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Svetllana [295]
3 years ago
13

Based on the given information, what will be the working capital of the company?

Business
1 answer:
Romashka-Z-Leto [24]3 years ago
7 0

Answer:

$37,000

Explanation:

Working capital indicates the difference between a company's current assets and its current liabilities.

Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.

in this case,

Current assets include

Inventory    $50,000

Cash at Bank    $ 5,000

prepaid rent    <u>  $5,000</u>

Total current assets <u>$60,000</u>

current liabilities

Notes Payable   $20,000

tax payable       <u>   $3,000</u>

Total current liabilities  <u>   $23,000</u>

Working capital

= $60,000 - $23,000

= $37,000

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Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balan
ser-zykov [4K]

Answer:

A) Entering the January 1 Balances in T-Accounts for ther Stockholders Equity Accounts Listed:

                                               Common Stock

                Jan. 1 Bal.                         $7,340,000

                  Apr. 10                                 $1,420,000

                   Aug. 15                         $262,800

                   Dec. 31 Bal                         $9,022,800

          Paid-In Capital in Excess of Stated Value - Common Stock

                         Jan. 1 Bal.            $844,100

                            Apr. 10            $213,000

                             July 5             $78,840

                         Dec. 31 Bal            $1,135,940

                                                Retained Earnings

     Dec 31                $379,723     Jan. 1 Bal.     $33,388,000

                                                            Dec 31    $1,131,500

                                                           Dec. 31 Bal     $34,519,500

                                                  Treasury Stock

Jan. 1 Bal.         $341,640           June 6 $341,640

Nov 23                 $504,000  

Dec. 31 Bal         $504,000  

                  Paid-In Capital from Sale of Treasury Stock

                                 June 6                 $228,000

                                   Stock Dividends Distributable

Aug 15                     $262,800        July 5 $262,800

                                    Stock Dividends

July 5                     $341,640        Dec 31 $341,640

                                    Cash Dividends

Dec 28                    $38,083              Dec 31                         $38,083

B) Preparing the Journal Entries to Record the Transactions:

Date             General Journal                     Debit              Credit

Jan 22 Cash Dividends Payable

           [(367,000 shares - 22,800 shares) * $0.09]                       $30,978  

                                 Cash                                                         $30,978

-Look below for more explanation

Explanation:

A) Entering the January 1 Balances in T-Accounts for ther Stockholders Equity Accounts Listed:

                                               Common Stock

                Jan. 1 Bal.                         $7,340,000

                  Apr. 10                                 $1,420,000

                   Aug. 15                         $262,800

                   Dec. 31 Bal                         $9,022,800

          Paid-In Capital in Excess of Stated Value - Common Stock

                         Jan. 1 Bal.            $844,100

                            Apr. 10            $213,000

                             July 5             $78,840

                         Dec. 31 Bal            $1,135,940

                                                Retained Earnings

     Dec 31                $379,723     Jan. 1 Bal.     $33,388,000

                                                            Dec 31    $1,131,500

                                                           Dec. 31 Bal     $34,519,500

                                                  Treasury Stock

Jan. 1 Bal.         $341,640           June 6 $341,640

Nov 23                 $504,000  

Dec. 31 Bal         $504,000  

                  Paid-In Capital from Sale of Treasury Stock

                                 June 6                 $228,000

                                   Stock Dividends Distributable

Aug 15                     $262,800        July 5 $262,800

                                    Stock Dividends

July 5                     $341,640        Dec 31 $341,640

                                    Cash Dividends

Dec 28                    $38,083              Dec 31                         $38,083

B) Preparing the Journal Entries to Record the Transactions:

Date             General Journal                     Debit              Credit

Jan 22 Cash Dividends Payable

           [(367,000 shares - 22,800 shares) * $0.09]                       $30,978  

                                 Cash                                                         $30,978

Apr 10            Cash (71,000 shares * $23)        $1,633,000  

                            Common Stock                                             $1,420,000

                       (71,000 shares * $20)

                  Paid-In Capital in Excess                                               $213,000

            of Stated Value - Common Stock  

                  [71,000 shares à ($23 - $20)]

June 6     Cash (22,800 shares * $27)                $615,600  

                   Treasury Stock (22,800 shares * $17)                        $387,600                                        

                        Paid-In Capital from Sale of

                 Treasury Stock [22,800 shares * ($27 - $17)]     $228,000

July 5 Stock Dividends [(367,000                     $341,640

              shares + 71,000 shares) * 3% * $26]

Stock Dividends Distributable (13,140 shares * $20)                 $262,800

                   Paid-In Capital in Excess of Stated

            Value Common Stock [13,140 shares * ($26 - $20)]  $78,840

Aug 15                 Stock Dividends Distributable $262,800  

                                          Common Stock                                $262,800

Nov 23         Treasury Stock (28,000 shares * $18)    $504,000  

                                            Cash                                              $504,000

Dec 28           Cash Dividends [(367,000 shares

                         + 71,000 shares + 13,140                   $38,083  

                         shares - 28,000 shares) * $0.09]

                                 Cash Dividends Payable  $38,083

Dec 31                     Income Summary               $1,131,500  

                                         Retained Earnings                        $1,131,500

Dec 31                        Retained Earnings               $379,723  

                                         Stock Dividends                                $341,640

                                             Cash Dividends                         $38,083

C) Preparing a Retained Earnings Statement for the Year Ended December 31, 2015:

                                 MORROW ENTERPRISES INC.

