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3 years ago

Sources of fund and described

1 answer:

5 0

The main sources of funding are retained earnings, debt capital, and equity capital. Companies use retained earnings from business operations to expand or distribute dividends to their shareholders. Businesses raise funds by borrowing debt privately from a bank or by going public (issuing debt securities).

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Robert sold his Lebec Corporation stock to his sister Karen for $8,000. Robert's cost basis in the stock was $15,000. Karen late

lara [203]

Answer:

$7,500

Explanation:

A few points must be considered in order to calculate ther realized gain.

1. Although Robert's stock in Lebec Corporation was $15,000 at cost, it was sold to Karen (his sister and related party) for $8000. Since it is related party transaction, the loss of $7000 ($15,000-$8,000) cannot be reported as a loss.

2. Karen's basis for the stock is $8000 (the amount she bought it from her brother).

3. Karen sold the stock to Dana for $15,500. The realized gain since Dana is not related is $15,500-$8,000= $7,500. This becomes the realized gain since it is an unrelated party transaction.

7 0

3 years ago

An investment project provides cash inflows of $705 per year for eight years. a. What is the project payback period if the initi

Yuki888 [10]

Answer: A. 2.05 B. 5.10 C. 0

Explanation: Payback period can be defined as the period under which the profits or savings in an investment can recover the initial outlay invested in that investment. In simple words we can say that it is the time required by an investment to pay for itself.

Pay back period is computed as follows :-

$=\:payback\:period=\frac{\:Initial\:cash\:outlay}{cash\:inflows}$

therefore,

A. $=\:payback\:period=\frac{1450}{705}$ =2.05years

B. $=\:payback\:period=\frac{3600}{705}$ =5.10years

C. $=\:payback\:period=\frac{5800}{705}$ =0

7 0

4 years ago

Zira Co. reports the following production budget for the next four months. April May June July Production (units) 642 670 676 65

Liula [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Production (units):

April= 642

May= 670

June= 676

July= 656

Each finished unit requires four pounds of raw materials.

Desired ending inventory= 40% of next month’s production needs.

Beginning raw materials= 1,027 pounds.

Direct materials= $4 per pound.

We need to use the following formula to calculate the purchases:

Purchases= production + desired ending inventory - beginning inventory

April (In pounds):

Production= 642*4= 2,568

Ending inventory= (670*4)*0.4= 1,072

Beginning inventory= (1,027)

Total= 2,613

Total cost= 2,613*4= $10,452

May (In pounds):

Production= 670*4= 2,680

Ending inventory= (676*4)*0.4= 1,082

Beginning inventory= (1,072)

Total= 2,690

Total cost= 2,690*4= $10,760

June (In pounds):

Production= 676*4= 2,704

Ending inventory= (656*4)*0.4= 1,050

Beginning inventory= (1,082)

Total= 2,672

Total cost= 2,672*4= $10,688

8 0

3 years ago

Singh has found that he needs increasing amounts of alcohol to have the desired effect. In other words, Singh has developed a(n

Dima020 [189]

Singh has developed a dependency for alcohol.

8 0

3 years ago

When some countries increase their imports as a result of worldwide economic growth, other countries must be increasing their:__

lora16 [44]

Answer:

export

Explanation:

Import is when goods and services are brought into a country from another country.

If people are buying goods from another country, a country must be selling it to them. The country selling these goods are exporting them.

Export is when a country sells goods to another country.

For example, if US buys cars from Germany. US is importing the cars while Germany is exporting the cars

4 0

4 years ago

Sources of fund and described​

Sources of fund and described