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2 years ago

Hofnim, Inc. had the following account balances on September 30, 2016. What is Hofnim's net income for the month of September

Business

1 answer:

goldfiish [28.3K]2 years ago

6 0

Answer:

$22750

Explanation:

Calculation for What is Hofnim's net income for the month of September

Hofnim's NET INCOME

Fees Earned 64,000

Less Miscellaneous Expense (19,700)

Less Rent Expense (5,100)

Less Wages Expense (16,450)

NET INCOME $22,750

Therefore the NET INCOME will be $22,750

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Shaw Industries purchased a large piece of equipment from Charles Company on January 1, 2014. Shaw industries signed a note, agr

andrezito [222]

Answer:

Interest expense for the year: 25,401.6

Explanation:

Carrying value of the note x 8% = interest on note payable

317,520 x 8% = 25,401.6

The interest expense will be for this amount

And the journal entry will be as follow

Interest Expense 25,401.6

Note Payable 25,401.6

As the note is discounted, we will recognize interest until maturity against the note, so it reach their face value at maturity.

Because this interest won't be exigible until maturity, they are accrued interest but do not invovle a cash disbursmement for the period.

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2 years ago

Which of the following are present value methods of analyzing capital investment proposals? a. internal rate of return and avera

Dmitriy789 [7]

Answer:

C) Net present value and internal rate of return

Explanation:

Of the methods discussed, cash payback and average rate pf return does not take into account the time value of money. Cash payback and ARR basically only use the cash flows and profits in relevance to the investment.

Net present value as the name suggests, discounts these cash flows and then subtracts the initial outlay costs and Internal rate of return also discounts the project cash flows so that they equal zero. Thus these two are the options that take into account the time value. IRR often is calculated by discounting cash flows at different rates until the NPV = 0.

Hope that helps.

8 0

2 years ago

What is the legal business name of a sole proprietorship

I am Lyosha [343]

Answer:

i dont know

Explanation:

4 0

2 years ago

How do Government price ceilings and price floors affect the economy? Select all that apply.

serg [7]

The following options are correct: A, B AND C.
Price ceiling and price floor are two price control methods which the government used to control price. Price ceiling is used to prevent prices from been too low while price floor is lowest price a commodity can be sold for .

7 0

3 years ago

A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a ra

ArbitrLikvidat [17]

Answer:

Current price of stock =$128.06

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The model is given as

P = D× g/(r-g)

P- price, D- dividend payable in year 1, r -cost of equity, g - growth rate in dividend

Cost of equity

The cost of equity can be calculated using the Capital Asset Model (CAPM).

Ke= Rf +β(Rm-Rf)

Ke =? , Rf- 6.5%, (Rm-Rf)- 1.5, β- 1.3

Ke=6.5% + 1.3× (1.5)= 8.45%

Stock price

PV of dividend in year 1 = 3.4× 1.17× 1.0845^(-1)=3.668

PV of dividend in year 2 = 3.4× 1.17^2× 1.0845^(-2) = 3.9572

<em>PV of dividend in year 3</em>

This will be done in two(2) steps:

Step 1- PV in year 2 terms

3.4× 1.17^2× 1.05/(0.0845- 0.05)= 141.651

Step 2- PV in year 0

141.6513913× 1.0845^(-2)= 120.4375

Current piece of stock = 3.668 + 3.957 + 120.4375 = 128.062

Current price of stock =$128.062

5 0

3 years ago