Answer:
21.9%
Explanation:
Given that
Operating leverage = 7.3
Increase in sales = 3%
According to the given situation, the computation of net operating income is shown below:-
Increase in operating income = Operating leverage × Increase in sales
= 7.3 × 3
%
= 21.9%
Therefore for computing the increase in operating income we simply applied the above formula.
Answer and Explanation:
the journal entry is given below:
Depletion Expense $1,358,500
To Accumulated Depletion $1,358,500.
(Being depletion expense is recorded)
Here the depletion expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
Working note
Depletion expense is
= ($5,900,000 + $600,000) ÷ $2,000,000 × 418,000
= $1,358,500
Answer:
The price of the stock is expected to be $188.16 in 1 year.
Explanation:
This can be determined as follows:
Current price of the stock = Expected next dividend / Expected return = $24.87 / 15.2% = $163.62
Expected stock price in 1 year = Current price of the stock * (100% + Expected return)^Number of year = $163.62 * (100% + 15.2%)^1 = $188.16
Therefore, the price of the stock is expected to be $188.16 in 1 year.
Answer:
The amount to save now is = $862.03 (to 2 decimal places)
Explanation:
In order to solve this, we will compute the end-of-year amounts using the 5% increase each year. This is done as follows:
Year 1 ending = $200
Year 2:
Year 2 beginning price = $200
Note that 5% increase = 5/100 = 0.05
increase in year 2 = 5% of 200 = 0.05 × 200 = 10
Year 2 new price = 200 + 10 = $210
Year 3:
beginning price = $210
increase in year 3 = 0.05 × 210 = $10.5
Year 3 new price = 210 + 10.5 = $220.5
Year 4
beginning price = $220.5
interest in year 4 = 0.05 × 220.5 = 11.025
new price in year 4 = 220.5 + 11.025 = $231.525
Next to calculate the amount needed to pay for one travel ticket per year for the next four years, we will add the prices of the tickets each year as follows:
Total amounts needed = 200 +210 + 220.50 + 231.53 = $862.03