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3 years ago

Julie wants to buy a car and is deciding how she should invest her money. To best meet her needs, she should

Business

1 answer:

Black_prince [1.1K]3 years ago

3 0

Answer: invest in US savings bonds because of its short term.

Explanation: Investing in savings bonds will help Julie get more money so she can buy her car but at the same time have more money. Julie can get her money out in no time if she needs it and she'll have bigger profits.

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1. In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expec

Juli2301 [7.4K]

Answer:

1. In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive $40 in annual dividends.

$200,000 / 5,000 = $40

2. If Blue Hamster has 400,000 shares of common stock issued and outstanding, then the firm’s earnings per share (EPS) is expected to change from $12.06 in Year 1 to $14.70 in Year 2.

$4,822,000 / 400,000 = $12.055

$5,881,750 / 400,000 = $14.70

3. Blue Hamster’s before interest, taxes, depreciation and amortization (EBITDA) value changed from $10,500,000 in Year 1 to $13,125,000 in Year 2.

$30,000,000 - $19,500,000 = $10,500,000

$37,500,000 - $24,375,000 = $13,125,000

4. It is incorrect to say that Blue Hamster’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings. This is because all but one of the item reported in the income statement involve payments and receipts of cash.

depreciation and amortization expenses are not cash outflows.

Explanation:

this question is incomplete and we must prepare the income statement for next year:

sales 37,500,000

variable costs (24,375,000)

fixed costs (1,200,000)

EBIT 11,925,000

interest expense (1,788,750)

Pretax income 10,136,250

income taxes (4,054,500)

net income 6,081,750

preferred stock dividends 200,000

common stock dividends 1,824,525

8 0

4 years ago

Management accountants would not assist in budget planning. prepare reports primarily for external users. be concerned with the

Keith_Richards [23]

Answer:

B) Prepare reports primarily for external users

8 0

4 years ago

Read 2 more answers

When experiences are insufficient and the risk of making a wrong decision i high, a consumer is more likely to use _____________

Aleksandr-060686 [28]

CORRECT ANSWER:

An external search.

STEP-BY-STEP EXPLANATION:

Where past experience or expertise is inadequate, there is a high risk of making a wrong buying decision and a low cost of gathering information. We have 3 primary sources.

The primary sources of external information are

1-personal sources

2-public sources

3- marketer-dominated sources

8 0

3 years ago

Read 2 more answers

XYZ has 400,000 shares of common stock outstanding, a P/E ratio of 8, and $500,000 in net income. The board of directors has jus

alexira [117]

Answer:

$1,000

Explanation:

If total earnings are $500,000 and there are 400,000 shares, the original price per share is determined by:

$P=\frac{P}{E}*E\\ P=8*\frac{\$500,000}{400,000} \\P=\$10\\$

The value of your invest will be same before and after the split, what will change is the number of shares and their individual price.

If you owned 100 shares at $10 each, the value of your investment is:

$I = \$10*100\\I=\$1,000$

Total value of your investment will be $1,000.

4 0

3 years ago

On January 1, 2016, Horton Inc. sells a machine for $25,800. The machine was originally purchased on January 1, 2014 for $46,700

harina [27]

Answer:

a) a loss of $2220 would be recorded.

Explanation:

Calculation for the Loss on sale

First step is to calculate the Depreciation per annum using this formula

Depreciation per annum = (Purchase Cost-salvage value) / Useful life

Depreciation per annum = 46700/5

Depreciation per annum= $9,340

Second Step will be to calculate the 31/12/15 Book Value

1/1/14 Purchase cost $46,700

Less: 31/12/14 Depreciation for the year ended 31 ($9,340)

31/12/14 Book Value $37,360

($46,700-$9,340)

Less: 31/12/15 Depreciation for the year ended ($9,340)

31/12/15 Book Value $28,020

($37,360-$9,340)

Last step is to calculate the Loss on sale

1/1/16 Value $28,020

1/1/16 Less Sale value ($25,800)

Loss on sale $2220

(28,020-25,800)

Therefore the correct option is :a loss of $2220 would be recorded.

3 0

3 years ago