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If a company receives $12,000 from the stockholders to establish a corporation, the effect on the accounting equation would be:_

Darina [25.2K]

Answer:

The correct answer is option A

Explanation:

A receipt of cash indicates an increase in cash which is an asset. When an asset increases, it is represented by a debit to that asset's account and the asset side of the accounting equation is also debited. Thus, a receipt of $12000 cash from stockholders will be represented by a debit or an increase to the asset account for $12000.

The other side of the transaction would be a credit to the equity for $12000 because the stockholders are the owners of the company and any capital invested by the owners in the company is represented by a credit to the equity account as the capital is credited when it increases. Thus, the effect on accounting equation will be an increase in the equity of $12000.

4 0

2 years ago

3. ___________ involves an increased focus on identifying and using data internally and across a supply chain so that a company

QveST [7]

Answer:

Strategic sourcing

Explanation:

Strategic sourcing is a process that is part of the supply chain management in which the organization analyzes and reviews its procurement activities and from that, makes improvements to these activities to add more value. According to this, the answer is that strategic sourcing involves an increased focus on identifying and using data internally and across a supply chain so that a company can consolidate its purchasing power for enhanced value.

4 0

3 years ago

Stocks X and Y have the following data. The market risk premium is 5.0% and the risk-free rate is 4.6%. Assuming the stock marke

Nat2105 [25]

Answer:

b. Stock X has the higher dividend yield.

Explanation:

We solve for the cost of equity of each stock using CAMP then, with the gordon model we determinate the price ofthe share expressed in Dividends.

Stock X

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.046

market rate = 0.09

premium market = (market rate - risk free) 0.05

beta(non diversifiable risk) = 1.5

$Ke= 0.046 + 1.5 (0.05)$

Ke 0.12100

Dividend grow model:

D/(r-g) = Value of the share

0.121 - 0.06 = 0.061

D/0.061 = 16.39D

Stock Y

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.046

market rate = 0.09

premium market = (market rate - risk free) 0.05

beta(non diversifiable risk) = 0.5

$Ke= 0.046 + 0.5 (0.05)$

Ke 0.07100

Dividend grow model:

D/(r-g) = Value of the share

0.071 - 0.06 = 0.011

D / 0.011 = 90.90D

The stock X is value 16.39 times his dividends

while stock Y is valued 90.90 times his dividends

Thus, being Dividend Yield the Dividend per share over the price of the share it will be higher on stock X than stock Y

7 0

3 years ago

Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sale

skelet666 [1.2K]

Given :

Apr-02 :

Cash = 2700

Sales = 2500

Sales Tax Payable = 200

Apr-03 :

Sales returns and allowances = 250

Apr-04:

Accounts receivable = 1134

Apr-06:

Sales returns and allowances = 150

8 0

3 years ago

The inventory turnover ratios for Proctor and Gamble over the past three years are 5.09, 5.72, and 5.92 times, respectively. Exp

Dovator [93]

Explaining the upward trend in the inventory turnover ratio requires more examination into the factor responsible for the cause of the increase in inventory turnover. Inventory turnover could be as a result of declining inventory or increasing sales.

<h3>Description of inventory turnover.</h3>

Inventory turnover is an example of an activity ratio Activity ratios measure a firm's efficiency in performing daily tasks.

Inventory turnover is cost of goods sold divided by average inventory.

The higher inventory turnover is, the better. But it should be noted that a higher inventory turnover could be a s result of declining inventory or increasing sales.

To learn more about financial ratios, please check: brainly.com/question/26092288

5 0

2 years ago