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Softa [21]
3 years ago
10

Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $643,800 an

d liabilities of $244,230. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31 of the current year. $ b. Stockholders' equity as of December 31 at the end of the next year, assuming that assets increased by $83,730 and liabilities increased by $18,540 during the year.
Business
1 answer:
zaharov [31]3 years ago
8 0

Answer and Explanation:

As we know that

Total assets = Total liabilities +  total stockholder equity

a. Stockholder equity s of December 31 of the current year is

$643,800 = $244,230 + total stockholder equity

So, the total stockholder equity is

= $643,800 - $244,230

= $399,570

b. Now in the case of increased, the total stockholder equity at the end of the year is

($643,800 + $83,730) = ($244,230 + $18,540) + total stockholder equity

$727,530 = $262,770 + total stockholder equity

So, the total stockholder equity is

= $727,530 - $262,770

= $464,760

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7 0
3 years ago
Chrystal Company incurred the following costs for the months of January and February: Type of Cost January February Insurance $
Rudiy27

Answer:

$0.6 per unit

Explanation:

The computation of the variable rate per unit of output is shown below:

But before that first we have to determine the variable cost which is

= Total utilities cost - fixed cost

= $2,600 - $2,000

= $600

And the number of units produced is 1,000 units

So, the  variable rate per unit of output for utilities cost is

= $600 ÷ 1,000 units

= $0.6 per unit

3 0
3 years ago
Select the choice that accurately completes the following sentence: If a credit card advertises 1% cashback on all purchases…
frutty [35]

Answer:

You will receive 1% of your transaction back, in cash, at the store.

Explanation:

I'm not 100% sure but I think this is correct

8 0
3 years ago
Avocado Incorporated just paid a dividend of $3. An analyst expects this dividend to grow at a rate of 12% for the next 3 years.
yuradex [85]

Answer:

The most you should pay for this stock is 126.89

Explanation:

The dividend in years 1 – 3 will grow at 12% and then at 5% forever.  

We had to get the PV for the dividends in years 1-3 (year 3 also includes the estimated future value of the stock).

We used our calculators to find the PV of each year at the 8% discount rate.  Finally we will add them all together to get the final answer.

We find the future dividends using g =12%

Dividend in year 0 --->

Dividend in year 1 ---> 3.36

Dividend in year 2 ---> 3.76

Dividend in year 3 ---> 4.21

Dividend in year 4 ---> 4.43

Now we will calculate the present value of the future dividends using r = 8%

Stock Value assuming constant growth rate  = 147.52 --(a)

PV in year 1 ---> 3.11

PV in year 2 ---> 3.23

PV in year 3 ---> 120.45  --(discounting (a))

= 120.45 + 3.23 + 3.11

= 126.89

4 0
3 years ago
Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely
MaRussiya [10]

Answer: Wholesaler

Explanation:

Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely a wholesaler.

A wholesaler involves someone who buys goods from the manufacturer or producer in bulk, that is large quantities and then sell to the retailers after which the retailer then sells to the consumers

Here, Television Haven is a whilesaler while the department store is a retailer.

5 0
3 years ago
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