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brilliants [131]
3 years ago
6

Retscan, Inc. has assets of $625,000, liabilities of $385,000, and equity of $240,000. It buys office equipment on credit for $1

25,000. The effects of this transaction include: Group of answer choices
Business
1 answer:
brilliants [131]3 years ago
5 0

Answer: a. Assets increase by $125,000 and liabilities increase by $125,000

Explanation:

The Office equipment bought are considered PPE which means they are fixed assets. Their acquisition will increase the assets held by the company by the value of the equipment, $125,000.

The equipment was however, bought on credit. This means that the company still owes the suppliers, payment for it which will see their liabilities increase by the same amount of $125,000.

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If you invest $5,000 at the beginning of each month, howmany months will it take for your account to grow to $250,000
mr Goodwill [35]

Answer:

50 Months

Explanation:

If there is no compound interest it would be 50 Months. You would divide 250,000 by 5,000 to get the months.

5 0
3 years ago
Your consulting firm has been hired by Eco Brothers Inc. to help them estimate the cost of common equity. The yield on the firm'
jeyben [28]

Answer:

a. 12.60%

Explanation:

The Eco Brothers Inc. cost of common can be determined through the following mentioned formula:

cost of common=Cost of debt+risk premium over cost of debt

In the given question

Cost of debt=8.75%

Risk premium over cost of debt=3.85%

Cost of common=8.75%+3.85%

                         =12.6%

So based on the above calculations, the answer is a. 12.60%

5 0
3 years ago
The Super Toy Stores inventory records at December 31, revealed the following: Inventory on hand, December 31 $350,000 Merchandi
enyata [817]

Answer:

The correct answer is $543,000

Explanation:

According to the given scenario, the calculation of the ending inventory is as follows:

= Inventory on hand + merchandise purchased F.O.B shipping point + F.O.B destination

= $350,000 + $118,000 + $75,000

= $543,000

The goods held on consignment i.e. not involved is not relevant

Thus, the  calculation of the ending inventory is $543,000

8 0
3 years ago
Lance has a contract with Smith to resurface a driveway at the Smith residence. Lance by mistake stops at the Jones residence an
sattari [20]

Answer: Yes

Explanation:

Ignoring a situation you have an idea of to play out in another way has implications. Under Quasi-k, the court will implicate a contractual obligation on Mr Jones for staying idle and giving permission to Mr Lance to carry out the activity.

5 0
3 years ago
Facts about the chip category obtained from acnielsen are _______.
ivann1987 [24]
<span>The four types of facts from ACNieslen are: Experimental data; Syndicated data; Primary data; Questionnaire data; and survey data. Nielsen studies what and how much consumers watch and purchase.</span>
8 0
3 years ago
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