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2 years ago

The revenues and expenses of Zenith Travel Service for the year ended August 31, 20Y4, follow:

Business

1 answer:

Alisiya [41]2 years ago

8 0

Answer:

Zenith Travel Service

Statement of Owner's Equity for the year ended August 31, 20Y4:

Capital as of September 1, 20Y3 = $456,000

Additional investment 43,200

Retained Earnings (8,400)

Drawings (21,600)

Capital as of August 31, 20Y4 $469,200

Explanation:

a) Data and Calculations:

Additional investment = $43,200

Personal withdrawal = $21,600

Income Statement for the year ended August 31, 20Y4:

Fees earned $899,600

Office expense 353,800

Miscellaneous expense 14,400

Wages expense 539,800 908,000

Net income/Retained earnings ($8,400)

b) Zenith's statement of owner's equity is a financial statement that reports the changes in the equity section of Zenith's balance sheet during the year ended August 31, 20Y4. In other words, it reports the events that increased or decreased Megan Cox's equity over the course of the year from September 1, 20Y3 to August 31, 20Y4.

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Highly Suspect Corp. has current liabilities of $401,000, a quick ratio of 1.50, inventory turnover of 3.70, and a current ratio

Scrat [10]

Answer:

$3,115,770

Explanation:

Given:

Current ratio = 3.60

Current liabilities = $401, 000

Quick ratio = 1.50

Inventory turnover = 3.70

Current ratio is calculated by dividing your current assets by your current liabilities.

$Current\ ratio = \frac{Current\ Assets}{Current\ Liabilities}$

$3.60 = \frac{Current\ Assets}{401, 000}$

Current Assets = 3.60 × 401,000

= $1,443,600

$Quick\ ratio = \frac{(Current\ Assets\ -\ Inventory)}{Current Liabilities}$

$1.50 = \frac{1,443,600\ -\ Inventory}{401,000}$

1.50 × 401,000 = 1,443,600 - Inventory

601,500 = 1,443,600 - Inventory

Inventory = 1,443,600 - 601,500

= $842,100

$Inventory\ Turnover = \frac{Cost\ of\ Goods\ Sold}{Inventory}$

$3.70 = \frac{Cost\ of\ Goods\ Sold}{842,100}$

Cost of Goods Sold = 3.70 × 842,100

= $3,115,770

8 0

2 years ago

The supply of product x is elastic if the price of x rises by

garri49 [273]

The answer to this question is <span>5% and the quantity supplied rises by 7%.
A product is considered as elastic if the change in prices will also affect the changes in total supply.
Usually, this type of products are not considered unique or rare and there are a lot of substitute for this product in the market</span>

8 0

2 years ago

In a manufacturing company as many as 100 labourers are working in the production department.

snow_tiger [21]

Answer:

On one hand, the principle of management which is being ignored in this case is that of Unity of Command.

Explanation:

The principle of Unity of Command stipulates all staff or employee, for sakes of clarity and avoidance of confusion, an abiguity, should take instructions from only one boss or line manager.

On the other hand, the principle of management that is being followed in the above case is that of Taylors Functional Foremanship.

The practice of this technique requires that planning and execution be seperated according to areas of specialisation. Specialisation is the primary logic or argument in the Taylors Functional Foremanship principle. Taylors advocates that each foreman needs to be highly proficient, possess special know-how and be capable of directing the staff with high exuberance and tact.

Cheers!

8 0

2 years ago

Which of the following answer options are your employer's responsibility? (OSHA)

Dmitrij [34]

Answer: A, B, and C. ALL OF THE ABOVE!

Explanation:

They're all the correct answer.

3 0

1 year ago

Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company

blsea [12.9K]

Answer:

A. 12.1%

B. 8.9%

Explanation:

a. Calculation for What is the company's new cost of equity

Using this formula

New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]

Let plug in the formula

New cost of equity=[0.089+[(0.089-0.057)*(1)*1]

New cost of equity=[0.089+0.032*(1)*1]

New cost of equity=[0.121*(1)*1]

New cost of equity=0.121*100

New cost of equity=12.1%

Therefore the company's new cost of equity will be 12.1%

b. Calculation for What is its new WACC

Particular Weight Cost Weighted cost

Equity 0.5000 *12.1% = 0.0605

Debt 0.5000 * 5.7% =0.0285

WACC =0.089*100

WACC =8.9%

(0.0605+0.0285)

Therefore the new WACC will be 8.9%

4 0

2 years ago