Answer:
1. $100,000 and 25%
2. $137,200 and 34.3%
3. $150,000 and 27%
Explanation:
1. It does not expand
a. Net income= $100,000 (as given in the question)
b. Return on equity= (net income)/(shareholder’s equity)
Shareholder’s equity= $400,000
Thus return on equity= 100000/400000 = 0.25 or 25%
2. It expands and issue $160,000 in debt
a. Net income= $100000 + 50000 – 12800 (debt interest 8% of $160000)
= $137,200
b. Return on equity= (net income)/(shareholder’s equity)
= 137200/400000
=0.343 or 34.3%
3. It expands and raises equity of $160000
a. Net Income= $100000 + 50000
= $150000
b. Return on equity= (net income)/(shareholder’s equity)
= 150000/(400000 + 160000)
Where ($560,000) 400000 + 160000 is shareholder’s equity
= 0.27 or 27%
Answer:
the supplies expense for the year 2019 is $5,400
Explanation:
The computation of the supplies expense for the year 2019 is as follows:
Supplies Expense = Opening balance of Office supplies + Purchase of supplies during the year - ending balance of Office supplies
= $1,300 + $5,600 - $1,500
= $5,400
Hence, the supplies expense for the year 2019 is $5,400
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
trade can make everyone better off.
Explanation:
The aim of trade is to make all parties involved better off than they were before the trade occured. For example in international trade a country sells items they have reduced cost producing, while they buy items that will be expensive for them to produce.
In this instance the web startup is offering to give the accounting firm a service they have (web hosting) for tax return service.
Everyone is better off at the end of the day because they obtained a service they could not perform alone.
It seems that you have missed the necessary options for us to answer this question but anyway, the answer for this would be TRUE. It is true that in the recent <span>surveys indicate that students are willing to agree to lower salaries if they know their employer is participating in socially responsible activities. Hope this answers your question.</span>
Answer:
The excess amount paid should be recognized as Goodwill.
Explanation:
Goodwill is the excess amount over net assets of the investee company, paid by investor to the shareholders of the investee company.
Goodwill is calculated as value paid to acquirer less fair value of net assets (fair value of assets minus fair value of liabilities).
