.

Find out more on the fisher effect at brainly.com/question/16036767.

#SPJ1

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2 years ago

Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return o

baherus [9]

Answer:

NPV: $180,285.49

IRR: 21.336%

simple rate of return: 72.13%

Explanation:

6,100,000 investment

contribution margin 3,000,000

fixed expense: <u> 900,000 </u>

EBITA 2,100,000

We will calculate the NPV without the depreciation, as the depreciation is the distribution of the investment cost over the project life.

If we include the depreciation we will be counting the investment amount twice. Entirely at Time 0 and then subtracting on each cash inflow.

We will calculate the NPV at 20% as is the company's discount rate. Even if the current division returns are in 24% as the company accepts project which yields 20%.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 2,100,000

time 5 years

rate 20% = 20/100 = 0.2

$2100000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\$

PV $6,280,285.49

NPV = PV of cash inflow - investment

6,280,285.49 - 6,100,000 = 180,285.49

The internal rate of return is the rate at which the NPV of a priject is zero.

We calculate this using excel formula IRR

or a financial calculator

it could also be done with trial and error using the PV tables.

<u>I will explain you in Excel</u>

FIrst, you write the inflow and outflow per year:

-6,100,000

2,100,000

then we write on another cell:

=IRR(

then, select the cells

and press enter

21.336%

<u>the simple rate of return:</u>

(total return - investment) / investment

(2,100,000 x 5 - 6,100,000) / 6,100,000 =

4,400,000 / 6,100,000 = 0.721311475 = 72.13%

7 0

3 years ago

A conversion strategy whereby an organization uses the new system with select users/parts of the organization until issues are r

hoa [83]

Answer:

A) Pilot strategy

Explanation:

Under a pilot strategy, before a new system is fully implemented, it is first subjected to testing under a given situation by using it in selective parts of the organization , to assess it's compatibility with the situation or if the system requires necessary changes.

This could also be a kind of experimentation to evaluate the feasibility of a system before deciding upon it's final implementation.

If the system under consideration matches the desired results, the organization proceeds with it's full implementation in the entire organization.

If not, necessary changes need to be incorporated in the system.

5 0

3 years ago