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1 year ago

Wayman Corporation reports the following amounts in its December 31, 2021, income statement.

Business

1 answer:

professor190 [17]1 year ago

7 0

Answer:

Wayman Corporation

Income Statement for the year ended December 31, 2021

Sales Revenue $460,000

Cost of Goods Sold ($140,000)

Gross Profit $320,000

Operating Expenses

Advertising Expense $40,000

Salaries Expense $50,000

Utilities Expense $60,000

Total operating expense ($150,000)

Operating Income $170,000

Interest Expense ($30,000)

EBT $140,000

Income tax expense ($60,000)

Net Income $80,000

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Scott Lockhart owns and operates AAA Delivery Services. On January 1, 20Y7, Common Stock had a balance of $60,000, and Retained

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Answer:

Explanation:

The stockholder's equity statement is composed of common stock and retained earnings. The ending balance shown in the attached spreadsheet, after modification.

The Ending balance of earnings retained = Starting balance of earnings retained + net income - dividend paid

And, Ending balance of common stock = Starting balance of common stock + issued stock

The preparation of the stockholders ' equity statement for the year ended December 31, 20Y7 is provided in the spreadsheet. The attachment below is:

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2 years ago

Joann Hayes is currently working on a project to tackle climate change. During the project, she needs to find different options

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Answer:

The correct answer is letter "C": Conceptual skills.

Explanation:

Conceptual skills are theoretical knowledge individuals have that allows them to synthesize abstract ideas with material objects to perform certain duties or pieces of work. In every professional field, conceptual skills are necessary moreover when new ideas are to be introduced to resolve problems.

Thus, Joann Hayes must out in practice her conceptual skills while finding ways to replace the use of non-renewable energy and feasible options to do that practically.

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2 years ago

An investment pays you $30,000 at the end of this year, and $15,000 at the end of each of the four following years. What is the

Stella [2.4K]

Answer:

Present value of the cashflow discounted at 5% per year 76,815.65

Explanation:

First, we calculate the present value of the 4 years 15,000 dollar annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 15,000.00

time 4

rate 0.05

$15000 \times \frac{1-(1+0.05)^{-4} }{0.05} = PV\\$

PV $53,189.2576

Now, we discount two more year as lump sum as this is two year after the invesmtent:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 53,189.26

time 2.00

rate 0.05000

$\frac{53189.2575624354}{(1 + 0.05)^{2} } = PV$

PV 48,244.2245

Finally we also discount the 30,000 by one year

30,000 / 1.05 = 28571.43

We add up both to get the present value:

48,244.22 + 28,571.43 = 76,815.65

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2 years ago

Jerome, Inc., paid $8,850 to make a debt investment in trading securities of Tedesco, Inc. On December 30, (within the same fisc

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Answer:

Date General Journal Debit Credit

Debt investment 8850

Cash 8850

Dec 30 Cash 7000

Debt investment 6500

Gain on sale of investment 500

Explanation:

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1 year ago

Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per shar

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Answer:

The answer is "8.37%".

Explanation:

$\text{MV of equity} = \text{equity price} \times \text{number of outstanding shares}$

$=84 \times 4100000\\\\=344400000$

$\text{MV of Bond1}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}$

$=1000 \times 70000 \times 0.98 \\\\=68600000$

$\text{MV of Bond2}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}$

$=1000 \times 50000 \times 1.08 \\\\=54000000$

$\text{MV of firm} = \text{MV of Equity} + \text{MV of Bond1}+ \text{MV of Bond 2}$

$=344400000+68600000+54000000\\\\=467000000$

$\text{Weight of equity W(E)} = \frac{\text{MV of Equity}}{\text{MV of firm}}$

$= \frac{344400000}{467000000}\\\\=0.7375$

$\text{Weight of debt W(D)}= \frac{\text{MV of Bond}}{\text{MV of firm}}$

$= \frac{122600000}{467000000}\\\\=0.2625$

Equity charges

By DDM.

$\text{Price = new dividend} \times \frac{(1 + \text{rate of growth})}{( \text{Equity expense-rate of growth)}}$

$84 = 3.95 \times \frac{(1+0.05)}{(\text{Cost of equity}- 0.05)}\\\\84 = 3.95 \times \frac{(1.05)}{(\text{Cost of equity} - 0.05)}\\\\84 = \frac{4.1475}{ (\text{Cost of equity} - 0.05)}\\\\\text{Cost of equity} -0.05 = \frac{4.1475}{84}\\\\\text{Cost of equity} -0.05 = 0.049375\\\\\text{Cost of equity} = 0.049375 + 0.05\\\\\text{Cost of equity} = 0.099375 \\\\\text{Cost of equity} \% = 9.9375 \% \ \ \ or \ \ \ 9.94 \% \\\\$

Debt expenses

Bond1

$K = N \times 2 \\\\$

$Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}$

$k=1\\\\K =20 \times 2\\\\980 = \sum [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] + \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\$

$K = N \times 2$

$Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}$

$k=1\\\\K =12 \times 2\\\\$

$1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\$