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3 years ago

If a company purchases equipment costing $5,100 on credit, the effect on the accounting equation would be:

Business

1 answer:

alex41 [277]3 years ago

4 0

Answer:

assets increase $5,100 and liabilities increase $5,100

Explanation:

Assets are the items that a company owns which can provide future economic benefit.

Liabilities are future sacrifices of economic benefits that an entity is obliged to make to other entities as a result of past transactions or other past events, hence Liabilities are what a person or company owe other parties.

If a company purchases equipment costing $5,100 on credit, the assets of the company will increase by $5100 as a result of acquiring an equipment. Also, the liability will increase by $5100 as a result of debt owed.

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Goodell Corporation just paid its annual dividend of $1.75, today. Dividends for the Goodell Corporation are expected to increas

AlekseyPX

Answer:

current price of Goodell Corporation stock is $48.26

Explanation:

given data

annual dividend = $1.75

expected to increase 1 year = 27.5 percent

expected to increase 2 year = 13.8 percent

expected to increase per year = 5 percent

required rate of return = 10 percent

solution

we get here first dividend that is

D1 = 1.75 × (1.275) = 2.23 ...............1

D2 = 2.23 × (1.138) = 2.54 ...............2

D3 = 2.54 × (1.05) = 2.67 ...............3

and

year 2 price will be

P2 = D3 ÷ (R – g) ...............4

P2 = 2.67 ÷ (0.10 - 0.05)

P2 = 53.4 ...............5

so current price will be

P = 2.23 ÷ (1.10) + 2.54 ÷ (1.10)2 + 53.40 ÷ (1.10)2

P = $48.26

4 0

3 years ago

On January 1, 2018, the Cook's Restaurant decides to invest in Lake Topsey bonds. The bonds mature on December 31, 2021, an

charle [14.2K]

Answer and Explanation:

The Journal Entry is shown below:-

Investment in bonds is at face value, no question about discount or premium.

Investment is rendered from the time the bonds mature before 2023. Hence, it is an investment as Working for Profit "Held until maturity"

Jan 1, 2018

Bonds receivables Dr, $140,000

To Cash $140,000

(Being Investment in bonds is recorded)

30 June 2018

Cash Dr, $2,400

To interest income $2,400

(Being six months interest received is recorded)

31 Dec 2018

3. Cash Dr, $2,400

To interest income $2,400

(Being six months interest received is recorded)

Working note:-

Bond Value $140,000

Interest rate 4%

Interest earned half

yearly, effective rate

(4% × 6 ÷ 12) 2%

Half Yearly interest amount

($140,000 × 2%) $2,800

3 0

3 years ago

Read the article "Organizational Characteristics and Use of Balanced Scorecard Measures in Executive Compensation" by Pollanen a

Gnoma [55]

Answer:

Consider the following explanation

Explanation:

Executive compensation depends on the overall performance of the company sequentially. It depends on various factors which determine the success of the organization. There has being a tool where the overall performance of the company and its overall standpoint is mentioned explaining in detail the occurrence of various events. Balanced score card is nothing but a report card explaining performance. Executive compensation attracts a clause of payment of a certain percentage only after achieving certain specific performance targets. Balanced score cards includes following things

Learning and growth perspective: it includes what the employees learn from the system, their training which is an essential aspect to increase their productivity.

Business perspective: determines how business are performing with regards market capitalization or client conversion ratios, also concerns about the region the business is growing into.

customer perspective: what customer wants, and what is being delivered to him, it helps company to close the gap to increase quality of delivery

Financial perspective: explains ratios, profits, losses, analysis regarding the financial position of the company.

8 0

4 years ago

After first obtaining a real estate sales license, said licensee must take how many DRE core three-hour approved continuing educ

Thepotemich [5.8K]

Answer:

Explanation:

8 0

3 years ago

Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has investe

gtnhenbr [62]

Answer:

Crawford Construction

1. Crawford Construction sold and replaced its inventory:

a. 4.14 x

2. With Construction Industry Inventory Turnover Ratio as 4.55x, Crawford Construction:

b. Crawford Construction is holding more inventory per dollar of sales compared to the industry average

Explanation:

a) Data and Calculations:

Quick ratio = 2.00x,

Cash = $36,225

Accounts receivable = $20,125

Inventory = x

x= $80,500 - 36,225 - 20,125 = $24,150

Total current assets = $80,500

Total current liabilities = $28,175

Annual sales = $100,000

Using annual sales instead of cost of goods sold to calculate the inventory turnover, = Turnover/Inventory = $100,000/$24,150 = 4.14x

b) Quick ratio equals (Current assets - Inventory)/Current Liabilities. Computing the quick ratio in place of the current ratio can be used to identify how Crawford Construction can meet its current (short-term) debts without selling inventory and recovering funds from the sale.

c) The Inventory Turnover Ratio divides the cost of goods sold by the average inventory. The Sales value can approximate the cost of goods sold. The ratio shows the efficiency of Crawford Construction in handling its inventory. The higher the value of the ratio, the better, showing that Crawford is more efficient when it gets a higher turnover ratio.

7 0

3 years ago