Answer: See explanation
Explanation:
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.
The first year's net earnings under the cash basis of accounting will be:
Service revenue = $23400
Less: Expenses = $14310
Net income = $9090
The first year's net earnings under the accrual basis of accounting will be:
Service revenue = $29500
Less: Expenses = $15500
Net income = $14000
2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.
Answer:
$19.47
Explanation:
The computation of the price paid for share is shown below:
= Year second dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2.20 + $2.20 × 2.2%
= $2.20 + $0.0484
= $2.2484
In the year 2 , it is
= $2.2484 × 1.022
= $2.2978648
And, the required rate of return is 14%
Plus the growth rate is 2.2%
So, the price paid for the share is
= ( $2.2978648) ÷ (14% - 2.2%)
= $19.47
For the answer to the question which of the following criteria is most descriptive of a private liberal arts college. The answer is multiple choice letter <span>D. Personal attention from instructors in smaller classes.
I hope my answer helped you. Have a nice day!</span>
Heyyyyyy thanks for the points, have a nice day/night wtv :)
This implies that the work would take longer as well, making the product cost more
