Doc's ribhouse commenced with $52,000 in equity, generated $35,000 in net income, and distributed $12,000 in dividends. To find the ending equity, use the formula: Beginning Equity + Net Income - Dividends = Ending Equity. Plugging in the values gives us: $52,000 + $35,000 - $12,000 = Ending equity. This results in $52,000 + $23,000 = $75,000, confirming the ending equity is $75,000.
the answer that is correct is a) Fast. The reasoning behind this can be guessed quite easily. Primarily, individuals tend to be risk-averse when it comes to valuing their money, which means they generally avoid taking risks. Even though opportunities that promise higher profits, increased visibility, or greater monetary rewards seem enticing initially, they inherently come with unavoidable risks, and there is always a possibility that such opportunities may not yield the expected outcomes. That being said, raising funds rapidly becomes a challenging task.
a. The current total asset value for Klingon is calculated as follows: total assets equal net fixed assets plus current assets. Here, net fixed assets are $3,400,000, and current assets total $1,130,000, which is derived from net working capital plus current liabilities ($235,000 + $895,000). Hence, total assets amount to $3,400,000 + $1,130,000, leading to a total of $4,530,000. b. The market value of net working capital stands at $1,150,000, and the market value of fixed assets is $5,100,000. Therefore, when these figures are combined, the total fair market value amounts to $1,150,000 + $5,100,000, which equals $6,250,000.
Natalie intends to achieve a 25% profit on a sale of $70,000. To calculate, she does the following:
(125 ÷ 100) × 70000 = $87500.
Natalie aims for $87500, however, the agent will take a 6% commission on the sale price, so she must include this amount, calculated as:
(106 ÷ 100) * 87500 = $92750.
For the total of $92750, there is an additional closing cost of $1200,
This gives us $92750 + $1200 = $93950.
When rounding $93950 to the nearest hundred, we arrive at $94000.
Therefore, to secure a 25% profit, Natalie should set the final sale price at $94000.
The gross profit method of inventory valuation is invalid under the circumstance where the gross margin percentage experiences significant changes throughout the year.
