Answer:
Wholistic Health Services Co.
Income Statement for the year end February 28, 2019
Service Revenue $270,900
Less: Supplies Expense <u>$3,000 </u>
Gross Income $267,900
Less operating Expenses:
Insurance Expense $4,000
Depreciation Expense $9,000
Miscellaneous Expense $6,000
Utilities Expense $1,760
Rent Expense $4,200
Wages Expense <u>$213,000</u>
<u>$237,960</u>
Net Income <u>$29,940 </u>
Explanation:
Income statement shows the performance of the company in a year. It provides the details of revenue, expenses and profits for the year. All the expenses are deducted from the revenue to determine the net earning of the business.
Answer:
Interest Expense $39,600
Cash Flow from Operating Activities $39,600
Explanation:
Payment of Interest Expense is the cash expense paid during the year which is deducted from the operating profit in the calculation of net income which is used to determine the cash flow from operating activities.
Interest on the Bond = $660,000 x 6% = $39,600
At the time of payment Journal Entry will be as follow
Dr. Interest Expense $39,600
Cr. Cash $39,600
As the cash is paid against the operating activities.
Answer:
Explanation:
The journal entries are shown below:
On July 15:
Retained earning A/c Dr $169,000
To Dividend payable $169,000
(Being cash dividend declared is recorded)
On Aug 15:
No journal entry is required on the date of declared
On Aug 31:
Dividend payable A/c $169,000
To Cash A/c $169,000
(Being dividend is paid is recorded)
Projects are a frequent part of business. They differ from routine activities in that they usually have a narrow focus, specific deadline and may occur only once or infrequently. Some project types recur but differ in their goals. I hope it helps !
Answer:
A)
risk free rate = 8%
market rate = 15%
Xyrong's beta = 1.2
pays 40% of income in dividends
latest EPS = $10
ROE = 18%
k = 8% + (1.2 x 7%) = 16.4%
g = ROE x (1 - 40%) = 10.8%
div1 = [(40% x $10) x (1 + g)] = $4 x 1.108 = $4.432
stock price = $4.432 / (16.4% - 10.8%) = $79.14
B)
div0 = $4
div1 = $4.432
price0 = $103
price1 = $79.14 x (1 + g) = $79.14 x 1.108 = $87.69
holding period return = ($4.43 + $87.69 - $103) / $103] = -0.1056 or -10.56%
