Answer:
Cash and cash equivalents = $20,217
Explanation:
Larkspur Company
Cash and Cash Equivalent
Transaction No. Particulars $
1. Petty Cash Fund 52
2. Treasury Bill 10,200
3. Deposit-In-Transit 255
Cash-in-Bank:
5. Checking account 3,360
6. Savings account 6,350
Total Cash & Cash Equivalent 20,217
Transaction #4. Since it did not post during April, therefore, it could not be a cash item.
Transaction #7. It is an expense.
Transaction #8. IOU is a receivable.
B is the correct answer because specialization of labor will result in higher productivity, which means each worker gives higher output each hour
Answer:
$30,000
Explanation:
Usually, patents do not have a salvage value. If the useful life is 16 years, the amortization rate will be 1/16 x 100
=0.0625 x 100
=6.25%
Before January 2017, the trademark had been amortized for four years ( 2013, 2014, 2015, and 2016.)
Amortization per year = 6.25% x $400,000
=0.0625 x $400,000
=$25,000 per year: Four year amortization would be
=$25,000 x 4
=$100,000
The Book value as of January 2017 will be
=$400,000 -$100,000
=$300,000
add legal fee
=$300,000 + $60,000
=$360,000
remaining useful life = 16 -4 years = 12 years.
new depreciation rate = 1/12 x 100
=0.08333
Depreciation amount for 2017
= 0.08333 x $360,000
=$30,000
Answer:
D) $62.57
Explanation:
One should be willing to pay the intrinsic value or fair price, computed using the present value of dividends
Intrinsic value or fair Price = 2.3/1.14 + 2.645/1.14^2 + 3.04/1.14^3 + (3.04*(1+10%)/(14%-10%))/1.14^3
= $62.57
Therefore, You should be willing to pay $62.57 for this stock.
