Answer:
a. Supplies Expense $3,700Supplies $3,700
Explanation:
The entries required when supplies are purchased is
Debit Supplies account
Credit cash/accounts payable
At the point of use of these supplies, the entries required are
Debit Supplies expense account
Credit supplies account
Hence the supplies used
= $5,000 - $1,300
= $3,700
Entries to be posted to adjust
Debit Supplies expense account $3,700
Credit supplies account $3,700
Answer:
e. $89.83
Explanation:
Calculation to determine the current share price
First step is to calculate the Value after year 4 using this formula
Value after year 4=(D4*Growth rate)/(Required rate-Growth rate)
Let plug in the formula
Value after year 4=(4*1.05)/(0.1-0.05)
Value after year 4=$84
Now let calculate the current share price using this formula
Current share price=Future dividend and value*Present value of discounting factor(rate%,time period)
Let plug in the formula
Current share price=16/1.1+12/1.1^2+7/1.1^3+4/1.1^4+84/1.1^4
Current share price=$89.83(Approximately)
Therefore the current share price is $89.83
Answer:
<h2>The answer, in this case, would be true or option a) given in the answer choices.</h2>
Explanation:
- In any business, an outside director is commonly identified as an individual who is officially not an employee or a shareholder of the company or business enterprise.
- An outside director can board meetings, analyze essential business information and interact and share opinions with the shareholders regarding company decisions and operational modes.
- The outside director is also eligible to receive certain financial benefits such a periodic annual fee and other stock/bond investment options.
Answer:
The net income is $150,500 and the return on assets is 20.06 %
Explanation:
The formula for computing net income and return on assets is shown below and the computation is also made.
Net income = Sales revenue × Profit margin
= $2,150,000 × 7%
= $150,500
Return on assets = Net income ÷ total assets
= $150,500 ÷ $750,000
= 0.2006
= 20.06 %
Thus, the net income is $150,500 and the return on assets is 20.06 %
Answer:
180 000 common stock shares outstanding
Explanation:
preference shares are not used in calculating earning per share. Earning per share is the part of the firm's profit that is attributed to common stock shares. It is an indicator of financial strength of a company. It also shows the intrinsic value of the company's shares. This can be used to determine if a share is overvalued or under valued in the equity market.
The company has 120, 000 common stock shares and issued additional 20,000 common stock shares totaling 180,000 common stock shares.
