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FinnZ [79.3K]
3 years ago
11

Larry Bar opened a frame shop and completed these transactions: Larry started the shop by investing $41,100 cash and equipment v

alued at $19,100 in exchange for common stock. Purchased $180 of office supplies on credit. Paid $2,300 cash for the receptionist's salary. Sold a custom frame service and collected $5,600 cash on the sale. Completed framing services and billed the client $310. What was the balance of the cash account after these transactions were posted?
Business
1 answer:
Andrew [12]3 years ago
4 0

Answer:

$44,400

Explanation:

The computation of the balance of the cash account after posting of these transactions are shown below:

= Invested cash amount - cash paid for receptionist's salary + cash collection from sale of frame service

= $41,100 - $2,300 + $5,600

= $44,400

The other items do not involved any cash transactions. Therefore they are not relevant and thus they not considered in the computation part

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3 0
3 years ago
Eric enjoys making pizza. When he makes pizza for his friends, sometimes Eric cares about how the pieces are distributed, and so
sammy [17]

Answer:

equity:

-He cuts the pie into eight equal slices.

-He cuts the pie into many slices so that everyone gets a piece.

Efficiency:

-He lets one person eat the whole pie.

-He makes sure that the whole pie is eaten.

Explanation:

Equity deals with distribution i.e to ensure things are equally distributed

While

Efficiency is trying to make sure things are completely used up i.e act of preventing waste

3 0
3 years ago
Leisure Enterprise’s total cost of producing speedboats is given by TC = 10 Q 3 – 4 Q 2 + 25 Q + 500. On the basis of this infor
Anastasy [175]

Answer:

The marginal cost of producing the 25th speedboat is 18,575.

Explanation:

Note that the given Leisure Enterprise’s total cost (TC) of producing speedboats is correctly stated as follows:

TC = 10Q^3 - 4Q^2 + 25^Q + 500 …….………….. (1)

Where Q represents the quantity of speedboats produced.

To obtain the marginal cost (MC) of producing speedboats, equation (1) is differentiated with respect to Q as follows:

MC = dTC/dQ = 30Q^2 - 8Q + 25 ………………… (2)

Finding the marginal cost (MC) of producing the 25th speedboat implies that Q = 25.

Substituting Q = 25 into equation (2), we have:

MC = (30 * 25^2) - (8 * 25) + 25 = 18,575

Therefore, the marginal cost of producing the 25th speedboat is 18,575.

4 0
3 years ago
A share of stock is now selling for $115. It will pay a dividend of $9 per share at the end of the year. Its beta is 1. What do
natali 33 [55]

Answer:

The expected price of the stock is $122.03

Explanation:

To calculate the expected price of the stock at the end of the year or at Year 1, we first need to determine the required rate of return on the stock. We will use the CAPM equation to calculate the required rate of return.

The required rate of return is calculated as,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on market

r = 0.05 + 1 * (0.14 - 0.05)

r = 0.14

We already have the price of the stock today, the D1 and the required rate of return. Using the constant dividend growth model of DDM, we calculate the growth rate in dividends to be,

P0 = D1 / (r - g)

115 = 9 / (0.14 - g)

115 * (0.14 - g)  =  9

16.1 - 115g  =  9

16.1 - 9 = 115g

7.1 / 115 = g

g = 0.0617 or 6.17%

Using the same formula and replacing D1 with D2, we can calculate the price of the stock at the end of the year or at start of Year 1.

P1 = 9 * (1+0.0617)  /  (0.14 - 0.0617)

P1 = $122.03

4 0
3 years ago
The following transactions occurred during July: Received $1,050 cash for services provided to a customer during July. Received
Anastasy [175]

Answer:

$1,575

Explanation:

We will clasify the item "revenue" or "not":

  1. Received $1,050 cash for services provided to a customer during July -> yes, this is revenue
  2. Received $5,000 cash investment from Bob Johnson :  not revenue
  3. the owner of the business Received $900 from a customer in partial payment of his account receivable which arose from sales in June: not revenue for July, but June which was booked in June revenue already
  4. Provided services to a customer on credit, $525: yes, this is July revenue though it's still on account receivable
  5. Borrowed $7,500 from the bank by signing a promissory note: not revenue
  6. Received $1,400 cash from a customer for services to be rendered next year: not July revenue, it's customer advace and might be next year revenue once services are completed

So the amount of revenue for July = Received $1,050 cash for services provided to a customer during July + Provided services to a customer on credit, $525

= $1,050 +$525

=  $1,575

4 0
3 years ago
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