Incubus Corporation began with an investment by shareholders of $36,000.
a. In its first year, its income showed a deficit of $6,600. What would the equity section of its balance sheet show at year end? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.)
| Common stock | $ | |
| Retained earnings | ||
| Total Stockholders' Equity | $ | |
b. In the second year, it had income of $16,400 and a dividend of $5,600 was paid. What would the equity section of its balance sheet show at year end?
| Common stock | $ | |
| Retained earnings | ||
| Total Stockholders' Equity | $ | |
c. In the third year, Incubus sold more shares for a value of $18,000, earned income of $11,600, and paid a dividend of $5,600. What would the equity section of its balance sheet show at year end?
| Common stock | $ | |
| Retained earnings | ||
| Total Stockholders' Equity | $ | |
In: Finance
Portfolio A consists of a 2-year zero-coupon bond with a face value of $8,000 and a 10-year zero-coupon bond with a face value of $2,000. The current yield on all bonds is 11.75% per annum. (Answer with two decimal digits accuracy)
The duration of portfolio A is
In: Finance
$1,000 deposits are made into an investment account at the end of year 1, 2, and 3. No deposit was made in year 4. Interest accrues at 5.0% monthly. What is the balance in the account at the end of Year 5?
$3,666
$3,487
$3,476
$3,649
In: Finance
At the end of every year you deposit $2,000 into an account that earns 6% interest per year. What will be the balance in your account immediately after the 30th deposit?
In: Finance
Under GAAP, which of the following costs are normally expensed in the year incurred, regardless of the expected economic benefit?
Group of answer choices
A) Goodwill created as a result of a business combination
B) Software development costs to achieve technological feasibility
C) A patent purchased from an independent third party
In: Finance
What is the present value of 1,400 per year annually at the end of years 25 to 43 if the interest rate is 7%
14,082.72
13,759.64
14,469.83
2,852.68
2,594.73
In: Finance
In: Finance
What is the yield to maturity of a eight-year, $10,000 bond with a 5.1% coupon rate and semiannual coupons if this bond is currently trading for a price of $8,928?
|
8.24% |
||
|
6.86% |
||
|
3.43% |
||
|
9.61% |
In: Finance
Lasso Corp. wants to forecast for 2020. The end of year statements for 2019 are as follows:
Income Statement
Revenues $245,622
COGS - 142,461
Gross Profits 103,161
Expenses - 49,124
EBIT 54,037
- Interest - 9,642
EBT 44,395
-Taxes -7,991
EAT 26,637
Balance Sheet
Current Assets $179,304 Current liabilities $85,700
Fixed Assets $140,930 Long-term debt 78,180
Total Assets $320,234 Total liabilities $163,880
Equity $156,354
Total Liabilities
& Equity $320,234
Management expects the following for 2020:
An 8% increase in revenues; COGS will increase by 2% from its current percent of sales. Expenses will stay at the same percent of sales; Current assets will also stay at their same percent of sales. Fixed assets will increase by $18,000 ; All interest will be paid at a 12% interest rate and will only be on long-term debt, which is not expected to change; the tax rate is expected to stay at the same rate. No dividends are paid and any shortfalls should be made up in current liabilities.
Prepare a forecasted income statement and balance sheet for 2020. Work to the nearest dollar.
In: Finance
The following information pertains to DEF Company, Inc. for the year 2018.
Liabilities at the end of the year, December 31, 2018 = $1,200
Contributed capital at the end of the year, December 31, 2018 = $700
Beginning retained earnings, January 1, 2018 = $300
Revenue during 2018 = $7,500
Expenses during 2018 = $6,800
Distributions to owners during 2018 = $100
What is the amount of the company's total assets at December 31, 2018?
| a. |
$2,800 |
|
| b. |
$2,700 |
|
| c. |
$2,600 |
|
| d. |
$2,400 |
In: Finance