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3 years ago

Required information

Business

1 answer:

ArbitrLikvidat [17]3 years ago

5 0

Answer:

book value = $13,200 (purchase price) + $4,200 (paint) + $2,300 (accessories) = $19,700

useful life 5 years, salvage value $5,100

assuming the company uses straight line depreciation:

depreciation per year = ($19,700 - $5,100) / 5 years = $2,920 per year

the journal entries to record the purchase of the vehicle and the improvements are:

July 1, 2022, vehicle is purchased

Dr Suburban SUV 13,200

Cr Cash 13,200

July 1, 2022, vehicle's paint and accessories

Dr Suburban SUV 6,500

Cr Cash 6,500

the journal entry to record depreciation expense ($2,920 x 6 months)

December 31, 2022, depreciation expense

Dr Depreciation expense 1,460

Cr Accumulated depreciation - Suburban SUV 1,460

the journal entry to record insurance expense ($2,100 x 6 months)

December 31, 2022, insurance expense

Dr Insurance expense 1,050

Cr Prepaid insurance 1,050

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American Exploration, Inc., a natural gas producer, is trying to decide whether to revise its target capital structure. Curren

Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00 %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

$WACC = 0.12(0.5) + 0.06(0.5)$

WACC 9.00000%

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

$WACC = 0.12(0.3) + 0.06(0.7)$

WACC 7.80000%

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

$WACC = 0.16(0.3) + 0.06(0.7)$

WACC 9.00000%

3 0

3 years ago

Career Cluster

Troyanec [42]

Answer: A

Explanation

4 0

3 years ago

for having a manuscript typed at a certain typing service are $5 per page for the first time a page is typed and $3 per page eac

Kipish [7]

Answer:

total cost of having the manuscript type is $680

Explanation:

given data

first time = $5 per page

revised = $3 per page

manuscript = 100 pages

revised only once = 40

revised twice = 10

to find out

total cost of having the manuscript typed

solution

we know for 1st time page cost is

page 1st time = 100 - 40 - 10 = 50 page

cost 1st time = 50 × $5 per page = $250 .................1

and

for first revision

first revision page = 40

cost of first revision = 40 × ( first time $5 + first revision $3 )

cost of first revision = 40 × 8 = $320 ......................2

and

for second revision

second revision page = 10

second revision cost = 10 × ( first time $5 + first revision $3 + second revision $3 )

second revision cost = 10 × 11 = $110 ..........................3

add all 3 equation

total = $250 + $320 + $110

so total cost of having the manuscript type is $680

6 0

3 years ago

Karen and Mike currently insure their cars with separate companies, paying $400 and $600 a year. If they insured both cars with

Papessa [141]

Answer:

$1,720

Explanation:

Total annual premium for both Karen and Mike = $400 + $600 = $1,000

If they insured both cars with the same company, they would save 15% on the annual premiums -> the annual saving = 15% * $1,000 = $150

We use formula FV to calculate the future value of annual payment:

= FV(rate, number of payment, - payment) = FV(3%,10,-150) = $1,720

4 0

3 years ago

. Describe an example of a company that manufactures a product.

daser333 [38]

There are a huge range of companies that produce a huge range of products, some examples of these are;
Apple= iPod, iPhone, iPad, iMac, Macbook.
Samsung= Phones, Televisions, Laptops
Ford= Cars, Vans etc.
Rolex= Watches
Ralph Lauren= Men, Women and Children's clothes and accessories, Home and pet accessories.
Hope this helps and is what you were looking for

5 0

3 years ago