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Mamont248 [21]
3 years ago
12

Required information Skip to question [The following information applies to the questions displayed below.] The December 31, 202

1, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Accounts Debit Credit Cash $ 10,400 Accounts Receivable 134,000 Prepaid Rent 4,400 Supplies 22,000 Equipment 240,000 Accumulated Depreciation $ 119,000 Accounts Payable 10,400 Salaries Payable 9,400 Interest Payable 3,400 Notes Payable (due in two years) 24,000 Common Stock 140,000 Retained Earnings 44,000 Service Revenue 340,000 Salaries Expense 240,000 Rent Expense 12,000 Depreciation Expense 24,000 Interest Expense 3,400 Totals $ 690,200 $ 690,200 Required: 1. Prepare an income statement for the year ended December 31, 2021.
Business
1 answer:
Furkat [3]3 years ago
8 0

Answer and Explanation:

The preparation of the income statement is presented below:

Service Revenue 340,000

Less:

Salaries Expense 240,000

Rent Expense 12,000

Depreciation Expense 24,000

Interest Expense 3,400

Net income $60,600

Hence, we simply deduct the expenses from the service revenue so that we get the net income

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Aluminum maker Alcoa has a beta of about 1.85​, whereas Hormel Foods has a beta of 0.39. If the expected excess return of the ma
Nady [450]

Answer and Explanation:

The computation is shown below:

As we know that

According to the Capital Asset Pricing Model (CAPM) formula

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

And, the market rate of return - Risk-free rate of return is also known as the market risk premium

As we can see that the Alcoa contains high beta as compared to Hormel Foods so the Alcoa has a higher equity cost of capital

And, the higher rate is

= (Excess return of the market) × (Alcoa beta - Hormel foods beta)

= (3%) × (1.85 - 0.39)

= 3% × 1.46

= 4.38%

8 0
3 years ago
A proposed project has an initial cost of $38,000 and cash inflows of $12,300, $24,200, and $16,100 for years 1 through 3, respe
In-s [12.5K]

Answer:

IRR is greater than required return by 17.38 - 16.8 % = 0.58 %

so project will accept

Explanation:

given data

initial cost = $38,000

cash inflows year 1 =  $12,300

cash inflows year 2= $24,200

cash inflows year 3 = $16,100

rate of return = 16.8 %

solution

we consider here IRR is = x so

present value of inflows is equal to present value of outflows   .............1

we can say that it as

initial cost = present value

3800 = \frac{12300}{1*x} +\frac{24200}{(1*x)^2} +\frac{16100}{(1*x)^3}

solve it we get

x = 17.38%

here IRR is greater than required return by 17.38 - 16.8 % = 0.58 %

so project will accept

4 0
3 years ago
Suppose you deposit ​$2,200 cash into your checking account. By how much will the total money supply increase as a result when t
zhannawk [14.2K]

Answer:

The money supply increases by $3300.

Explanation:

Money multiplier = 1/reserve ratio

= 1/0.4

= 2.5

the change in the money supply = deposit *multiplier -deposit

= $2,200*2.5 - $2,200  

= $3300

Therefore, The money supply increases by $3300.

6 0
3 years ago
in a split offering, a) shares are issued from the corporation and sold by existing shareholders. b) all shares are issued to th
melisa1 [442]

In a split offering, we see that a) shares are issued from the corporation and sold by existing shareholders.

<h3>What is a split offering?</h3>

A split offering is a type of stock issuance that involves the issuing of new stock and existing stock that it is in the market already. This is why it is called a split offering - one side of the offering comes from the corporation, and the other comes from the existing shareholders.

With a split offering, the seller will be existing shareholders and not the company. This means that the corporation that issues the shares, will then cooperate with existing shareholders who will then be the ones to sell the shares.

Find out more on stock offerings at brainly.com/question/13049425.

#SPJ1

4 0
1 year ago
Economists know it is best to track inflation because a. It distorts prices b. It distorts statistics about overall economic per
UkoKoshka [18]

Answer:

c. it makes prices rise

Explanation:

Inflation describes a situation where there is a general increase in prices in the country. Inflation is directly linked to economic growth. A high growth rate results in high inflation.

Inflation causes prices to rise, reducing the purchasing power of money. A reduction in purchasing power means a unit of money will buy fewer items than it did previously. The government puts in measures to counter inflation to stabilize prices and prevent erosion of purchasing power.

Low inflation indicates slow economic growth, low employment, and a reduction in prices.

5 0
3 years ago
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