# Gunther earned a 62.5 percent return on a stock that he purchased one year ago. The stock is now worth \$12, and he received a dividend of \$1 during the year. How much did Gunther originally pay for the stock?

Originally pay for the stock = \$8

Explanation:

Given:

Total return = 62.5%

Value of stock (after 1 year) = \$12

Dividend during the year = \$1

Originally pay for the stock = ?

Computation:

Originally pay for the stock = \$8

## Related Questions

In a period of rising prices, the inventory method which tends to give the highest reported net income is:a. base stock.
b. first-in, first-out.
c. last-in, first-out.
d. weighted-average.

b. first-in, first-out.

Explanation:

Generally, there are three methods for estimating the inventory shown below:

1. First-in-first, the company is selling the old products in this way than the new ones, which means first selling the old products and then selling the new ones

2. Weighted average method: Weighted cost is measured by considering the total revenue and total purchase

3. Last-in-first-out: Contrary to the first-in-first-out process, the first sale of new goods, then selling of old goods.

4. Base stock: The process by which the orders of the consumer are fulfilled by holding the less inventory

In the FIFO method, the highest ended inventory results in the lower cost of goods sold at the highest net profits.

In a period of rising prices, the first-in, first-out (FIFO) inventory method gives the highest reported net income because it records the oldest, less costly inventory as cost of goods sold, leaving the more expensive recent inventory on hand.

### Explanation:

The inventory method which tends to give the highest reported net income in a period of rising prices is first-in, first-out (FIFO). The FIFO method assumes that the earliest goods purchased are the first to be sold. During a period of rising prices, the oldest inventory, which cost less, is recorded as cost of goods sold, leaving the newer, more costly inventory on hand. As a result, the cost of goods sold (an expense) would be lower, and, therefore, net income would be higher. Contrarily, the Last-in, first-out (LIFO) method would tend to show a lower net income in a period of rising prices because the more expensive recent inventory would be recorded as cost of goods sold first.

Similarly, the base stock and weighted-average methods may not reflect the highest net income in a period of rising prices as they take different approaches in calculating inventory and cost of goods sold.

brainly.com/question/33217850

#SPJ6

​________ is an Internet marketing strategy used to increase the quantity and quality of traffic from search​ engines, often by improving the​ site's position in result lists.A.
Search engine optimization
B.
Search engine marketing
C.
A clickthrough rate
D.
Geotargeting
E.
Content farming

A

Explanation:

I'm having a difficult time with my accounting workbook. I post the adjusting entries, but my balance sheet never equalizes. Can someone point me where i'm going wrong? 1. A supplier shipped \$3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for \$175, all dated 12/29/17. Goods were shipped FOB supplier’s warehouse.
2. At 12/31/17, Peyton has \$200 worth of merchandise on consignment at Bruno’s House of Bacon.
3. On 12/23/17, Peyton received a \$1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January.
4. On 12/03/2017, a mixer with cost of \$2,000, accumulated depreciation \$1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay \$700 in January, 2018, for accidental destruction.
5. Note about later borrowing financials will show loan from parents repaid and use of bank financing.
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Dr Cr ref Dr Cr ref Dr Cr
Cash 67,520.04 67,520.04
Accounts Receivable 68,519.91 68,519.91
Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70
Merchandise Inventory 1,238.07 1,238.07
Consignment Inventory Prepaid Rent 2,114.55 2,114.55
Prepaid Insurance 2,114.55 2,114.55
Misc. Supplies 170.49 170.49
Baking Equipment 14,000.00 14,000.00
Accumulated Depreciation 1,606.44 1,606.44
Customer Deposit - Accounts Payable 20,262.11 20,262.11
Wages Payable 3,383.28 3,383.28
Interest Payable 211.46 211.46
Notes Payable 5,000.00 5,000.00
Common Stock 20,000.00 20,000.00
Beginning Retained earnings 50,144.84 50,144.84
Dividends 105,000.00 105,000.00
Bakery Sales 327,322.55 327,322.55
Merchandise Sales 1,205.64 1,205.64
Cost of Goods Sold - Baked 105,834.29 105,834.29
Cost of Goods Sold - Merchandise 859.77 859.77
Rent Expense 24,549.19 24,549.19
Wages Expense 10,670.72 10,670.72
Misc. Supplies Expense 3,000.46 3,000.46
Misc. Expense 1,363.84 1,363.84
Depreciation Expense 677.86 677.86
Insurance Expense 1,091.08 1,091.08
Interest Expense 818.31 818.31
Telephone Expense 490.98 490.98
Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32

PEYTON APPROVED

TRIAL BALANCE

As of December 31, 2017

Trial balance             Entries         Trial balance

Dr                Cr  ref   Dr         Cr  ref   Dr            Cr

Cash                          67,520.04           3   1,000              68,520.04

Accounts Receivable 68,519.91                                         68,519.91

Other Receivable -

Insurance Baking

Supplies                  15,506.70                                         15,506.70

Merchandise

Inventory                  1,238.07             1  3,175             1     4,413.07

Consignment

Inventory                                            2   200             2      200

Prepaid Rent             2,114.55                                             2,114.55

Prepaid Insurance    2,114.55                                             2,114.55

Misc. Supplies             170.49                                               170.49

Baking Equipment 14,000.00              4  2,000          4 12,000.00

Accumulated Depreciation   1,606.44 4                      4                    406.44

