You decide to change careers and have assessed your values, interests, and skills. What should you do next?

Bank Reconciliation

Karo-lina-s [1.5K]

Answer:

Cash balance according to the bank $23,557.98

+ deposits in transit $12,125.25

- outstanding check N⁰ 124 ($62)

- outstanding check N⁰ 125 ($42)

- outstanding check N⁰ 129 ($1,250)

adjusted bank balance = $34,329.23

Cash account balance $51,596.88

+ note collected by bank $15,250.75

- NSF check ($23,475.40)

- Bank fees ($250)

- Error in recording check N⁰ 125 ($9,000)

adjusted cash account balance = $34,122.23

two errors were detected:

outstanding check N⁰ 125 correct amount is ($24)
bank fees are $25

so the readjusted balances are:

adjusted bank balance = $34,329.23 + ($42 - $24) = $34,347.23

adjusted cash account balance = $34,122.23 + ($250 - $25) = $34,347.23

now both accounts are equal.

5 0

3 years ago

River Enterprises has $502 million in debt and 22 million shares of equity outstanding. Its excess cash reserves are $ 15 milli

Sedbober [7]

Answer:

The stock price would be higher by $7.37

Explanation:

Free cash flow to equity = 195 million with a growth rate of 2% in perpetuity

Value of equity = Free cash flow to equity ÷ (Ce -g) = 195 million ÷ (13% - 2%)

= 190 ÷ 0.11 = $1,772,727,272.73 = $1,773 million

If growth rate is 3%, value of equity = 195 ÷ (13%-3%) = 195 ÷ 0.1 = $1,950 million

a. Value of stock = (1,773 + 15) million ÷ 22 = $81.27

b. Value of stock with 3% = 1,950 ÷ 22 = $88.64

Thus stock price would be higher by = b-a = $7.37

4 0

3 years ago

Some recent financial statements for Smolira Golf Corp. follow:

nalin [4]

Answer:

1. The company's profit margin is 13.4% percent.

profit margin = net income / net sales = $45,064 / $336,329 = 13.4%

2. The total asset turnover is 0.82 times.

asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82

3. The equity multiplier is 1.7 times.

equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70

4. Using the Du Pont Identity, the company's ROE is 18.68% percent.

ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%

4 0

3 years ago

The types of milatary are safe

goblinko [34]

Answer: US Air Force and Navy

Explanation:

8 0

3 years ago

Hart Attorney at Law experienced the follwoing transactions in 2016, the first year of operations:

sertanlavr [38]

Answer:

Assets = Liabilities + Stockholders’ Equity = $51,800

Explanation:

Note: See the attached excel file for the the effects of the events on the financial statements.

In the attached excel the following calculations are made:

Event 7: Office supplies = Office supplies used or expense = Office supplies purchased - Office supplies remained on hand = $2,800 - $200 = $2,600

Event 8 = Revenue recognised = (Amount accepted on April 1 / Number of months in year) * Number of months from April 1 to Decembe 31 = ($36,000 / 12) * 9 = $27,000

From the attached excel file, the following can be obtained:

Assets = Total assets = $51,600 + $200 = $51,800

Liabilities = Total liabilities = $400 + $9,000 = $9,400

Stockholders’ Equity = Total Stockholders’ Equity = $42,400

Liabilities + Stockholders’ Equity = $9,400 + $42,400 = $51,800

Therefore, the accounting equation holds as follows:

Assets = Liabilities + Stockholders’ Equity = $51,800

Download xlsx

8 0

2 years ago