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Mars2501 [29]
3 years ago
7

Question 8 Presented below are changes in the account balances of Wenn Company during the year, except for retained earnings. In

crease (Decrease) Increase (Decrease) Cash $28,860 Accounts payable $32,580 Accounts receivable (net) (17,010) Bonds payable (19,620) Inventory 52,010 Common stock 63,760 Plant assets (net) 46,730 Paid-in capital 15,390 The only entries in Retained Earnings were for net income and a dividend declaration of $17,520. (a) Compute the net income for the current year.
Business
1 answer:
skelet666 [1.2K]3 years ago
7 0

Solution:

Change in assets= 28,860-17,010+52,010+46,730= 110,590(increase)

Change in liabilities= 32,580-19,620=12,960 (increase)

Change in stockholders equity= 110,590-12,960 = 97,630

Net increase= 97,630

Change in common stock= 63,760

Additional paid in capital= 15,390

Net increase accounted for = 63,760-15,390= 48,370

Increase in retained earnings (net income)= 32560

Compute the net income for the current year.

Net income $32560

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A low inflation rate is preferred because...
mamaluj [8]

Answer:

the correct answer is  low inflation indicates steady growth

Explanation:

inflation can be explained as the increase in the general price level of a country over a specific period of time. this is an indicator of the rise in the price of the goods and services of a country and indirectly can show the standard of living, economic growth and the purchasing power of an economy.

Generally, the inflation is said to be in an healthier range when it is between 1% and 5%, it is regarded as good when it is below 10% and said to be unhealthy when it is over 10%.

when the inflation is low, the price levels rise systematically and gradually. this allows business and investors to predict the economy more accurately and preserves the purchasing power of the currency and money, which is good for both investments, national and international trade.

moreover, when the inflation is lower, the cost of capital financing remains low as well. and the real interest rates are higher too.

5 0
4 years ago
Please help me w this one multiple choice question (Principles of Business (P.O.B.)​
Leno4ka [110]

The correct answer to this question is choice A.

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3 0
4 years ago
Different organizations face different constraints and rules. _____ have more ways to accumulate capital (such as issuing stocks
Pani-rosa [81]

Answer:

Different organizations face different constraints and rules. Not-for-profit organizations have more ways to accumulate capital (such as issuing stocks and bonds) and benefit from economies of scale. But small firms do not have to pay certain kinds of taxes.

Explanation:

Non profit organization such as NGOs have more ways to accumulate capital through international support as a result of the nature of task they are carrying out. International organization that supports NGOs are United Nation, UNICEF, WHO, IMF and world bank among others.

while small firms does not pay certain kind of taxes as a result of the nature of type of business they are into, this limits or reduces their tax payments

6 0
3 years ago
Laura mentions that employees will come back from tea break on time because they know it will let down their fellow work mates i
cupoosta [38]

Answer:

Cooperation and trust

Explanation:

There are clear distinctions between groups and teams. A group is a set of people brought together by common interests and inevitable circumstances, while a team is a group of people working together to reach a common goal.

The responsibility in a team is evenly dispersed; although the work is not done individually, the team is acting as an individual. That means that <em>trust </em>has to be present among team members; we have to know we won't be let down by a team member, like we don't let down ourselves.

<em>Trust</em> is one of the most essential inputs for effective <em>cooperation</em>.  

A team possessing such characteristics is highly <em>cohesive</em>.

6 0
3 years ago
On December 31, 2017, Beta Company had 320,000 shares of common stock issued and outstanding. Beta issued a 4% stock dividend on
rosijanka [135]

Answer:

The answer is 324,050 shares

Explanation:

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Beta issued a stock dividend of 4percent. Meaning the outstanding shares will increase by 4percent.

1.04 x 320,000 shares

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Treasury stock issued on September 30, 2018. This means we have 3months(October 1 - December 31st, 2018).

So we have 3/12 x 35,000 shares

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Therefore, the appropriate number of shares to be used in the basic earnings per share computation for 2018:

=332,000 shares - 8,750 shares

= 324,050 shares

6 0
3 years ago
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