Answer:
$22,245.44
Explanation:
For computing the future value we need to apply the future value which is to be shown in the attachment below:
Provided that,
Present value = $0
Rate of interest = 8%
NPER = 18 years
PMT = $550
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after applying the above formula, the future value is $22,245.44
Complete Question:
Cell One Corporation began 2018 with retained earnings of $ 260 million. Revenues during the year were $ 520 million, and expenses totaled $ 340 million. Cell One declared dividends of $ 61 million. What was the company's ending balance of retained earnings? To answer this question, prepare Cell One's statement of retained earnings for the year ended December 31, 2018, complete with its proper heading.
Answer:
Cell Corporation
Statement of Retained Earnings for the year ended December 31, 2018:
$'million
Retained Earnings, Dec. 31, 2017 260
Net Income 180
Dividends (61)
Retained Earnings, Dec. 31, 2018 379
Explanation:
a) Data and Calculations:
Beginning Retained Earnings = $260 million
Revenues during the year were $ 520 million
Expenses totaled $ 340 million
Net Income (Revenue - Expenses) $180 million
Cell One declared dividends of $ 61 million
b) Cell Corporation's Retained Earnings for the year ended December 31, 2018 is the difference between the beginning retained earnings, net income, and the amount of dividend declared during the current year. This figure gives the amount of equity that has been retained for growing the business, which is an important internal source of corporate funding.
To calculate ending retained earnings, you start with beginning retained earnings, add her company's revenue, subtract expenses, and then subtract dividends. In this hypothetical scenario, the company would end the year with an ending balance of $3 million in retained earnings.
The calculation of the ending balance of retained earnings follows a simple formula. The beginning retained earnings, plus the revenue, subtracts expenses and then dividends. In this case, there were no specific numbers provided in the question, so let's assume examples. If a company starts with retained earnings of $2 million, earns revenue of $3 million during the year, and has total expenses of $1 million, the calculation would resemble the following:
Retained Earnings
Beginning Retained Earnings = $2 million
Add: Revenue = $3 million
Less: Expenses = $1 million
Equals: Intermediate Total = $4 million
Less: Dividends Paid = (Let's assume $1 million)
Equals: Ending Retained Earnings = $3 million
So, in this hypothetical scenario, the company would end the year with an ending balance of $3 million in retained earnings.
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Answer:
Cleans current ratio is = 2.71
Explanation:
The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations.
Current asset is any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year or operating cycle.
Current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year or the operating cycle of a given firm, whichever period is longer.
Current ratio = current assets ÷ current liabilities.
From the question above;
Current assets;
Cash $600
Account receivable $900
Office supplies $400
Total $1900
Current liabilities;
Account payable $500
Salaries payable $200
Total $700
Current ratio = 1900 ÷ 700
Current ratio = 2.71
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A pyramid scam is an unethical and unreliable investment pitch that depends on guaranteeing irrational profits on fictitious investments. The fact that the early investors receive these substantial returns prompts them to endorse the program to others. Returns to investors are paid from fresh capital coming in. When there are no more investors left, the pyramid eventually falls.
These businesses, sometimes known as pyramid schemes, are prohibited in the United States.
What is multi level Marketing?
Distributors profit from the sale of tangible goods and from commissions on the purchases and sales of the distributors they have recruited through Multi-Level Marketing operations (MLMs), which are respectable business schemes.
Although they sometimes pass for MLMs, pyramid schemes are more concerned with the fees from recruiters than the money from product sales.
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1 pts
Petulia has been following the stock market, and has noticed that it has generally been declining for
the last several weeks. Many of her friends have sold stock, but Petulia looks at this situation as a
good opportunity to buy. Petulia's views are consistent with the
approach to investing
in the stock market.
O contrarian
opposing
Ο Ο Ο Ο
O arbitrarian
negativist
Question 7
Answer:
Contrarian
Explanation:
In this case, Petulia is following the contrarian investment style. Those who follow this style, invest contrary to prevailing market trends (hence the name), by buying when other are selling, and selling when others are buying.
Petulia is a contrarian because instead of selling stock during the downward trend, she opted to buy stock instead, hoping for a rise in the market in the short, or in the long-term.
Answer:
stock price is below $50
Explanation:
given data
price of a stock = $64
strike price = $60
option price = $10
solution
we know here that stock sell for $60 and pay for $10
so that here price of stock is
stock price = $60 - $ 10
stock price = $50
and net profit will be
net profit = $10 - $10
net profit = 0
so that we can say stock price is less than $50 for trader for making profit 0 or greater than 0.
so price will be below than $50
For the Year Ended December 31, 2022
Sales revenue $ 145,200
Cost of goods sold 105,000
Gross profit 40,200
Selling expenses $10,800
Administrative expenses 3,600 14,400
Income from operations 25,800
Interest expense 1,800
Income before income taxes 24,000
Income tax expense 4,800
Net income $ 19,200
Additional data:
1. Depreciation expense was $10,500.
2. Dividends declared and paid were $12,000.
3. During the year equipment was sold for $5,100 cash.
This equipment cost $10,800 originally and had accumulated depreciation of $5,700 at the time of sale.
Prepare a statement of cash flows using the indirect method.
Answer:
statement of cash flows using the indirect method
Cash flow from Operating Activities
Cash Receipts from Customers $145,200
Cash Paid to Supplies and Employees ($108,900)
Net Cash from Operating Activities $36,300
Cash flow from Investing Activities
Proceeds from Sale of Equipment $5,100
Net Cash from Investing Activities $5,100
Cash flow from Financing Activities
Dividends Paid ($12,000)
Net Cash from Financing Activities ($12,000)
Movement during the period $29,400
Cash and Cash Equivalents at Beginning of the Period 0
Cash and Cash Equivalents at the End of the Period $29,400
Explanation:
Cash Receipts from Customers Calculation :
Sales revenue $ 145,200
Assuming Cash Sales
Cash Paid to Supplies and Employees Calculation :
Cost of goods sold $105,000
Add Selling Expenses $10,800
Add Administrative expenses $3,600
Less Depreciation ($10,500)
Cash Paid to Supplies and Employees $108,900
The statement of cash flows for Crane Company using the indirect method starts with the net income and then adjusts for non-cash items such as depreciation and the gain/loss from equipment sale. The net Cash provided by operating activities would be $17,700. This method helps understand the cash movements within the company.
To prepare a statement of cash flows for Crane Company for the year ended December 31, 2022 using the indirect method, you first start with the net income from the income statement and then make adjustments for changes in non-cash items, add back depreciation expense (a non-cash item) and account for the gain/loss from the sale of equipment. The prepared statement would look like this:
The net Cash provided by operating activities would be $17,700 ($19,200 + $10,500 - $12,000). This method helps in revealing the sources and uses of cash within the company.
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