                                 Retained Earnings Statement

                           For the Year Ended December 31, 2015

Retained earnings, January 1, 2015                                   $33,388,000

         Net Income                                             $1,131,500  

          Less: Cash dividends                          ($38,083)  

Stock dividends                                               ($341,640)  

Increase in retained earnings                                                   $751,777

Retained earnings, December 31, 2015                             $34,139,777

D) Preparing the Stockholder's Equity Section of the December 31, 2015, Balance Sheet:

                                          Stockholdersâ Equity

Paid-in capital:  

Common stock, $20 stated value

(500,000 shares authorized, 451,140                 $9,022,800

shares issued)

Excess of issue price over stated value         $1,135,940  

From sale of treasury stock                              $228,000  

Total paid-in capital                                                             $10,386,740

Retained earnings                                                                     $34,139,777

Total                                                                                    $44,526,517

Deduct treasury stock 28,000 shares at cost)  $504,000

Total stockholdersâ equity  $44,022,517

5 0
3 years ago
Oberholser, Inc., has an issue of preferred stock outstanding that pays a dividend of $3.15 every year in perpetuity. If this is
zepelin [54]

The required rate of return is $3.42%

<h3>What is Perpetuity?</h3>

A constant cash flow with indefinite period of time is called perpetuity. In this question a perpetual payment of dividend is being made. so the price of the share is calculated by the formula of perpetuity.

<u>Given:</u>

Present value of perpetuity =  $92 per share

Cash flows = $3.15 every year

<u>Find:</u>

Rate of return can be calculated from the perpetuity formula

Present value of perpetuity = Cash flows / Required rate of return

Present value of perpetuity = Cash flows / Required rate of return

                                        $92 = $3.15 / Required rate of return

Required rate of return = $3.15 / $92

                                       = 0.0342

                                       = $ 3.42%

Therefore the Required return for Oberholser, Inc will be 3.42%.

Learn more about Required return on:

brainly.com/question/13941905

#SPJ4

6 0
2 years ago
g The Investment Trust Fund for Watson County had the following transactions and events during the calendar year 2022: 1. The ci
sergeinik [125]

The Journal Entries recording the transactions for Investment Trust Fund by Watson County are as follows:

Journal Entries for 2022:

1. Debit Cash $250,000

Credit Contributions, Turtle Creek $150,000

Credit Contributions, Pineview $100,000

To record the contributions by the two cities to the Investment Trust Fund.

2. Debit Investments $187,500

Credit Cash $187,500

To record the purchase of investments.

3. Debit Cash $20,000

Credit Interest Income from Investments $20,000

To record interest income received from investments during the year.

4. Debit Investment Management Fees (Watson County) $3,750

Credit Cash $3,750

To record the payment of management fees to the county.

5. Debit Investments $7,500

Credit Fair Value Gain $7,500

To record the increase in value of investments.

6. Debit Turtle Creek & Pineview Cities $25,000

Credit Cash $25,000

To record the payment of income to the two cities.

Data Analysis:

1. Cash $250,000 Contributions, Turtle Creek $150,000 Contributions, Pineview $100,000

2. Investments $187,500 Cash $187,500

3. Cash $20,000 Interest Income from Investments $20,000

4. Investment Management Fees (Watson County) $3,750 Cash $3,750

5. Investments $7,500 Fair Value Gain $7,500

6.  Turtle Creek & Pineview Cities $25,000 Cash $25,000

Thus, the journal entries above record the transactions and events that occurred for the Investment Trust Fund of Watson County for the two cities of Turtle Creek and Pineview for the year 2022.

Read more about recording Investment Trust Fund transactions at brainly.com/question/15088437

5 0
2 years ago
A company makes travel umbrellas. Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas per week is
Lady_Fox [76]

Answer:

Break-even point in units= 93 units

Explanation:

Giving the following information:

Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas per week are $500 for 2000 units.

After doing market research, the company sets the price per umbrella at $11.

Unitary variable cost= 500/2,000= $0.25

To calculate the break-even point in units, we  need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 1,000/ (11 - 0.25)

Break-even point in units= 93 units

3 0
3 years ago
Suppose market forces outside of the control of the Chinese government are causing the price of Chinese yuan in terms of Japanes
pochemuha

Answer:

A. file a pegging application with one of the three international currency-management agencies.

8 0
3 years ago
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