Answer:
See the explanation box
Explanation:
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Assume TTT (a) collected $420 million in 2018 for magazines that will be distributed later in 2018 and 2019, (b) provided $204 m
illion of services on these subscriptions in 2018, and (c) provided $216 million of services on these subscriptions in 2019.
Using the information given, indicate the accounts, amounts, and accounting equation effects of transactions (a), (b), and (c). (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in whole dollars.)
Using the information given, indicate the accounts, amounts, and accounting equation effects of transactions (a), (b), and (c). (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in whole dollars.)
1 answer:
Answer
The answer and procedures of the exercise are attached in the following archives.
Consider the excel document where the source of the results is plotted.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
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Answer:
(E) 225,000; 195,000
Explanation:
Provided information,
Method used = FIFO
Provided units in opening as well as closing are 100% complete with respect to materials.
Opening = 50,000 units for $70,500 which were 100% complete with respect to material
During the month = 225,000 units for $342,000
Since both are 100 % complete for materials
Equivalent units for materials for the month = 225,000 = 225,000 units
Provided for conversion cost
Opening = 50,000 which is 40% complete, that means 60% was not complete which is completed during the month
= 50,000 60 % = 30,000 units during the month
225,000 units newly added this month out of which 150,000 units are completed
Remaining 75,000 units are 20% complete for conversion cost = 75,000 20% = 15,000 units completed.
Equivalent units completed during the month = 30,000 from opening + 150,000 + 15,000 = 195,000 units
Therefore correct option is
(E) 225,000; 195,000
Answer:
$73.47
Explanation:
2.87 is the current dividend paid (D0)
Use that to find dividends for the next 5 years;
D1 = D0(1+g) ; g being the growth rate
D1 = 2.87(1.08) = 3.0996
D2 = 3.0996(1.08) = 3.3476
D3 =3.3476(1.08) = 3.6154
D4 = 3.6154(1.08) = 3.9046
D5 = 3.9046(1.08) = 4.2170
Next, find terminal cashflows;
D6 (yr 2024) = 4.2170 (1.03) = 4.3435
Find Present values of all the dividends using the 8% discount rate with the formula; PV = FV/
PV(D1) = 2.87
PV(D2) = 2.87
PV(D3) = 2.87
PV(D4)= 2.87
PV(D5)= 2.87
PV of terminal value; PV(D6 onwards) = = 59.1223
Sum up the PVs to find value per share;
$2.87 +$2.87 +$2.87 +$2.87 +$2.87+ $59.1223 = $73.47