ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note.
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ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing

$240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year the company also borrowed an additional $320,000 from the bank. What was total assets on ABC's balance sheet at the end of the year last year?

Select one:

a. None of these

b. $2,600,000

c. $2,558,200

d. $2,598,200


On December 31, 2017, Johnson Inc. has total liabilities of $520,000 and total equity of $446,000. The company needs to raise additional funds through debt and equity. The company will issue 1,000 shares of common stock at $9 per share and in addition it intends to borrow as much as it can from Bank of Morganville. Bank of Morganville requires a maximum debt-to-asset ratio of 0.8. 

What is the maximum additional amount that Johnson Inc. can borrow after the additional stock is issued?

Select one:

a. $1,264,000

b. $1,300,000

c. $260,000

d. $0 (the company already exceeds the 0.8 debt-to-asset ratio)


Paper Inc. sells markers. During January 2018, its inventory records for one brand of its markers were as follows:


Quantity Price per market Total

Beginning Inventory  16 $1.21 = $19.36

January 6 Purchase  6  $0.88 =$5.28

January 10 Sale  9 N/A

January 15 Purchase  8  $0.91 =$7.28

January 20 Sale  3 N/A

January 25 Purchase      9 $0.85 =$7.65


Determine the cost of goods sold using the perpetual weighted average cost method.

Select one:

a. $12.96

b. $13.20

c. $13.58

d. $12.18

Top Answer

Question1 A.... View the full answer

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Question 1:
Asset =
Liabilities
Equity
Beginning
$ 2,240,000.00
$
240,000.00
$ 2,000,000.00
Last Year
$
358,200.00
320,000.00
$
38,200.00
Ending
$ 2,598,200.00
$
560,000.00
$ 2,038,200.00
Question...

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