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2 years ago

Steven puts aside some of his money for future use. He is a _____ .

Business

2 answers:

Nana76 [90]2 years ago

8 0

A) saver
this is the correct answer.

gavmur [86]2 years ago

4 0

The answer is A, a saver.

He is putting money aside for later instead of spending it on anything else

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Concord Corporation reported net income of $177,200 for 2017. Concord Corporation also reported depreciation expense of $35,230

klio [65]

Answer

Net income 177,200

+35230 depreciation

+4,920 loss on disposal

217,350 adjusted net income (a)

↑↓

↑AR -14,160

↑Prepaid -4,190

↑AP 17,220

Change in working Capital -1,130(b)

Cash Flow generated from operating activities 216,220

Explanation:

(a) we must remove the non-monetary account from the income statement

This means add the non-monetary expenses and losses

Subtract the non monetary revenue and gains

(b)

The increase in assets account have a negative meaning, because it is assumed the company used cash to adquire it.

Whiel increase in liabilities are positive, because the company receive aah or delay the payment of cash.

4 0

2 years ago

The following information is from the materials requisitions and time tickets for Job 9-1005 completed by Great Bay Boats. The r

Nata [24]

Answer:

Total cost for Job 9-1005 = $ 5,085

Explanation:

Calculation for total cost for Job 9-1005

Direct materials

Q-4698 $1,250

Q-4725 $1,000

Total Direct material cost = $ 2,250

Direct labor

W-3393 $ 600

W-3479 $ 450

W-3559 $ 300

Total direct labour Cost = $ 1,350

add: Overhead cost 110% of total direct labor cost: $1,350×110%= $1,485

Total Cost on Job is: $2,250+$1,350+$1,485 = $5,085

5 0

2 years ago

To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an insurance company for $

Ganezh [65]

Answer:

North American Courier Corporation

1. Appropriate Entries:

Jan. 1, 2021:

Debit Cash Account $503,000

Credit Building $500,000

Credit Gain on Sale-Leaseback $3,000

To derecognize the asset and recognize the gain on the sale-leaseback.

Dec. 31, 2021:

Debit Lease Rental $89,023

Credit Cash Account $89,023

To account for the lease rental for the year.

Note: This treatment is in accordance with ASC 842 and not IFRS 16, which has withdrawn the concepts of operating and finance (capital) leases. The treatment under IFRS 16 is quite different.

Explanation:

A transaction qualifies for sale and leaseback accounting under ASC 840 when an entity has determined if the transfer of the underlying asset meets the definition of a sale under ASC 606 Revenue from Contracts with Customers. The two key criteria which can be used by an entity to determine this, are as follows:

1. Does a contract exists; and

2. Has control of the asset been transferred?

We believe that the criteria are met. Since this transaction qualifies for sale and leaseback accounting under the old ASC 840, the accounting for the Seller-lessee (North American Courier Corporation) is:

1. Recognize transaction price (determined under ASC 606) when buyer-lessor obtains control, adjusted for any off-market terms

2. Derecognize the carrying amount of the underlying asset

3. Recognize gain or loss in full, subject to any off-market terms

4. Account for the (operating) lease in accordance with ASC 840.

8 0

2 years ago

The market value of Fords' equity, preferred stock and debt are $ 6 billion, $ 2 billion, and $ 12 billion, respectively. Fo

aniked [119]

Answer:

10.12 %

Explanation:

Weighted Average Cost of Capital (WACC) is the cost of permanent sources of capital pooled together. It shows the risk of the business and is used to evaluate projects.

WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock

Remember to use the After tax cost of debt :

After tax cost of debt = Interest x (1 - tax rate)

= 10% x ( 1 - 0.40)

= 6.00 %

Cost of equity :

Cost of equity = Return from Risk free security + Beta x Risk Premium

= 4.00 % + 1.8 x 8.00%

= 18.40 %

Cost of Preference Stock :

Cost of Preference Stock = Dividend / Market return x 100

= $2.50 / $ 25 x 100

= 10%

therefore,

WACC = 18.40 % x 30 % + 6.00 % x 60 % + 10.00% x 10%

= 10.12 %

thus,

Ford's weighted average cost of capital is 10.12 %

6 0

2 years ago

Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying $1650375. The bonds mature January

pishuonlain [190]

Answer:

B) $3271.

Explanation:

Since Sheridan Company uses the effective interest method to account for Scott Company bonds, and it purchased them on discount, it must increase its debt investments by:

(market price x effective interest) - (face value x coupon rate) =

($1,650,375 x .055) - ($1,750,000 x .05) = $3,270.63 ≈ $3,271

since the bonds pay a semiannual coupon, the yearly interest rates must be divided by 2.

8 0

2 years ago