Answer:
cash dividends: 3,000
Explanation:
We can solve for cash dividends based on how the equity method works:
Beginning investing
+ proportional net income
<u>- cash dividends received </u>
Ending investing
beginning + inomce - dividends = ending
10,000 + 4,000 - cash dividends = 11,000
cash dividends= 14,000 - 11,000
cash dividends = 3,000
when received, the journal entry for the dividends was as follow:
cash 3,000 debit
investing 3,000 credit
to record cash received from investment
Answer:
Prizes and toys in a cereal box as rewards for purchasing the cereal are examples of PREMIUMS
Answer:
1. Calculate the NPV for each option available for the project. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567.)
- go to market now = $744,000
- focus group = $852,000
- consulting firm = $916,000
2. Which action should the firm undertake?
The NPV is higher than the rst of the options.
Explanation:
expected payoffs:
- option 1 (go to market now) = (40% x $1.86 million) + 0 = $744,000
- option 2 (focus group) = (55% x $1.86 million) + 0 = $1,023,000
- option 3 (consulting firm) = (70% x $1.86 million) + 0 = $1,302,000
expected NPVs:
- option 1 (go to market now) = $744,000
- option 2 (focus group) = $1,023,000 - $171,000 = $852,000
- option 3 (consulting firm) = $1,302,000 - $386,000 = $916,000
go to market now
Answer:
Annual depreciation= $28,940
Explanation:
Giving the following information:
Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,150 at the end of five years.
Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]
Annual depreciation= 2* [(78,500 - 6,150)/5]= $28,940
