Answer:
A) Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years. FINANCIAL ASSET CREATED: when the loan was received, a financial asset was created. Money is exchanged for a promissory note.
B) Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software. REAL ASSET CREATED: when the software was developed, a real asset was created. Money was invested in developing the software.
C) Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,500 shares of Microsoft stock. FINANCIAL ASSET CREATED: when the software was traded, a financial asset was created. A real asset was traded in exchange for financial assets.
D) Lanni sells the shares of stock for $80 per share and uses part of the proceeds to pay off the bank loan." FINANCIAL ASSET DESTROYED: when the loan is paid back, the financial asset (loan) ceases to exist. When the money is paid back to the bank, the loan and the promissory note cease to exist.
Answer:
$26,294.75
Explanation:
Next years estimated total sales = $672,500
profit margin 4.6% of total estimated sales = 4.6% x $672,500 = $30,935
dividend payout ratio 15% of net income = $30,935 x 15% = $4,640.25
increase in retained earnings = net income - distributed dividends = $30,935 - $4,640.25 = $26,294.75
Answer:
$36
Explanation:
Computation for comparable firm 1
Price earning = Share price / Earning per share
= $50 / 5 = $10
Computation for comparable firm 2
Price earning = Share price / Earning per share
= $28 / 2 = $14
Average price earning = (Price earning of firm 1 + Price earning of firm 2) / 2
= ($10 + $14) / 2
= $12
Computation of stock price For STU
Stock price = Average price earning × Earning per share of STU
STU = 12 × ($3 million / $1 million) = $36
Answer:
Assessing the allowance for uncollectible accounts for reasonableness.
Explanation:
Assessing the allowance for uncollectible accounts for reasonableness give the most assurance concerning the valuation assertion about accounts receivable as The term uncollectible accounts receivable is used to describe the portion of credit sales in accounts receivable the company does not expect to collect from a customer.
Uncollectible accounts is used in the valuation of accounts receivable, which appears on a company's balance sheet.
Answer:
The correct answer is option d.
Explanation:
Unfavorable weather in Florida has adversely affected the production of Florida oranges. The decline in production has led to reduced supply of Florida oranges. This decrease in supply will lead to an increase in the price.
As Florida oranges and California oranges are substitutes, with the increase in the price of Florida oranges will lead to an increase in the demand for California oranges as people will prefer the cheaper substitute.
