How much is capital will be credited to ariel?
Q: What is working capital? Thanks
A: Meaning: Working capital is nothing but a company’s cash used for day-to-day activities. The main…
Q: How much is legal capital?
A: it's the nominal value of all the accumulative shares issued by the corporate. for example, if a…
Q: how changes in Working Capital affect Cashflow?
A: Working capital or net working capital is equals to firm’s current assets minus current liabilities,…
Q: Would the NPVs change if the cost of capitalchanged?
A: The NPV (Net Present Value) is entirely based on the value of the weighted average cost of capital…
Q: What is operating capital, and why is it important?
A: Answer: Companies need funds to acquire net operating assets and to run day-to-day business…
Q: What is the goal of capital structure management?
A: In simple words, capital structure management refers to the process under which the managers take…
Q: What does capital structure theory attempt to do?What lessons can be learned from capital structure…
A: Capital structure is defined as mixture or proportion of all kinds of capital such as debt, equity…
Q: What are capital resources?
A: Capital resources are goods produced and used to make other goods and services. Capital resources…
Q: What is Financial Capital to you? Can you define financial capital and physical capital?
A: Capital Capital is referred to as anything through which the owner can confer benefit or value and…
Q: What is working capital
A: The current assets are the assets that can be converted into cash within one year. Current…
Q: What are the ramifications of having Working Capital?
A: The Ramifications Of Having Working Capital Will Be Explained:
Q: What is issued capital? How does it differ from Authorized capital?
A: Company needs the funds for business purpose. Hence, Company raise capital.
Q: What is optimal capital structure?
A: All resources that combine for manufacturing certain services or commodities is known as capital.…
Q: What are the Major challenges in financing working capital? Please elaborate with examples? What are…
A: Working capital is the difference between a business’s current assets and current liabilities. It is…
Q: How do we get the weighted average cost of capital if not given in the question?
A:
Q: Discuss the Cost of capital approach ?
A: Cost of capital is the required return necessary to make a capital budgeting project, such as…
Q: What is meant by working capital? What is significance of working capital management?
A: Working capital is the amount which the company would require to fund its day to day operations. It…
Q: Who are the providers (savers) and users (borrowers) of capital?
A: The providers are known as savers and the users are known ad borrowers of capital are given below…
Q: What is the significance of capital accounts?
A: Capital Account: An account which records the trading of foreign assets and liabilities during the…
Q: What are some ways that firms generate ideas for capital projects?
A: The development and ability of a company to stay successful rely on a steady stream of ideas for new…
Q: Explain the problem of a capital-investment?
A: For the financing of capital investment, generally, the company considers operating cash flow of its…
Q: What is Capital, Capitalization and Capital Structure in your own words.
A: Entrepreneurs use startup capital to cover any or all of the costs associated with starting a new…
Q: What is the capital components. breifly define.
A: Introduction: The Weighted Average Cost of Capital (WACC) of a company shows its overall cost of…
Q: What is capital? Give the composition
A: Capital means the amount that belong to the business or owner of the enterprise. Capital means the…
Q: Explain the concept of “working capital” in finance
A: The investment decision made in financial management is classified into two categories as…
Q: What is the capital structure
A: The capital structure was its unique mixture of equity and debt that a business uses to fund its…
Q: Explain Capital Accounts?
A: Capital : Generally refers to the amount invested in an enterprise by its owners eg…
Q: What does the empirical evidence say about capital structure theory? What are the implications…
A: Introduction: Capital structure relates to financing of the overall activities and development of a…
Q: How is surplus value transformed into capital, and how is this related to the process of capital…
A: Surplus value refers to the difference between the sale proceeds and cost of product.
Q: What is capital structure and why it is important?
A: Introduction: While selecting a capital structure main motive of the company is shareholders wealth…
Q: What is meant by capital structure?
A: CAPITAL STRUCTURE IS THE MIX OF THE LONG-TERM SOURCES OF FUNDS USED BY A FIRM . IT IS MADE UP OF…
Q: What is net working capital?
A: Net working capital: Net working capital is also known as the working capital. To compute the net…
Q: How many main categories of paid-in capital are there? And what are?
