Which of the following is not part of active listening?

Four investors bought a real estate asset together and decided to divide the profits equally. Investor A invested $200,000; inve

Charra [1.4K]

Answer:

$150,000

Explanation:

If four investors bought a real estate asset together and decided to divide the profits equally.

Investor A invested $200,000;

investor B invested $500,000;

investor C invested $800,000;

investor D invested $500,000. If the net profit for the first year was $1,000,000, investor A receives $150,000 more than if the profits were divided in proportion to how much they invested.

If the profits were divided according to investment percentage he would have gotten 200,000 / (200,000 +500,000 + 800,000+500,000) x $1m = $100,000.

However if profits are shared equally he receives $1m / 4 investors = $250,000.

Therefore $250,000 - $100,000 = $150,000

4 0

2 years ago

A one-year zero coupon bond costs \$99.43$99.43 today. Exactly one year from today, it will pay \$100$100. What is the annual yi

KengaRu [80]

Answer:

0.00573

Explanation:

Cost of the bond today = $99.43

Value of bond at end of year = $100

Difference = $100 - $99.43 = $0.57

This $0.57 represents earnings on such bond value, that is yield on the bond.

Thus, yearly yield = $0.57/$99.43 = 0.00573

This value represents the discount rate of 1 year on $100 that is for which present value $99.43.

Final Answer

0.00573

5 0

2 years ago

Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the fol

kondaur [170]

Answer:

Golden Eagle Company

Adjusting Journal Entries:

December 31:

Debit Supplies Expenses $1,200

Credit Supplies $1,200

To record adjusting entry for supplies used.

Debit Insurance Expenses $1,100

Credit Prepaid Insurance $1,100

To record insurance expense for the month.

Debit Salaries Expense $14,200

Credit Salaries Payable $14,200

To record accrued salaries for the month.

Debit Deferred Revenue $600

Credit Rent Revenue $600

To record the rent revenue for the month.

Explanation:

a) Supplies:

Beginning Balance = $1,100

Purchases $2,700

Total available $3,800

Ending balance $2,600

Supplies Expenses $1,200

b) Prepaid Insurance:

Beginning balance = $4,400

Insurance Expense $1,100

Ending balance $3,300

c) Salaries Payable:

Beginning balance = $9,200

Cash payment ($9,200)

Ending balance = $14,200

Salaries Expense = $14,200

d) Deferred Revenue:

Beginning balance = $1,200

Rent Revenue $600

Ending balance $600

e) Adjusting journal entries are made at the end of the accounting period. They help to reconcile the accounts from a cash basis to the accrual basis. With this basis, accrued revenue and expenses, advance payment of expenses, advance receipt of revenue, and depreciation charges are adjusted to reflect in the accounts the period affected by transactions. The aim is to match expenses and revenue to each other and to the period that generated the revenue or incurred the expense.

3 0

2 years ago

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

Bonds of Zello Corporation with a par value of $1,000 sell for $960, mature in five years, and have a 7% annual coupon rate paid

AURORKA [14]

Answer and Step by Step Explanation:

a i)Current yield = Coupon/Price = $70/$960 = 0.0729 = 7.29%

ii. Yield to maturity (to the nearest whole percent, i.e., 3%, 4%, 5%, etc.)

YTM = 3.993% semiannually or 7.986% annual bond equivalent yield.On a financial calculator, enter: n = 10; PV = –960; FV = 1000; PMT = 35

iii.

Realized compound yield is 4.166% (semiannually), or 8.332% annual bond equivalent yield.

Therefore to get this value, we would find the future value (FV) of reinvested coupons and principal in which there will be six payments of$35 each, reinvested semiannually at 3% per period.

PV = 0; PMT = 35; n = 6; i = 3%. Compute: FV = 226.39

Three years from now, the bond will be selling at the par value of $1,000 because the yield to maturity is forecast to equal the coupon rate. The total proceeds in three years will be: $226.39 + $1,000 =$1,226.39

The rate (yrealized) that makes the FV of the purchase price equal to $1,226.39: $960 * (1 + yrealized)6= $1,226.39

yrealized= 4.166% (semiannual)

b . i. Current yield. Current yield can be defined as the way capital gains or losses on bonds bought at prices , reinvestment income on coupon payments are not account for other than par value.

ii. Yield to maturity can be seen as the bond which is held until maturity and that all coupon income can be reinvested at a rate equal to the yield to maturity

iii. Realized compound yield are yield that is affected by the forecast of reinvestment rates, holding period, and yield of the bond at the end of the investor's holding period

7 0

2 years ago