The answer is B if I'm right!!!
Answer: c) $7,535
Explanation:
The Collection Float refers to the time that it takes for a deposited check to become available to the account owner after the check has been deposited.
The Average amount is calculated thus;
= No. of payments * Clearing days * average value of payment
= 138 * 1.3 * 42
= $7,535
Answer:
8.37%
Explanation:
WACC = [E / (D + E)](Re) + [D / (D + E)](Rd)(1 - T)
E = market value of equity
D = market value of debt
Re = cost of equity
Rd = cost of debt
T = taxes
- E = 3,000,000 common stocks x $50 = $150,000,000
- DP = 1,000,000 preferred stock x $33 = $33,000,000
- DB = 80,000 bonds x $1,080 = $86,400,000
- Re = (dividend / stock price) + growth rate = ($2.4 / $50) + 6% = 0.048 + 6% = 0.108 or 10.8%
- Rdp = $2.70 / $33 = 8.18%
- Rdb = $85 / $1,080 = 7.87%
- T = 33%
WACC = [E / (D + E)](Re) + [DP / (D + E)](Rdp)(1 - T) + [DB / (D + E)](Rdb)(1 - T)
since the numbers are too large, I will divide the calculation into three parts:
- [E / (D + E)](Re) = [$150,000,000 / ($119,400,000 + $150,000,000)](10.8%) = ($150,000,000 / $269,400,000) x 10.8% = 0.5568 x 10.8% = 0.0601 or 6.01%
- [DP / (D + E)](Rdp)(1 - T) = ($33,000,000 / $269,400,000) x 8.18% x (1 - 33%) = 0.1225 x 8.18% x 67% = 0.0067 or 0.67%
- [DB / (D + E)](Rdb)(1 - T) = ($86,400,000 / $269,400,000) x 7.87% x 67% = 0.0169 or 1.69%
WACC = 6.01% + 0.67% + 1.69% = 8.37%
Answer:
The answer is
Dr: Notes Receivable $4,800
Dr: Interest Receivable $120
Cr: Sales $4,920
Explanation:
The yearly interest rate is 10%
So the interest rate for 90 days(assume 360 days make a year?
90/360 x 10%
2.5% is the interest rate for 90 days.
The interest payment for 90 days will be;
2.5% x $4,800
= $120
The entry will now be:
Dr: Notes Receivable $4,800
Dr: Interest Receivable $120
Cr: Sales $4,920
Answer:
The correct answer is $9187.5.
Explanation:
According to the scenario, the given data are as follows:
Asset cost = $140,000
Residual value = $42,000
Life period = 8 years
So, Annual depreciation can be calculated by using following method:
Annual depreciation = ( Asset cost - Residual value) ÷ Life period
= ($140,000 - $42,000) ÷ 8
= $12,250
As depreciation is to be recorded till Dec.31
So, total time period = Apr - Dec = 9 months
So, Depreciation expense till Dec.31 = $12,250 × (9 ÷ 12)
= $9,187.5
Hence, Depreciation expense till Dec.31 is $9,187.5.