A: Paid-in capital means capital contributed by the owners [stockholders' equity]. Company can issued…
Q: What does Working Capital Mean?
A: The excess of Current Assets over Current Liabilities is known as Working Capital current assets…
Q: What is working capital?
A: Working capital is the difference between current assets and current liabilities. It is a measure of…
Q: What do you mean by working capital policy?
A: The working capital policies involve determining the sources of finance and allocation of the…
Q: Why is the management of working capital important?
A: Working capital can be defined as that portion of capital invested by a businessman to fulfill his…
Q: Describe the effects of Working Capital?
A: Working capital:- A business needs to meet short-term expenses and financial needs arising out of…
How much is capital will be credited to ariel?
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- Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business.The balance sheet of the two are shown below together with their agreement prior to formation.ArielBeautyCash113126Accounts Receivables200100Inventories5050Equipment800Furniture030Prepayments515TOTAL448321Accounts Payable7595Capital373226TOTAL448321Partners' agreements:Receivables are 97% collectibleAriel's inventories fair values is at P49 while P20 of Beauty's Inventories were damaged and are only 30% recoverable.The equipment is overdepreciated by P5 and the furniture's value will decrease by P4.P3 of Ariel’s prepayments were already exhausted while Beauty has unrecorded liability of P3.Cindy will contribute sufficient cash to give her 20% interest1. How much capital will be credited to Ariel?Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business.The balance sheet of the two are shown below together with their agreement prior to formation.ArielBeautyCash113126Accounts Receivables200100Inventories5050Equipment800Furniture030Prepayments515TOTAL448321Accounts Payable7595Capital373226TOTAL448321Partners' agreements:Receivables are 97% collectibleAriel's inventories fair values is at P49 while P20 of Beauty's Inventories were damaged and are only 30% recoverable.The equipment is overdepreciated by P5 and the furniture's value will decrease by P4.P3 of Ariel’s prepayments were already exhausted while Beauty has unrecorded liability of P3.Cindy will contribute sufficient cash to give her 20% interest1. How much capital will be credited to Ariel?2. How much capital will be credited to Beauty?3. How much capital will be credited to Cindy?4. How much is the total assets of the newly-formed partnership?Problem IAriel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business. The balance sheet of the two are shown below together with their agreement prior to formation. Ariel BeautyCash 113 126Accounts Receivables 200 100Inventories 50 50Equipment 80 0Furniture 0 30Prepayments 5 15TOTAL 448 321 Accounts Payable 75 95Capital 373…
- Rivera, Sampson, and Elliott are partners in a commercial plumbing business. Rivera and Sampson have also started another contracting company and have cash flow needs, which require periodic distributions from the partnership. In order to deal fairly with the level of partnership withdrawals, the partnership agreement calls for profit sharing as follows:Component Rivera Sampson ElliottSalaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$80,000 $80,000 $100,000Bonus on income after the bonus . . . . . . . . . . .0% 0% 10%Interest on ‘‘average net capital’’ . . . . . . . . . . . 0% 10% 10%Percentage of remaining profits. . . . . . . . . . . . .0% 30% 40%‘‘Average net capital’’ is determined by netting the partners’ drawing accounts against their capital accounts and weighting the net amounts for the appropriate portion of…1. Nita and Bona, entrepreneurs, agreed to invest cash to put up a business selling signature bags. They agreed to share profits based on the legal provision. The following are the ledger postings for 2019: (see attached image) Direction: a) In chronological order, describe the transaction that took place. b) From the above postings, determine the agreements contained in the Articles of Co-Partnership regarding required contribution of each partner, allowable withdrawals, and profit sharing ratio. c) Give the last two entries (drawings and profit share). d) Prepare a statement of partner's equity for 2019.A, B and C are partners of Push-it Partnership. Their capital balances are A- P400, B - P280 and C - P120. The following are their agreement in their profit sharing: 25% bonus to A based on profit after deducting the said bonus. B and C will be given 10% interest each on their capital balances. The remaining profits will be shared in the ratio of 5:2:1 for A, B and C respectively. How much is the profit share of A if the profit is P90? How much will be the income (loss) if the share ofA is P255? How much will be the income (loss) if the share of B is P21? How much will be the income (loss) if the share of C is P3?
