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3 years ago

Which of the following is an example of investment in capital?

Business

1 answer:

Zigmanuir [339]3 years ago

8 0

Answer:

(a) reinvesting company profits in updated technology

Explanation:

Investments in capital refer to spending money to acquire physical assets for use in a business. The acquired assets are expected to assist a company to generate revenue in many financial periods. Investments in capital involve huge sums of money. Businesses may need to borrow to finance investments in capital.

Reinvesting company profits in updated technology is an example of investment in capital. The updated technology is an asset with a useful life of more than one year. It will help generate revenues into the future and make the business more competitive in the mar

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In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 191.33 million shares outstanding, a market-to-book r

lubasha [3.4K]

Answer:

$0.86

Explanation:

Earnings per Share = Earnings attributable to holders of Common Stock ÷ Weighted Number of Common Stocks Outstanding.

where,

Earnings attributable to holders of Common Stock = $163.82 million

and,

Weighted Number of Common Stocks Outstanding = 191.33 million

Therefore

Earnings Per Share = $163.82 million ÷ 191.33 million

= $0.86

7 0

2 years ago

Bradshaw Inc. is contemplating a capital investment of $88,000. The cash flows over the project’s four years are: Year Expected

Yuri [45]

Answer: 3.50 years

Explanation:

The Payback period is a method of checking the viability of a project. It measures how long it will take a project to pay back it's initial investment.

Formula is;

= Year before payback + Cash remaining till payback/ Cash inflow in year of payback

Year 1 Net Cash Inflow

= Cash Inflow - Cash Outflow

= 30,000 - 12,000

= $18,000

Year 2

= 45,000 - 20,000

= $25,000

Year 3

= 60,000 - 25,000

= $35,000

Year 4

= 50,000 - 30,000

= $20,000

Year 1 + 2 + 3

= 18,000 + 25,000 + 35,000

= $78,000

Amount remaining till payback

= Investment - Cash inflow so far

= 88,000 - 78,000

= $10,000

= Year before payback + Cash remaining till payback/ Cash inflow in year of payback

= 3 + 10,000/20,000

= 3.50 years

8 0

3 years ago

Importance of economic growth

svlad2 [7]

Answer:

Economic growth generates job opportunities and hence stronger demand for labour, the main and often the sole asset of the poor. In turn, increasing employment has been crucial in delivering higher growth.

8 0

1 year ago

When workers negotiate as a group with employers, they are engaging in ____.

Jlenok [28]

Collective Bargaining

3 0

3 years ago

Ronald, Ross, and Carol opened a partnership firm. Ronald has a capital of $77,000; Ross has a capital of $119,000; and Carol

gtnhenbr [62]

Answer:

A. Carol, Capital is debited for $4,500

Explanation:

The question says to determine amount to be included in the journal entry to record Ronald's withdrawal from the partnership

Assumption: Equal Profit- loss sharing is the agreement between the existing partners.

First premise: Ronald's Capital in the Partnership = $77,000

However, Ronald received a payment of $86,000 meaning that there is an excess of $86,000-$77,000= $9,000

Since the agreement is equal profit and loss sharing, it means each of Ross and Carol will contribute 1/2 of the $9,000.

The journal entry to record this transaction is as follows:

Particulars Debit Credit

Carol Capital Account $4,500

Ross Capital Account $4,500

Ronald Capital Account $9,000

Being the equal contribution of excess amount paid to Ronald on exit from the partnership by Carol and Ross.

Based on the multiple choices, the correct answer is Carol, Capital is debited for $4,500

4 0

3 years ago