What do smart companies do to account for depreciation?

The system of ownership of real property in the united states is what?

enot [183]

Can you re word the question please

5 0

4 years ago

Calculate working capital based on the following:

Georgia [21]

Answer:

Working capital $550,000

Explanation:

Given that

The Current ratio is 2:1

Inventory is $200,000

And, the quick ratio is 1:7

Now as we know that

Current ratio = Current assets ÷ current liabilities

2.1 = Current assets ÷ current liabilities

2.1 current liabilities = current assets

And, the quick ratio is

Quick ratio ÷ quick assets ÷ current liabilities

1.7 = (Current assets - inventory) ÷ current liabilities

1.7 = (Current assets - $200,000) ÷ current liabilities

1.7 current liabilities = current assets - $200,000

Now put the value of current liabilities

1.7 current liabilities = 2.1 current liabilities - $200,000

$200,000 = 2.1 current liabilities - 1.7 current liabilities

$200,000 = 0.4 current liabilities

So, current liabilities

= $200,000 ÷ 0.4

= $500,000

Now the current assets = 2.1 × $500,000

= $1,050,000

Now the working capital is

= Current assets - current liabilities

= $1,050,000 - $500,000

= $550,000

6 0

3 years ago

Questions 1. How you rename a worksheet?

melamori03 [73]

1. Right-click on the tab of the worksheet you want to rename to open the context menu.
2. Click on Rename in the menu list to highlight the current worksheet name.
3. Type the new name for the worksheet.
4. Press the Enter key on the keyboard to complete renaming the worksheet.

8 0

3 years ago

An automotive magazine charges an annual subscription fee of $300, with customers prepaying the fee. Subscribers receive 50 iss

love history [14]

Answer:

The numbrer of performance obligations is equal to the number of new subscribers.

Explanation:

Each new subscriber generates a performance obligation, as the automotive magazine provides a coupon to each new subscriber, and each coupon is a promise to provide the discount.

A perfomance obligation is a contractual promise to provide a “distinct” good or service to a customer" (taken from the internet).

Whether or not the an obligation will be recognized or not will depend on whether the subscriber uses the coupon or not, but that does not depend on the will of the automotive magazine: they are obliged to provide the discount to every subsriber that uses the coupon (within the terms of the contract).

Thus, since each coupon is a contract, each one is a performance obligation.

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

PV of dividend in year 3

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