- Problem I Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business. The balance sheet of the two are shown below together with their agreement prior to formation. Ariel Beauty Cash 117 126 Account receivables 100 200 Inventories 50 30 Equipment 80 0 Furniture 0 30 Prepayments 5 15 Total 352 401 Accounts payable 75 95 Capital 277 306 Total 352 401 Partners' agreements: Receivables are 97% collectible Ariel's inventories fair values is at P55 while P10 of Beauty's Inventories…Problem I Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business. The balance sheet of the two are shown below together with their agreement prior to formation. Ariel Beauty Cash 117 126 Account receivables 100 200 Inventories 50 30 Equipment 80 0 Furniture 0 30 Prepayments 5 15 Total 352 401 Accounts payable 75 95 Capital 277 306 Total 352 401 Partners' agreements: Receivables are 97% collectible Ariel's inventories fair values is at P55 while P10 of Beauty's Inventories were damaged and are only 30%…The condensed balance sheet and profit – sharing ratio of the partnership of Wenda, Wendy, and Wilma are presented below: Cash P 22,500.00 Liabilities P52,500.00 Due from Wanda 7,500.00 Due to Wilma 10,000.00 Other assets 205,000.00 Wanda, cap’l (4) 75,000.00 Wendy, cap’l (3) 50,000.00 Wilma, cap’l (3) 47,500.00 Total assets P235,000.00 Total equities P235,000.00 21. The partners agreed to liquidate and they sold all the Other assets for P150,000.00. How much of the available cash should go to Wanda? a. P45,500.00 b. P75,000.00 c. P42,500.00 d. P53,000.00 22. Refer to No. 21 above, how much will be received by Wendy in the partnership liquidation a. P41,000.00 b. P74,000.00 c. P33,500.00 d. P66,600.00
- Shoes and Socks are in partnership sharing profits and losses in the ratio 3/5: 2/5, respectively. The following is their trial balance as of 31 December 2008.DrCr$$Buildings (cost $105,000)80,000Fixtures at cost4,100Provision for depreciation: Fixtures2,100Debtors30,700Creditors13,295Cash at bank3,065Stock at 01 January 200831,370Sales181,555.50Purchases105,000Carriage outwards1,705Discounts allowed310Loan interest: M. Money1,950Office expenses2,380Salaries and wages28,904.50Bad debts816Provision for doubtful debts700Loan from M. Money32,500Capitals: Shoes50,000Socks37,500Current accounts: Shoes2,050Socks600Drawings: Shoes15900Book14,100320,300.5320,300.5i. Stock, 31 December 2008, $35,105ii. Expenses to be accrued: Office Expenses $107.50; Wages $360iii. Depreciate fixtures 15 percent on reducing balance basis, buildings $2,500iv. Reduce provision for doubtful debts to $625v. Partnership salary: $15,000 to Shoes. Not yet enteredvi. Interest on drawings: Shoes $450; Socks $300vii.…On June 30, 2003, two separate proprietorships—Playstation and 3D Gaming—which develop computer games agree to combine their operations and form a partnership. The new partnership will be known as Interplay@. Playstation doesn’t have any assets worth transferring into the new partnership. The owner, G. LeBlanc, agrees to invest $1,000 in cash. 3D Gaming transfers the following assets and liabilities into the partnership at fair market values: Net Book Value Fair Market ValueCash $ 9,000 $ 9,000Accounts receivable 20,000 18,000Allowance for doubtful accounts 1,000 1,500Computer hardware and software 50,000 15,000Accumulated amortization—computer hardware and software 30,000Accounts payable 15,000 15,000Notes payable 25,000 25,000 Instructions1) Prepare a balance sheet for the Interplay@ partnership on June 30, 2003.Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest P200,000 andBrillantes, P300,000. Calamba will devote full time to the business, and Brillantes on part-time only. The following plans forthe division of profits are being considered: a. Equal divisionb. In the ratio of original investmentsc. In the ratio of time devoted to the businessd. Interest of 10% on original investments and the remainder in the ratio of 3:2e. Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, andthe remainder equally.f. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceedsthe salary allowances. Determine the partners’ share in profit or loss for each of the situations above assuming:(1) Profit of P1,500,000(2) Profit of P660,000
