Many people keep working long after retirement age because work:

Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the

zmey [24]

Answer:

The question posted is seemingly incomplete and needs further information to be completed.

Firstly, a trial balance is a statement proving whether or not the double-entry principle has been applied correctly. It is a statement with all the debit and credit balances of all the accounts on record. The double-entry system is proven correctly when the total of the debit balances equals the total of the credit balances.

Secondly, an income statement is statement showing the financial performance or disposition of a business over a period of time. The income statements shows the balances of all the income accounts (Sales, Interest income, Rental income, etc.) and the expense accounts (Cost of Sales, Rent expense, Depreciation, etc.). The income statement will then show either a net profit or net loss once the total expenses are subtracted from the total income.

Explanation:

To help you with the exercise in drawing up a trial balance and an income statement, please find attached a template example of each and use the template example to help you further.

Download xlsx

3 0

3 years ago

Walt is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $12,

Sindrei [870]

Answer:

$38,771.44

To achieve at least the 8% rate Walt can pay until this amount.

Explanation:

The goal would be to calcualte the present value for each cashflow using the expected rate of 8%

$\left[\begin{array}{ccc}-&Cash Flow&Discounted\\Year \: 1&12,500&11,574.0740740741\\Year \: 2&10,000&8,573.38820301783\\Year \: 3&7,500&5,953.74180765127\\Year \: 4&5,000&3,675.14926398227\\Year \: 5&2,500&1,701.45799258438\\Year \: 6&0&0\\Year \: 7&12,500&7,293.62994077667\\Total&50,000&38,771.4412820865\\\end{array}\right]$

$\frac{Principal}{(1 + rate)^{time} } = Present \: Value$

<em><u>For example year 3</u></em>

$7,500\div \: 1.08^3 = 5953.74180765127$

Then we add each cashflow, to get the present value of the project.

To achieve at least the 8% rate Walt can pay until this amount.

5 0

3 years ago

DFB, Inc.,expects earnings this year of $5 per share, and it plans to pay a $3 dividend to

Kisachek [45]

Answer:

a) Growth rate of earnings

using the sustainable growth rate formula which is the maximum growth rate that a company can sustain without external financing:

Growth rate = ROE * (1 - retention rate)

= 15% * (1 - 40%)

= 15% * 60%

= 9%

(Retention rate = 2/5 * 100 = 40%)

b) Price of equity using dividend growth model:

P₀ = D₀ (1 + g) / (re – g)

D₀ = the current dividend (whether just paid or just about to be paid) = $3

g = the expected dividend future growth rate = from A above (9%)

re = the cost of equity = 12%

= 3 (1 + 0.09) / (0.12 - 0.09)

= $109

c) Price of equity

P₀ = D₀ (1 + g) / (re – g)

= 4 (1 + 0.09) / (0.12 - 0.09)

= $145.33

Explanation:

At the estimated growth rate of 9%, should DFB increase the dividend payout, the price of equity would amount to $145.33 which is higher than the previous price of $109, so DFB is advised to raise its dividend

8 0

4 years ago

You are the regional sales manager for Standard Publishing Co. The company is preparing adjusting entries for the year ended Mar

solniwko [45]

Answer:

Standard Publishing Co.

The amount of subscription revenue that should be reported on the income statement for the year ended March 31, 2021 is:

= $35,000.

Explanation:

a) Data and Calculations:

September 1, 2020 Cash receipt for magazine subscriptions for three years = $180,000

This subscriptions is equal to 36 months subscription.

The amount of subscription revenue to report for the year ended March 31, 2021 = $35,000 ($180,000 * 7/36).

From the above calculation, a month's subscription revenue = $5,000 ($180,000/36)

Therefore, seven months' subscription from September 1, 2020 to March 31, 2020 = $35,000 ($5,000 * 7).

The unearned subscription revenue is debited with $35,000, while earned subscription revenue is credited with the same amount.

8 0

3 years ago

In the AS/AD model, as the price level falls, the holders of money become richer and buy more. This is one reason why the aggreg

ioda

Answer:

True

Explanation:

The statement is true.

Suppose a consumer purchases a bundle of goods, say 40 units with his given money income of $1000.

Now, if there is a fall in the price level of the goods then this will increase the purchasing power of the consumer and hence he will be able to buy more quantity of goods, say 60 units with the same level of money income i.e $1,000.

This illustrates that as the price level falls, the purchasing power of the consumer increases or we can say that holders of money become richer.

4 0

3 years ago