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hjlf
3 years ago
12

Find below the financial statements for Kenning Corp. Income Statement Balance Sheet Sales $5,000 Assets $14,800 Debt $11,000 Co

sts 3,410 Equity 3,800 Net income $1,590 Total $14,800 Total $14,800 Assume no income taxes. Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid and next year's sales are projected to be $5,970. What is the EFN?
Business
1 answer:
steposvetlana [31]3 years ago
4 0

Answer: $972.74

Explanation:

From the information given, the external finance is calculated thus:

Sales growth = ($5970 - $5000) / $5000 × 100 = $970/$5000 × 100 = 19.4%

Then, we calculate the net income which will be:

= Sales - Cost

= $5970 - ($3410 × 1.194)

= $5970 - $4071.54

= $1898.46

Total asset = $14800 × 1.194 = $17671.20

Total equity = $3800 + $1898.46 = $5698.46

External financing needed:

= Total assets - Total equity - Debt

= $17671.20 - $5698.46 - $11,000

= $972.74

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Pun Corporation concluded the fair value of Slender Company was $60,000 and paid that amount to acquire its net assets. Slender
Lady_Fox [76]

Answer:

Investment on Slender    51,000

Goodwill                             9,000

fees expense                     4,000

            Cash                                  64,000

Explanation:

fair value of Slender:

71,000 - 20,000 = 51,000

purchase price      60,000

goodwil                   9,000

finder's fees           4,000

It will recognize the goodwill for Slender

it will pay the finder's and recognize them as expense

The total cash will be 60,000 to aquire Slender and the 4,000 finder's expense

3 0
3 years ago
opportunities that allow students to give back to their community and that have a set of learning objectives attached are know a
Mice21 [21]

Answer:

Service-learning opportunities

Explanation:

Service-learning is the learning which is referred to the learning which  actively comprise the students in a wide range of experiences and it often advantage others as well as the community.

Therefore, the opportunities which allow the students to give back to the community and the set of learning goals which are attached is known as the service-learning opportunities.

6 0
3 years ago
Beautiful Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follo
mr_godi [17]

Answer:

Option (A) is the correct answer to this question.

Explanation:

The cessation of the Sporty line would forfeit the profits produced by the Sporty line business, but the business (Beautiful Watches) will have to bear the $38,000 fixed expenses involved by Spotify Watches.

However, if production continued, the Sporty watches would have suffered a loss of $32,000. The company will bear fixed costs regardless of whether the company continues or discontinues the Sporty line market.

Accordingly, the gross operating profits should have been

= Total operating expenses -  ( $ 38000 - $ 32000)  

= $ 55000 - ( $ 38000 - $ 32000)

= $ 55000 - $ 6000

= $ 49000

There is also a fall of $6000 ($55000-$49000) in operating profits.

Other options are incorrect because they are not related to the given scenario.

7 0
3 years ago
After alistair earned his ba, he had to decide whether to accept the offer of a job that will pay him $45,000 per year or spend
guapka [62]

Answer:

$77,500

Explanation:

The computation of the annual opportunity cost of earning his mba is shown below:

= Cost of the job + cost of other expenses + the interest earned per year

= $45,000 + $22,000 + $500

= $77,500

In order to determine we added the cost of the job, cost of other expenses, and the interest earned per year so that the annual opportunity cost could arrive

8 0
3 years ago
Assume you borrowed $100,000 at a fixed rate of 7 percent for 30 years to purchase a house. If the inflation rate is 3 percent,
nikitadnepr [17]

Answer:

(A) less

Explanation:

Given a positive inflation rate, the real value of the dollar will depreciate by the rate of inflation annually.

Thus, for a house that cost $100,000 today, given a 3% inflation rate, it would cost (100,000 * 1.03 = ) $103,000 after a year.

This means, $100,000 today will have the same value as $103,000 one year later.

Therefore, repayments, which will likely be a fixed sum every year, will have a lower purchasing power as the year progresses.

6 0
3 years ago
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