Answer and explanation:
The Annual Rate of Return or Yearly Rate of Return is the amount of money obtained in the course of an investment over one year. It is usually defined as a percentage and takes into account capital appreciation and dividend payments. The formula for calculating the annual rate of return is:
Annual Rate of Return = (EYP - BYP)/BYP X 100%
Where:
EYP = End of year price
BYP = Beginning of year price
Answer:
The maximum number of shares is 5,000 shares
Explanation:
The computation of the maximum number of shares is shown below:
= Margin account amount ÷ initial margin deposit required ÷ current selling price per share
= $150,000 ÷ 0.60 ÷ $50 per share
= 5,000 shares
hence, the maximum number of shares is 5,000 shares
We simply applied the above formula so that accurate shares could come
Answer:
The answer is A, assets will be understated.
Explanation:
When a purchase is registered, it must be like this:
+credit for the supplies
+debit for the liability, or -credit for the cash used
If the registration of the asset is not made, then the assets will be understated and the accounting equation does not balance, because the liability or the -credit of asset cash has been registered.
Understated means two things, the amount is not the correct amount, and the amount is less than the true amount. In other words, the amount is too small.
Answer:
1. Yes. Cash flows are able to illustrate liquidity.
2. Recommendations
a. Reducing levels of Inventory.
b. Negotiating Longer credit settlement period with suppliers.
Explanation:
One of the uses of a Cash flow Statement is its use in negotiating loans with bank and other lenders. Of interest to these parties is the liquidity of the entity.
Liquidity is the ability of an entity to honor its short-term obligations using its current assets. Liquidity is reflected in the Cash flow from Operating Activities of the Cash flow Statement.
<u>Recommendation</u>
Companies can maintain liquidity through reducing levels of inventory. Inventory ties up cash. Negotiating longer credit settlement period with suppliers can also increase liquidity.
The answer is 4,075, because 2,500 x .63 is 1,575, and that added to 2,500 is 4,075