Answer and Explanation:
The computation of the cost od merchandised sold for each sale and the inventory balance after each sale is presented in the attachment below;
The perpetual inventory is the system which updated the inventory as on a regular basis
While on the other hand, the weighted average cost method is the method in which the average cost is calculated after each every purchase is made
In the calculation below:
1. The weighted average cost of $30.90 come from
= (Total inventory cost) ÷ (Total quantity)
= ($180,000 + $1,674,000) ÷ (60,000 units)
= $30.90
1. The weighted average cost of $31.60 come from
= (Total inventory cost) ÷ (Total quantity)
= ($463,500 + $674,100) ÷ (36,000 units)
= $31.60
Answer:
Net income: $
Revenue 140,000
Expenses (50,000)
Dividend paid <u> (70,000)</u>
Net income <u> </u><u>20,000</u><u> </u>
Net income is the amount of increase in stockholders' equity.
Explanation:
Net income is the excess of revenue over expenses and dividend. A positive net income increases the stockholders' equity. Common stockholders are legal owners of a company, thus, any income not distributed as dividend increases their equity.
Answer:
$19,708,745
Explanation:
We first have to calculate the present value of the bonds:
Nper = 20 (10 years x 2 payments per year)
R = 11% / 2 = 5.5%
Payment = 83 / 2 = 41.50
Future value = 1,000
PV = ?
To calculate the present value we can use an excel spreadsheet and the present value function =PV(5.5%,20,41.5,1000) = $838.67
Now we calculate how many bonds were issued = $23,500,000 / $1,000 = 23,500 bonds.
To determine the market value of the debt outstanding we multiply the present value of the bonds times the total number of bonds outstanding
= $838.67 x 23,500 = $19,708,745
Answer:
the real rate of interest of 6.39 %
Explanation:
given,
rate of return on your bond = 11.29 %
the inflation rate = 4.6 %
real rate of return = ?
rate of return = 
rate of return = 
rate of return =
rate of return = 
= 6.39 %
the real rate of interest of 6.39 %
