Answer:
(A) $3,200.
Explanation:
cost 600 replacement cost = market cost = 400
lower market 400
8 computers x 400 = 3,200
<u>Notice:</u> Under the lower-of-cost-or-market we can only recognize impairment. We cannot increase the value of assets under this method.
Answer:
a. The value of shareholder's equity account for this firm is $16,600.
b. The net working capital for Wims Inc. is $1,500.
a. We start off by looking at the Accounting Identity:
Since
and
We can rewrite this accounting identity as follows:
----- (1)
Plugging in the values from the question in (1) above we get,
b. The formula for Net Working Capital is:
A franchise fits the description of Sam's Club
Answer D
Answer:
The journal entry for the issuance of the preferred stock is shown below:
Explanation:
Cash A/c..................................................Dr $30,000
Preference Stock A/c....................................Cr $10
Paid in Capital in excess of Par A/c...........Cr $29,990
Working Note:
Cash = Shares × Issued price per share
where
Shares are 1,000
Issued Price per share is $30
= 1,000 × $30
= $30,000
Preference Stock = Shares × Par price
= 1,000 × $0.01
=$ 10
Paid in Capital in excess of Par = Cash - Preference stock
= $30,000 - $10
= $29,990
Answer:
See below
Explanation:
•Crew Cut's operating cash flow was;
Operating cash flow = EBIT - Taxes + Depreciation
= $23.18 million - $3.82 million + $7.82 million
= $27.18 million
• Investment in operating capital for 2018
Investment in operating capital = Change in gross fixed assets + Change in net working capital
= $10.18 million + ($6.18 million - $3.82 million)
= $10.18 million + $2.36 million
= $12.54 million
• Free cash flow for 2018
Free cash flow = Operating cash flow - Investment in operating capital
= $27.18 million - $12.54 million
= $14.64 million