Answer:
a.$37,560
Explanation:
Cash balance $40,000 at month end = Cash balance $52,000 at beginning + cash receipts in June of $532,160 - cash disbursements of $581,720 + New borrowing
⇔ $40,000 = $2,440 + new borrowing
⇔ New borrowing = $40,000 - $2,440 = $37,560
If Skot wishes to maintain a cash balance of $40,000, Skot have to borrow $37,560 if it started the month with a cash balance of $52,000
Answer:
How much do you make in interest in a year?
<u>$ 1100</u>
How much would you need to have made for your spending power to keep up with inflation in that year?
<u>$ 1782
</u>
How much buying power did you lose in that year because of inflation?
<u>$ 682
</u>
Explanation:
Your interest formula is given to you.
Interest in a year = principal (the amount invested) * rate (the interest rate) * period (the time you're measuring)
Interest = 55,000 * 2% * 1 year = 55,000 * 0.02 * 1 = $1,100
How much would you need to have made for your spending power to keep with inflation? Your interest rate would have needed to match the inflation rate, otherwise prices are going up faster than you're saving.
Required interest = 55,000 * 3.24% * 1 year = 55,000 * 0.0324 * 1 = $1,782
How much buying power did you lose? The difference between your required interest and your actual interest.
Buying power lost = 1,782 - 1,100 = $682. You lost this much in buying power.
Hope that helped :)
Answer:
a. What amount of taxable dividend income, if any, does Madison recognize in 2009?
Madison doesn't have to recognize any income because she is not getting any. Only after Madison decides to sell his stocks will he recognize any taxable income if she makes a gain.
b. What is Madison's income tax basis in her new and existing stock in Badger Corporation, assuming the distribution is non-taxable?
Madison current basis is $100 per stock, and after the stock dividend it will be $100 / 1.1 = $90.91 per stock
c. How would you answer questions a and b if Madison was offered the choice between 1 share of stock in Badger for each 10 shares she owned or $100 cash for each 10 shares she owned in Badger?
then the cash dividend would be $10 per stock, which results in $10 x 1,000 = $10,000 taxable income. Her basis in the stock will remain not change.
Answer:
Given that,
Cost of goods manufactured = $1,486,000
Cost of goods sold (unadjusted) = $1,337,000
Therefore, the journal entry for the transfer of completed goods from WIP to Finished goods is as follows:
Finished Goods A/c Dr. $1,486,000
To Work in process $1,486,000
(Being transfer of completed goods from work in process to finished goods recorded)
Answer:
a. 6.625.
b. C = 80 billion, DES = 800 billion and RES = 80 billion.
Explanation:
a) Monetary base = CU + RES = 160 billion. Money supply = CU + DES = 1060 billion. R-D ratio = 100/1000 = 0.10, C-D ratio = 60/1000 = 0.06, money multiplier = (1 + C-D)/(C-D + R-D) = (1 + 0.06)/(0.10 + 0.06) = 6.625.
b) Money multiplier = (1 + 0.10)/(0.10 + 0.10) = 5.5, money supply = monetary base x multiplier or money supply = 160 x 5.5 = 880 billion. CU + DES = 880 billion and C-D = 0.10. Hence C = 80 billion, DES = 800 billion and RES = 80 billion.
