Answer:
I think A but i might be wrong
Explanation:
Answer:
a. Amount of operating expenses recognized during the accounting period = Account payable closing balance + Cash payment - Opening balance
= $25,000 + $40,000 - $2,000
= $63,000
b. Net income earned during the accounting period = Cash revenue - Amount of operating expenses recognized
= $85,000 - $63,000
= $22,000
C. Amount of cash flow from operating activities = Net income + Increase in current liability
= $22,000 + ($25,000 - $2,000)
= $45,000
Answer:
I would purchase the share as he actual value is more than its current market price
Explanation:
expected dividend in perpetuity =present dividend *growth rate
present dividend is $5.25
growth rate is 8.5%
expected dividend =$5.25*(1+8.5%)
expected dividend=$5.70
in determining the actual value of the stock we the stock price formula below:
price=expected dividend/(expected return-growth rate)
price=$5.70/(15.5%-8.5%)
price=$81.43
In actual terms the stock should be selling for $81.43, hence a buy decision at $78.50 would be a welcoming as the stock is selling beyond its real worth.
Answer:
5,182 Units
Explanation:
The computation of additional units is given below:-
Operating income = Contribution Margin Per unit × Units - Fixed cost
= ($4.50 - $1.75) × 29,000 - 8,500
= $71,250
Operating income is increased by 20%
Operating income = $71,250 × 1.20
= $85,500
So, per units
$85,500 = ($4.50 - $1.75) × Units - 8,500
= $94,000 ÷ 2.75
= 34,181.82
Additional Units
= 34,181.82 - 29,000
= 5,182 Units
