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almond37 [142]
3 years ago
14

Assets = liabilities + owners' equity is the equation for information reported on the

Business
1 answer:
Advocard [28]3 years ago
3 0
<span>Assets = liabilities + owners' equity is the equation for information reported on the: Balance sheet

In accounting, balance basically represents a brief overview about what the company currently own.
Assets represent something valuable that the company own to conduct their operation, Liabilities represent the debt that they have to pay to other individual or entities, And owner equity represents how much ownership one person have from all the things that the company owns.</span>
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Accompanying a bank statement for Marsh Land Properties is a credit memo for payment on a $15,000 one-year note receivable and $
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Answer:

Explanation:

The  journal entry is shown below:

Cash A/c Dr 15,900

To Notes Receivable A/c $15,000

To  Interest Revenue A/c $900

(Being cash is collected with respect of notes receivable and interest revenue)

For recording this transaction, we debited the cash account and credited the notes receivable and interest revenue account

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3 years ago
Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, wha
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Complete question:

WACC Estimation

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $20 million in new projects. The firm's present market value capital structure, here below, is considered to be optimal. There is no short-term debt.

Debt $30,000,000

Common equity 30,000,000

Total capital $60,000,000

 New bonds will have an 7% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 40%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Enter your answer in dollars. For example, $1.2 million should be entered as $1200000.

$  

2. Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places.

%

3. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? No numbers are required to answer this question.

I. rs will increase and the WACC will decrease due to the flotation costs of new equity.

II. rs will decrease and the WACC will increase due to the flotation costs of new equity.

III. rs and the WACC will not be affected by flotation costs of new equity.

IV. rs and the WACC will increase due to the flotation costs of new equity.

V. rs and the WACC will decrease due to the flotation costs of new equity.

-Select- one above IIIIIIIVV

Answer:

The answer is III.

rs and the WACC will increase due to the flotation costs of new equity.

Solution:

It is given that,

Equity is $30,000,000.

Debt is $30,000,000.

The amount of fund raised is $20,000,000.

The formula to calculate weight of equity is given below:

Weight of equity = \frac{Equity}{Equity+Debt}

Substitute $30,000,000 for equity and $30,000,000 for debt in the formula,

Weight of equity = \frac{30,000,000}{30,000,000 + 30,000,000}

                         = 50%

Since weight of equity is 50% and to maintain this capital structure, company should finance the 50% of funds

Amount financed by common equity = $20,000,000 * 50%

                                                             =  $10,000,000

7 0
3 years ago
The following amounts were reported by Burke Company before adjusting its immaterial overapplied manufacturing overhead of $8,00
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Answer:$722,000

Explanation:

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3 years ago
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Answer:

B) Norming

Explanation:

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At this stage, there is an increase in the identification of the role of each member and their goal in a team. There is a decrease in previous conflicts and an increase in group identity, which helps to develop tasks more effectively and jointly, where each member has a well-defined responsibility and the leader has the essential role of regulating the group and assisting in the development the responsibilities of each one, which will lead to effectiveness in achieving the team's objectives.

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3 years ago
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