Colorado Traffic laws are revised each year by

Z best, inc. issued $1,000,000 of common stock for cash. by accident, z best recorded the transaction by increasing cash and dec

kodGreya [7K]

As a result of Z best recording the transaction by increasing cash and decreasing stockholders' equity, the result would be The accounting equation is out of balance, SE is understated, contributed capital is understated,

<h3>What happens when stock is incorrectly recorded?</h3>

When Z Best issued common stock, they should have increased cash and increased stockholders equity.

Because they did not do that, they made the stockholders equity understated and the contributed capital as well. As a result of this, the accounting equation will not balance:

Assets = Equity + Liabilities

The accounting equation will not balance because assets will be more than the sum of equity and liabilities.

Find out more on the accounting equation at brainly.com/question/14236545

#SPJ1

5 0

2 years ago

We run a delivery service, and we believe our firm has market risk equally between that of UPS and FedEx. We know the following

mixer [17]

Answer:

The answer is "0.85 "

Explanation:

In order to locate a beta of the company, we must find the average beta of unlevered UPS and FedEx and find a levered beta of the company.

Price Outstanding shares(Billion) Market valu of equity(Billion) Market value of debt(billions) D/E Ratio

UPS 65 0.7 45.5 5 0.1099

FedEx 55 0.25 13.75 3 0.2182

$Unlevered \ beta= \frac{levered \ beta}{(1+((1- tax rate)\times(\frac{Debt}{Equity})))}$

taxes desn't matter , given in the question so, assumed to be 0

$Unlevered \ beta \ for \ UPS= \frac{0.8}{1+(1-0)\times (0.1099)}$

$= \frac{0.8}{1+(1)\times (0.1099)}\\\\= \frac{0.8}{1+(0.1099)}\\\\= \frac{0.8}{1.1099}\\\\=0.72$

$Unlevered \ beta \ for \ FedEx= \frac{1.1}{1+(1-0)\times (0.2182)}$

$= \frac{1.1}{1+(1)\times (0.2182)}\\\\= \frac{1.1}{1+(0.2182)}\\\\= \frac{1.1}{1.2182}\\\\=0.90$

$Average \ Unlevered \ beta = \frac{0.72+0.90}{2}$

$= \frac{1.62}{2}\\\\=0.81$

$\text{levered beta of the delivery service firm }= unlevered \ beta \times(1+(1-taxes) \times (\frac{debt}{equity}))$

$= 0.81 \times (1+(1-0)\times (\frac{20}{450})\\\\= 0.81 \times (1+(1)\times (0.04)\\\\= 0.81 \times (1+(0.04)\\\\= 0.81 \times (1.04)\\\\=0.85$

4 0

4 years ago

Last year Electric Autos had sales of $100 million and assets at the start of the year of $150 million. If its return on start-o

Alik [6]

Answer:

22.5%

Explanation:

If Electric Autos had a 15% return on start-of-year assets, and its assets at the start of the year were $150 million, the company's total profit is given by:

$P = 0.15*\$150\\P=\$22.5\ million$

If sales amounted to $100 million, the profit margin (M) is determined as:

$M = \frac{\$22.5}{\$100}\\ M=22.5\%$

Electric Autos had a profit margin of 22.5%

5 0

3 years ago

Read 2 more answers

Joel takes out a loan with a stated rate of 11. 85% interest. If the interest is calculated weekly, how much greater is Joelâ€™s

vredina [299]

The effective interest rate is greater by 0.72 percentage points as compared to the nominal interest rates.

Computation:

Given,

$(r)$ Nominal Interest rate =11.85%

$(m)$ compounding period = weekly, that is 52.

The formula of the effective interest rate will be used:

$\begin{aligned}\text{Effective Interest Rate}&=(1+\frac{r}{m})^m-1\\&=(1+\frac{0.1185}{52})^{52}-1\\&=(1.00227)^{52}-1\\&=0.1257\;\text{or}\;12.57\%\end{aligned}$