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Scorpion4ik [409]
2 years ago
15

Review the transactions and determine the accounts, the account types (use assets, liabilities, equity, dividends, revenue, and

expenses), if they increase/decrease and if they are DR/CR.
Assets Liabilities
Beginning of the year: $27,000 $16,000
End of Year: $61,000 $25,000
1) What is the equity at the beginning of the year?
2) What is the equity at the end of the year?
3) If the company issues common stock of $5,300 and pay dividends of $44,200, how much is net income (loss)?
4) If net income is $3,800 and dividends are $6,600, how much is common stock?
5) If the company issues common stock of $16,500 and net income is $18,700, how much is dividends?
6) If the company issues common stock of $42,900 and pay dividends of $3,100, how much is net income (loss)?
Business
1 answer:
aksik [14]2 years ago
7 0

Answer and Explanation:

The computation is shown below:

1.

Beginning Equity = Beginning Assets – Beginning Liabilities

= $27,000 - $16,000

= $11,000

2.

Ending Equity = Ending Assets – Ending Liabilities

= $61,000 - $25,000

= $36,000

3.

Increase in Equity = Ending Equity – Beginning Equity

= $36,000 - 11,000

= $25,000

Now

Increase in Equity = Issue of Common Stock + Net Income - Dividend

$25,000 = $5,300 + Net Income - $44,200

Net Income = $63,900

4.

Increase in Equity = Issue of Common Stock + Net Income - Dividend

$25,000 = Issue of Common Stock + $3,800 - $6,600

Issue of Common Stock = $27,800

5.

Increase in Equity = Issue of Common Stock + Net Income – Dividend

$25,000 = $17,200 + $19,600 - Dividend

Dividend = $11,800

6.

Increase in Equity = Issue of Common Stock + Net Income – Dividend

$25,000 = $42,900 + Net Income - $3,100

Net Income (loss) = -$14,800

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Crazy boy [7]

Answer:

a. The division of activities into unit level, batch level, product sustaining level and facility level categories is commonly known as cost.

Explanation:

The managerial accounting is important for any service business. McDonalds have service business and they run on zero tolerance for disruption in consumer service. Management accounting enables to identify cost for product sustaining and batch producing.

3 0
3 years ago
ppreciation of the euro relative to the U.S. dollar will cause a U.S.-based MNC's reported earnings (from the consolidated incom
Tems11 [23]

Answer:

Decrease or fall, Purchasing

Explanation:

Appreciation is the term which is defined as the increase in the currency value relative to the another currency, which could be exchanged for a huge amount of foreign currency.

So, when there is appreciation in euro in relation to US dollar, it cause US grounded MNC reported earnings to decrease as the US dollar will not be exchanged because euro is appreciated.

And when the firm desire to reduce the exposure to the exchange rate movements, it might stabilize the reported earnings through purchasing the euros in the foreign exchange market.

6 0
3 years ago
What types of questions can be answered by analzying financial statements?
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6 0
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Read 2 more answers
Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm mainta
KATRIN_1 [288]

Answer:

Option E is correct. Pay out ratio is 73.74 %

Explanation:

Payout ratio shows how much portion of the net earning the company pay to its shareholders in form of cash dividend. Higher pay out ratio implies that company pay large portion of its earning to shareholder.

Mathematically, pay out ratio is = 1 - Retention Ratio ------ (a)

Retention ration shows portion of the earning that the company has retained for future investment or operation or growth.

Given data

Growth rate = 5 % or 0.05

Debt to equity ratio = 0.55

Assets turn over = 1.30

Profit Margin = 9 % or 0.09

Retention ration can be calculated from sustainable growth ratio formula.

Sustainable growth rate = Retention ratio x Return on equity

Sustainable growth rate means the growth rate that the company wants to maintain in future.

Retention ratio = Sustainable growth rate / Return on equity ---- (b)

Return on equity is not given the question but it can be calculated from Du Pont equation.

According to Du Pont equation,

Return on Equity = Profit Margin x Assets Turn Over x Financial leverage

Return on Equity = 0.09 x 1.30 x ( 1 + 0.55) = 0.18135

Let r be retention ratio, Then

Sustainable growth rate = (0.18135 x r)/ ( 1- (0.18135 x r))

0.05 = (0.18135 x r)/ ( 1- (0.18135 x r))

r = 0.2626 = Retention ratio

Putting the value of retention ratio in equation (a)

Payout ratio = 1 - Retention ratio = 1 - 0.2626 = 0.7374 or 73.74 %.

 

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How does business generate income?
Luden [163]

Hai!

This depends on the Type of Business.

If it is a Selling Business, they sell stuff to Earn Profit.

If its a Free Online Website/Game. They earn money by either in game purchases or Web Site purchases.  

4 0
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