All categories

3 years ago

This information relates to Wildhorse Co..

Business

1 answer:

noname [10]3 years ago

4 0

Answer:

Wildhorse Co.’s books

Perpetual Inventory System

Date Account Dr. Cr

5 April Merchandise Inventory $28,200

Accounts/ Notes Payable $28200

Purchased merchandise from Carla Vista Company for $28,200, terms 2/10, n/30.

6 April Freight Charges $ 710

Cash $ 710

Paid freight costs of $710

7 April Equipment $ 33200

Accounts Payable $ 33,200

Purchased equipment on account for $33,200.

8 April Accounts Payable $3800

Merchandise Inventory $ 3800

Returned $3,800 of April 5 merchandise

15 April Accounts Payable $ 24,400

Purchases Discount 488

Cash $ 23,912

Paid the amount due ($28,200- $3800= $24,400)

2% of $ 24,400= $ 488

b. Payment of balance due on May 4 instead of Apr 5

4 May Accounts Payable $ 24,400

Cash $ 24,400

You might be interested in

Steinberg Corporation and Dietrich Corporation are identical companies except that Dietrich is more levered. Both companies will

AveGali [126]

Answer:

Explanation:

he total value of a firm’s equity is the discounted expected cash flow to the firm’s shareholders. If the expansion [in the economy] continues, each firm will generate EBIT of $4 million, but the firm is also obligated to pay interest of $940,000. If a recession occurs, Steinberg will have an EBIT of $1,400,000 but still have to pay $1,500,000 in interest to bondholders. Therefore, assuming a discount rate of 15%, the market value of Steinberg’s equity will be:

ESteinberg = [(.70)($4,000,000 - $940,000) + (.30)($1,400,000 - $940,000)]/1.15

ESteinberg = $1,982,609

Steinberg’s bondholders will receive $940,000 whether there is a recession or expansion in the economy. So, the market value of Steinberg’s debt is: DSteinberg = {(.70)[$940,000] + (.3)[$940,000]}/1.15 = $817,391

Since Dietrich owes its bondholders $1.5 million at the end of the year, its shareholders will receive $ million [i.e., $4 million - $1.5 million] in the event of expansion. If there is a recession, its shareholders receive nothing because the EBIT of $1.4 million is less than the interest payment of $1.5 million. Therefore, the market value of Dietrich’s equity will be: EDeitrich = {(.70)[$1.5 million} + (.3)[0]}/1.15 = $913,043 Dietrich’s bondholders will receive $1.5 million if the expansion continues, but only $1.4million if there is a recession [i.e., they take a $100,000 loss].

DDeitrich = { (.70)[$1.5 million] + (.3)[$1.4million]}/1.15 = $1,278,261

The value of Steinberg is: VSteinberg = D + E = $2,800,000

The value of Deitrich is: VDeitrich = D + E = $834,783 + $695,652 = $2,191,304

Agreed

8 0

3 years ago

Indicate whether each of the following cash activities would be reported on the statement of cash flows as (a) an operating acti

Tasya [4]

Answer:

Given list of cash activities is divided among operating activities, financing activities and investing activities in the explanation section.

Explanation:

Paid for Advertising Operating Activity
Paid for Office Equipment Investing Activity
Issued Capital Stock Financing Activity
Paid officers salaries Operating Activity
Sold services Operating Activity
Paid rent : Operating Activity
Paid dividends: Financing Activity
Issued a note payable: Financing Activity
Paid rent: Operating Activity
Sold excess office equipment: Investing Activity

Operating Activities include cash generated from operations, Interest Paid and Tax Paid.

Investing Activities include payment to acquire or proceeds from sale of property, plant and equipment, proceeds from government grants, interest and dividend received.

Financing Activities include proceeds from issue of shares, proceeds from long term borrowings, dividends paid etc.

4 0

3 years ago

What factors of production will go into making the item

lukranit [14]

Production Capital, Human Capital, Resource Capital, and Intellectual Capital...
Let me know if you need to know what those are :)

6 0

3 years ago

Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. I

Lapatulllka [165]

Answer:

Mike's Motors Corp.

Cash Budget

July August September

Beginning balance $41,000 $30,000 $30,000

Cash receipts 92,000 118,000 157,000

Total cash available $133,000 $148,000 $187,000

Cash payments 120,000 106,900 134,400

Interest/Loan repayment 11,100 6,602

Cash balance 13,000 30,000 45,998

Cash to borrow 17,000 0 0

Minimum cash balance $30,000 $30,000 $30,000

Explanation:

a) Data and Calculations:

Minimum cash balance = $30,000

Interest rate on borrowings = 3% per month

Beginning cash balance = $41,000

Cash Budget

July August September

Beginning balance $41,000 $30,000 $30,000

Cash receipts 92,000 118,000 157,000

Total cash available $133,000 $148,000 $187,000

Cash payments 120,000 106,900 134,400

Interest/Loan repayment 11,100 6,602

Cash balance 13,000 30,000 45,998

Cash to borrow 17,000 0 0

Minimum cash balance 30,000 30,000 30,000

Loan repayment:

In August:

Interest is paid = $510 ($17,000 * 3%)

Loan is repaid = 10,590

Total paid = $11,100

Balance of loan unpaid = $6,410 ($17,000 - 10,590)

In September:

Interest on loan = $192 ($6,410 * 3%)

Loan repaid = 6,602 ($6,410 + 192)

6 0

2 years ago

In a perfectly competitive market, Multiple Choice all firms produce and sell a standardized or undifferentiated product. the ou

Umnica [9.8K]

Answer:

all firms produce and sell a standardized or undifferentiated product

Explanation:

A perfectly competitive market is a market in which there are many companies that offer the same product, there are not entry barriers which makes it easy for an organization to enter or exit the market. Also, the companies are not able to influence the market and they are not able to control the conditions in it. According to this, the answer is that in a perfectly competitive market, all firms produce and sell a standardized or undifferentiated product.

6 0

3 years ago