Customer Deposit

- Accounts Payable            20,262.11                                           20,262.11

Wages Payable                     3,383.28                                            3,383.28

Interest Payable                        211.46                                                211.46

Notes Payable                     5,000.00                                           5,000.00

Common Stock                 20,000.00                                        20,000.00

Beginning Retained

earnings                           50,144.84                                          50,144.84

Dividends                        105,000.00                                       105,000.00

Bakery Sales                   327,322.55                                      327,322.55

Merchandise Sales              1,205.64                                           1,205.64

Cost of Goods

Sold - Baked 105,834.29                                         105,834.29

Cost of Goods

Sold -

Merchandise    859.77                                                 859.77

Rent Exp.       24,549.19                                            24,549.19

Wages Exp.   10,670.72                                             10,670.72

Misc. Supplies

Expense       3,000.46                                              3,000.46

Expense       2,045.77                                               2,045.77

Misc.

Expense      1,363.84                                                1,363.84

Depreciation

Expense        677.86                                                  677.86

Insurance

Expense      1,091.08                                                1,091.08

Expense     1,549.74                                                 1,549.74

Interest

Expense       818.31                                                     818.31

Telephone

Expense      490.98                                                   490.98

Gain/Loss on

disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32

Explanation:

a) Data and Calculations:

PEYTON APPROVED

TRIAL BALANCE

As of December 31, 2017

Dr Cr ref Dr Cr ref Dr Cr

Cash 67,520.04 67,520.04

Accounts Receivable 68,519.91 68,519.91

Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70

Merchandise Inventory 1,238.07 1,238.07

Consignment Inventory Prepaid Rent 2,114.55 2,114.55

Prepaid Insurance 2,114.55 2,114.55

Misc. Supplies 170.49 170.49

Baking Equipment 14,000.00 14,000.00

Accumulated Depreciation 1,606.44 1,606.44

Customer Deposit - Accounts Payable 20,262.11 20,262.11

Wages Payable 3,383.28 3,383.28

Interest Payable 211.46 211.46

Notes Payable 5,000.00 5,000.00

Common Stock 20,000.00 20,000.00

Beginning Retained earnings 50,144.84 50,144.84

Dividends 105,000.00 105,000.00

Bakery Sales 327,322.55 327,322.55

Merchandise Sales 1,205.64 1,205.64

Cost of Goods Sold - Baked 105,834.29 105,834.29

Cost of Goods Sold - Merchandise 859.77 859.77

Rent Expense 24,549.19 24,549.19

Wages Expense 10,670.72 10,670.72

Misc. Supplies Expense 3,000.46 3,000.46

Misc. Expense 1,363.84 1,363.84

Depreciation Expense 677.86 677.86

Insurance Expense 1,091.08 1,091.08

Interest Expense 818.31 818.31

Telephone Expense 490.98 490.98

Gain/Loss on disposal of equipment 429,136.32 429,136.32 - - 429,136.32 429,136.32

b) The adjustments are made in the Adjusting entries column and referenced accordingly, while the effect is reflected in the adjusted trial balance column.

Tell me tree critical risk that organization are likely to face in determination of requirement

On January 1 st, you make plans to travel to Switzerland the following summer. The direct quote for Swiss francs is \$0.30.Since it will be a short trip, you believe \$3000 in spending money will be sufficient. On June 1 st, the direct quote for Swiss francs is \$0.40.As a result, How much Swiss francs will buy your \$3000.

On January 1st, the \$3,000 could buy 10,000 Swiss francs (3,000/0.3).

On June 1st, the \$3,000 would buy 7,500 Swiss francs (3,000/0.4).

Explanation:

On January 1st, each Swiss francs could only purchase \$0.30 while on June 1st, each Swiss francs could purchase \$0.40.

These show that the Swiss francs had appreciated in value relative to the US Dollars with a positive change of 33%.  Therefore, the dollar had weakened against the Swiss francs by the same rate.

7500 Swiss francs

Explanation:

Working

January 1, Swiss francs = \$0.3

\$3000 will by 3000/0.3 = 10,000 Swiss francs.

June 1 , Swiss Francs = \$ 0.4

\$3000 will buy 7500 Swiss francs.

This also mean that in January 3.33 Swiss francs will buy 1 \$

In June 1 , 2.5 Swiss francs will buy one dollar.

This shows that Swiss francs has appreciated in value against dollar over the months

Vilas Company is considering a capital investment of \$183,600 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be \$10,557 and \$51,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment.Required:
a. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)
b. Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.52%)
c. Using the discounted cash flow technique, compute the net present value.

Payback period    = 3.6  years

Annual rate of return = 11.50%

NPV  = 243.59

Explanation:

The payback period: The estimated number of years it will take the initial cost to be recouped.

Payback period= initial cost/ Net cash inflow

= 183,600/51,000

= 3.6  years

Annual rate of return is the average annual income as a percentage of average investment

Annual rate of return = annual net income/ average investment

Average investment =( Initial,cost + scrap value)/2

= (183,600 + 0)/2 = 91,800

Annual rate of return = (10,557/91,800)× 100

= 11.50%

Net Present Value = The present value of cash inflow less the initial cost

PV of cash inflow = A × (1- (1+r)^(-n))/r

= 51,000 × (1- (1.12)^(-5)/0.12

=  183,843.59

NPV = 183,843.59 - 183,600

= 243.59