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guapka [62]
3 years ago
14

Multiple Choice Question Mahan Corporation expects total sales to increase by 20% over the next year. The corporation has no spa

re capacity and must increase plant and equipment by 20%. The corporation currently has $100,000 in assets, $40,000 in debt, and $60,000 in equity. The corporation desires to maintain the debt-equity ratio. The corporation's debt will be _____. Multiple choice question. $72,000 $40,000 $60,000 $48,000
Business
1 answer:
AlekseyPX3 years ago
3 0

Answer:

$48,000

Explanation:

The computation of the corporation debt is shown below:

Since the asset is increased by 20%

The present asset is $100,000

ANd, the increased assets is

= $100,000 + $100,000 × 0.20

= $100,000 + $20,000

= $120,000

Now the debt is

= $120,000 × 0.4

= $48,000

hence, the last option is correct

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The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: Beginni
melamori03 [73]

Answer:

City of Buffalo Falls

a. Journal Entries:

Beginning balances:

Jan.1, 2020 :

Description                 Debit                Credit

Cash                        $93,000

Taxes Receivable  $189,500

Accounts Payable                              $52,250

Fund Balance                                   $230,250

To record opening balances of the General Fund.

Transactions during the year:

Description                 Debit                Credit

Taxes Receivable      $1,230,000

Estimated Revenue                         $1,230,000

To record the estimated revenue for the year.

General Government  $1,227,400

Accounts Payable                            $1,227,400

To record the estimated appropriations for the year.

Property taxes receivable $915,000

Other revenue receivable $315,000

Estimated revenue                              $1,230,000

Cash Account                  $1,182,500

Property taxes receivable                     $885,000

Other revenue receivable                    $297,500

To record the cash receipts.

Contracts                                  $95,250

Accounts Payable                                      $95,250

To record contracts for services.

Debit General Government  $963,500

Credit Accounts Payable                        $963,500

To record the other expenditures.

Debit Accounts Payable      $1,092,500

Credit Cash Account                              $1,092,500

To record payment on account.

b. Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund:

Estimated Revenue   $1,230,000

less Expenditure:

Contracts                          95,250

Other expenditures       963,500

Change in fund             $171,250

Fund balance b/f           230,250

Fund balance c/f          $401,500

c. Balance Sheet for the General Fund:

Cash                              $183,000

Taxes Receivable           237,000

Total assets                 $420,000

Accounts Payable            $18,750

Fund balance                  401,500

Total liabilities + Fund $420,250

Explanation:

a) Cash Account:

Beginning balance            $93,000

Property taxes                   885,000

Other revenue                  297,500

less Accounts payable   1,092,500

Ending balance               $183,000

b) Taxes Receivable

Beginning balance           $189,500

Estimated Revenue        1,230,000

less Receipts:

Property taxes                  885,000

Other revenue                 297,500

Ending balance             $237,000

c) Accounts Payable

Beginning balance        $52,500

Other expenditure        963,500

Contracts                        95,250

Less payments           1,092,500

Ending balance              $18,750

4 0
3 years ago
A broker-dealer and its agent are registered in State A. The agent tells a customer in State A that he is prohibited from making
OlgaM077 [116]

Answer:

There is a violation of Uniform State Law because the agent has made an offer to sell an unregistered non-exempt security in that State

Explanation:

The Uniform State Securities Law is also called blue sky law, and they are put in place at the State level to prevent fraud and to enforce security regulation.

This law was set up to handle investments that do not occur at the federal level. These are out of the purview of the SEC so states handle them.

In the given scenario the agent is trying to make a non exempt security exempt by buying it from the client.

This is an attempt to sell the securities to investors through fraudulent means and it is a violation of Uniform State Law

8 0
3 years ago
Suppose the monopolist is thinking about charging men a 10% higher price. if the monopolist does so, the quantity demanded by me
vovikov84 [41]
It would not fall at all. Monopolists own the entire industry meaning the consumers have no alternatives. If they have no alternative they have no choice but to buy even if the price increases
5 0
3 years ago
Using someone else's money, promising to repay at a future date, and paying a fee for use of the money, is the definition for:
Karolina [17]
Hello, this would be credit
5 0
4 years ago
Read 2 more answers
Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $206,000; Costs = $123,000; Other expe
EastWind [94]

Answer:

a. What is the 2018 operating cash flow?

$31,200 + $14,000 = $45,200

b. What is the 2018 cash flow to creditors?

-$13,100 - $3,100 = -$16,200 (it is negative since interests and principal were paid to creditors)

c. What is the 2018 cash flow to stockholders?

-$10,000 + $4,600 = -$5,400 (it is negative since more dividends were paid to stockholders than new equity raised)

d. If net fixed assets increased by $22,000 during the <em>year, what was the addition to NWC?</em>

net capital spending = depreciation + increase in fixed assets = $14,000 + $22,000 = $36,000

cash flow from assets = cash flow to creditors + cash flow to stockholders = -$16,200 - $5,400 = -$21,600

change in net working capital = operating cash flow + cash flow from assets  - net capital spending = $45,200 - $21,600 - $36,000 = $12,400

Explanation:

net income = $206,000 - $123,000 - $7,900 - $14,000 - $13,100 - $16,800 = $31,200

8 0
3 years ago
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