1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
devlian [24]
2 years ago
12

The following trial balance was extracted from the books of Kalekeno, a sole trader, at 31st Dec2018:

Business
1 answer:
vesna_86 [32]2 years ago
7 0

Answer:

Stock DEC 31st 2017 23,680

Carriage outward 2,000

Carriage inwards 3,100

Returns 2050 3,220

Purchases and sales 118,740 186,000

Salaries and wages 38,620

Rent 3040

Insurance 780

Motor expenses 6,640

Office expenses 2160

Lighting and heating expenses 1,660

General expenses 3140

Premises 50,000

Motor vehicles 18,000

Fixtures and fittings 3,500

Debtors and creditors 38,960 17,310

Cash at bank 4820

Drawings 12,000

Capital 126,360

332,890 332,890

Additional information

i) Closing stock was valued at ksh 29,460 as at 30th June 2018

ii) Mr kalekeno took part of the stock amounting to ksh 3000 for personal use

iii) Salaries and wages amounting to ksh 8,000 were pre-paid and ksh 360 of motor expenses accrued

iv) Bad debts written off amounted to 860

v) Depreciation is to be provided for as follows:

 Premises at 20%

 Fixtures and fittings at 15%

 Motor vehicles at 25%

All of a above asset were depreciated at cost

a) The income statement for the year ended 30 th June 2018 ( 5marks)

b) The statement of financial position (5 Marks)​

Explanation:

You might be interested in
Pharmecology just paid an annual dividend of $2.00 per share. It’s a mature company, but future EPS and dividends are expected t
lesantik [10]

Answer:

a. Current Stock Price is $ 30.67

b. Current Stock price using forecasted real dividend and a real discount rate is $ 69.00

Explanation:

a. The question belongs to dividend discount model. It is used to calculate intrinsic price of the stock. This model assumes that price of stock or share is equal to net present value of its future dividends.

Price of Stock =  (Current year Dividend x ( 1+ growth rate)) / (nominal cost of capital - growth rate)

Current year Dividend = $ 2

Nominal Cost of Capital = 10.25 % or .1025

Growth rate = 3.50 % or 0.0350

Price of Stock = ( $2 x (1 + 0.035) / (.1025 - .035))

Price of Stock =  $ 2.07 / ( .1025 - 0.0350) = $ 30.67  

b. Price of Stock = Current year Dividend + (Dividend x( 1+ growth rate)) / (real cost of capital - growth rate)

Real Cost of Capital = [ (1 + nominal cost of Capital) / ( 1 + inflation rate)-1 ]

Inflation rate = 3.50 % or .0350

Real Cost of Capital  = [ ( 1 + .1025) / ( 1 + .0350) - 1 ] = 0.0652 or 6.50 %

Price of Stock =(Dividend x ( 1 + growth rate)) / ( Real cost of Capital - Inflation rate)

Price of Stock = ($ 2 x ( 1 + 0.0350)) / (0.0650 - 0.0350)  

Price of Stock = $ 69          

   

7 0
3 years ago
When a buyer’s willingness to pay for a good is equal to the price of the good, the?
viktelen [127]
Measures the value that a buyer places on a good
7 0
2 years ago
Beau Corporation sells a unit of its product for​ $250 per​ unit, while its variable costs per unit are​ $75. Fixed cost are bud
wolverine [178]

Answer:

Number of units that must be sold to earn the target profit is 3000 units.

The contribution margin ratio is 0.70

Explanation:

We will use the break even analysis modified for target profit to calculate the number of units needed to earn the desired

The break even point in units is calculated by dividing the fixed cost by the contribution margin per unit. To calculate the number of units required to earn the desired profit, we add the desired profit to fixed cost and divide it by the contribution margin per unit.

Contribution margin per unit = 250 - 75  =  $175

Number of units required to earn target profit = (325000 + 200000) / 175

Number of units required to earn target profit = 3000 units

The contribution margin ratio is = 175 / 250   =  0.7 or 70%

Dollar Sales required to earn target profit = $4,812,500

8 0
3 years ago
True or false: if society wishes to reduce overall pollution by a certain amount, it is efficient to have firms with highest pro
AveGali [126]
TRUE

If the society wishes to reduce overall pollution by certain amount, it is efficient to have firms with highest profit bearing the largest burden of reducing pollution and firms with lowest profit bearing the least burden. This is because it will not lead to overall burden on the small firms. If large firms and small firms were to reduce the pollution burden on same rate then it will be very costly for the smaller firms to bear that and it will be a burden of cost on smaller firms.
3 0
3 years ago
Leslie works for a local ad agency as an intern. The agency is hired to develop an advertising campaign for a chain of coffee sh
Blizzard [7]

Answer:

With reference to the above scenario, "big ideas":

could become the bases of creative and successful advertising campaigns.

Explanation:

  • The 1st option is not correct as the statement "big ideas are impossible to develop as they are not applicable to retail chains" is not correct because ideas are required by every company.
  • The statement which states that big ideas are only needed in advertising for consumer services is not correct as every industry needs advertising.
  • The statement which states that big ideas are typically not the bases for effective advertising campaigns is also incorrect as big ideas are necessary fro effective advertising campaigns.
  • Big ideas are not limited to the advertisement of business to business scenario yet they are applicable to every kind of advertisement.
  • So the statement which states that big ideas can become the bases of creative and successful advertising campaigns is correct.
5 0
2 years ago
Other questions:
  • The manager of Calypso, Inc. is considering raising its current price of $30 per unit by 10%. If she does so, she estimates that
    11·1 answer
  • Lakeside Inc. produces a product that currently sells for $57.60 per unit. Current production costs per unit include direct mate
    7·1 answer
  • Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total cur
    8·1 answer
  • What is the name of the diagram that shows physical needs must be met befroe all other needs and wants?
    8·1 answer
  • Factors that influence global climate patterns include all of the following except _________.
    8·1 answer
  • The four step instructional training method introduced in World War I used the following steps​
    8·1 answer
  • An environmental soil cleaning company received a contract to remove BTEX contamination from an oil company tank farm site. The
    9·1 answer
  • Dont give some bolonie long answer just say a, b, c , or d and If you don’t now or you think you now don’t answer thanks
    5·1 answer
  • A company's current assets are $26,420, its quick assets are $15,090 and its current liabilities are $12,520. Its acid-test rati
    13·1 answer
  • How old does a senator have to be?
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!