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3 years ago

Dr. Peabody contributed $5,000 in cash to the company. Which of the following statements is correct?

Business

1 answer:

Vinvika [58]3 years ago

5 0

Answer:

D. Cash is debited $5,000; capital is credited $5,000.

Explanation:

The action by Mr. Peabody will increase both cash and capital accounts by $5000 each. As per the accounting equation,( Assets = owners equity + liabilities) cash and capital are on the opposites sides. Cash is an asset, while capital is equity.

An increase in an asset is a debit, while an increase in capital is credited. In this case, the cash account will be debited by $5000, while the same amount will credit the capital account.

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Which of the following is true regarding lemon laws?

alexira [117]

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3 years ago

Read 2 more answers

Consider the statements. Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics.

Nastasia [14]

Answer:

microeconomics

macroeconomics

microeconomics

Explanation:

Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.

Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources

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2 years ago

g Dave's Duds reported cost of goods sold of $2,000,000 this year. The inventory account increased by $200,000 during the year t

FrozenT [24]

Answer:

$2,200,000

Explanation:

The movements in the inventory account is as a result of purchases, sales and writeoffs if any. These are the events that bring about a change between the opening and closing balances.

Given;

cost of goods sold = $2,000,000

Increase in inventory = $200,000 (This is same as closing balance minus opening balance)

Ending balance = $400,000

Thus, opening balance = $400,000 - $200,000

= $200,000

Let the cost of merchandise that Dave's purchased during the year be N

$200,000 + N - $2,000,000 = $400,000

N = $400,000 + $2,000,000 - $200,000

N = $2,200,000

The cost of merchandise that Dave's purchased during the year is $2,200,000

6 0

3 years ago

Alpha Industries is considering a project with an initial cost of $8 million. The project will produce cash inflows of $1.49 mil

IrinaVladis [17]

Answer:

NPV = 1,003,046

Explanation:

NPV = Present value of income - investment

investment 8,000,000

1,490,000 income per year during 8 years at rate x

We need to calculate the WACC so we can know the rate

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

equity-ratio = 0.40

$\frac{E}{E+D} =0.40$

debt-equity ratio = 0.6

$\frac{D}{E+D} =0.60$

$K_e= 11.27\\0.1127 \times0.40 = 0.04508$

$K_d = 5.61 \\0.0561\times (1-.35)\times 0.6 = 0.021879$

WACC 6.69590%

Now that we achieve the rate we solve for the present value of the cash flow

$C * \frac{1-(1+r)^{-time} }{rate} = PV\\$

$1.49* \frac{1-(1.06959)^{-8} }{0.06959} = PV\\$

PV 9,003,046

And finally get the answer

NPV 9,003,046 - 8,000,000 = 1,003,046

3 0

3 years ago

Which of the following statements is FALSE?

Vlada [557]

Answer:

Total return equals earnings multiplied by the dividend payout rate.

Explanation:

Total return is calculated as appreciation of price plus dividend paid, divided by the original price of the stock.

The income gained on a stock is the increase in its value along with dividend that is paid out. This is compared to the original price (denominator) to determine how much returns is realised on the stock.

Mathematically

Returns= {(New price- Old price) + Dividend} ÷ Old price

So the statement total return equals earnings multiplied by the dividend payout rate is false

5 0

3 years ago