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2 years ago

Difference between assets and liabilities.

Business

1 answer:

Alinara [238K]2 years ago

8 0

Answer:

see below

Explanation:

Assets are the things a person or a company owns. They are items precious to a business or an individual. Assets are things that can be assigned a monetary value. They are in the form of cash, properties, money market securities, machinery, plants and equipment, intellectual property rights, and many others.

Liabilities are money a business or person owes others. They are loans, debts, and obligations that need to be paid. Common liabilities include bank loans, unpaid utilities, and creditors such as suppliers.

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Over the next three years, Distant Groves wl pay annual dividends of $.65, S.70, and $.75 a share, respectively. After that, div

hichkok12 [17]

Answer:

c) $5.68

Explanation:

The worth of this stock today is the present value of the future dividends which is computed by discounting future dividends as well as the terminal value using the required rate of return of 14.5% as the appropriate discount rate as shown thus:

Year 1 dividend=$.65

Year 2 dividend=$0.70

Year 3 dividend=$0.75

terminal value of dividends=Year 3 dividend*(1+g)/Ke-g

g=dividend terminal growth rate=2%

Ke=required rate of return=14.5%

terminal value of dividends=$0.75*(1+2%)/(14.5%-2%)=$ 6.12

Share price=$.65/(1+14.5%)^1+$.70/(1+14.5%)^2+$.75/(1+14.5%)^3+$6.12/(1+14.5%)^3

share price=$5.68

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2 years ago

Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc.

makvit [3.9K]

Answer:

a. want to avoid potential disputes.

Explanation:

The auditors are liable to report all the acts of the company, whether are in confirmation of law or not. This is because it is their duty to put a review on the balance sheet, and provide the users of such balance sheet the trust on the information presented.

Even if the agreement do not provide for complete details making it a valid contract this is sure that they need to act properly so that any moral dispute do not occur and that, all the work is done according to the responsibilities.

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3 years ago

As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loa

solniwko [45]

I believe u should not give put loans at all ,or make the interest rate very low so they 'll have a better chance to pay it off

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3 years ago

At the beginning of fiscal 2017, Wooster Company acquired a small savings and loan association for $102 million. The book value

bija089 [108]

Answer:

C. $17.25 million

Explanation:

In case of an acquisition, the assets are valued at their fair value and we will also include all unrecorded liabilities. Goodwill will be the excess payment over the net assets of the company. Excess fair value of land means that assets would increase by that amount to arrive at their fair value. Also, We have to include unrecorded liabilities in the total liabilities

Net Assets = Fair value of assets - Total liabilities

Or, Net Assets = (Book value of assets + Excess Fair value of land) - (Book value of liabilities + unrecorded liabilities)

Or, Net Assets = ($261 million + $3 million) - ($172.50 million + $6.75 million) = $84.75 million

Amount paid to acquire = $102 million

Goodwill = $102 million - $84.75 million = $17.25 million

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3 years ago

Compute the Cost of Goods Manufactured and Cost of Goods Sold for Strike Marine Company for the most recent year using the amoun

Alecsey [184]

Answer:

Instructions are below.

Explanation:

First, we need to calculate the direct material used and the manufacturing overhead:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 22,000 + 74,000 - 34,000

Direct material used= $62,000

Manufacturing overhead:

Insurance on plant $9,500

Depreciation-plant building and equipment 12,600

Repairs and maintenance-plant 3,900

Indirect labor 42,000

Total overhead= $68,000

Now, we can determine the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 41,000 + 62,000 + 88,000 + 68,000 - 27,000

cost of goods manufactured= 232,000

Finally, the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 13,000 + 232,000 - 21,000

COGS= $224,000

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3 years ago