Answer:
Fortune, Inc.
Budgeted Income Statement
For the first quarter, 202x
January February March Total
Sales revenue $1,125,000 $1,375,000 $1,250,000 $3,750,000
Cost of goods sold $630,000 $770,000 $700,000 $2,100,000
Gross profit $495,000 $605,000 $550,000 $1,650,000
S&A expenses:
Rent $14,000 $14,000 $14,000 $42,000Office salaries $75,000 $75,000 $75,000 $225,000Sales comm. $90,000 $110,000 $100,000 $300,000Advertising $168,750 $206,250 $187,500 $562,500Depreciation $40,000 $40,000 $40,000 $120,000EBIT $107,250 $159,750 $133,500 $400,500
Income taxes $32,175 $47,925 $40,050 $120,150
Net income $75,075 $111,825 $93,450 $280,350
The value of a listed call option on a stock is lower when: I. The exercise price is higher. II. The contract approaches maturity. III. The stock decreases in value. IV. A stock split occurs.
Answer: a. I, II, and III only
Explanation:
The exercise price refers to the amount that the person who buys the call option will get to buy the underlying stock at. If this price is high, the profit from buying the stock at maturity will be less so the value of the listed call option reduces.
As the contract approaches maturity, the value will decrease because it will be less volatile as it approaches maturity.
The purpose of buying a call option is so that a profit can be made if the underlying stock increases in value. If the stock decreases in value, the allure of the call option decreases so therefore will the value.
A call bond option is termed as the option that implies the bondholder the right to purchase the bonds at the prevailing price in the market. A buyer of a bond call option in the secondary market forecasts a drop in investment substantial rise in bond prices.
The correct option is a. I, II, and III only
Option a. I, II, and III only is correct because The contract value will decline as it reaches maturation because it will become less unpredictable.
The goal of purchasing a call option is to benefit if the price of the underlying stock rises. The attractiveness of the callable bond falls as the price of bitcoin declines, and the worth of the call option reduces as well.
The exercise price is the price where the individual who acquires a call option will be able to acquire the underlying shares. If this price is too high, the benefit from buying the stock at maturity will be too little, diminishing the value of the specified call option.
To know more about the listed call option, refer to the link below:
https://brainly.com/question/4490636
Small groups of consumers that interact with products or services and give their feedback based on their experiences are known as?
A. Test subjects
B. Focus group
C. Market research audiences
D. Survey takers
Answer:
B. Focus group
Explanation:
Use series of elimination on this one.
Test subjects- No
Market Research Audience- Those are people that watch the tests that you will conduct with your focus group.
Survey takers- Too simple.
Hope that I could help you!
Small groups of consumers that interact with products or services and give their feedback based on their experiences are known as Focus group. Option (b) is correct.
What do you mean by Product?Any good or service you offer to satisfy a customer's need or desire is a product. There are both real and virtual ones. Durable things (such as automobiles, furniture, and computers) and nondurable items are examples of physical products (like food and beverages).
A focus group is a market research technique that involves gathering 6–10 individuals in a space to offer input on a certain commodity, concept, or marketing campaign.
Therefore, Option (b) is correct. Small groups of consumers that interact with products or services and give their feedback based on their experiences are known as Focus group.
Learn more about Product, here;
https://brainly.com/question/22852400
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Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $52,400 April 64,200 May 68,900 Depreciation, insurance, and property taxes represent $9,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. Seventy percent of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Required:Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.
Answer:
Schedule for cash payments is prepared as follows
Explanation:
Expected selling and administrative Cash payment
March April May
Expected expense 52,400 64,200 68,900
Depreciation, insurance, and property tax (9,000) (9,000) (9,000)
Total expected payment 43,400 55,200 59,900
As the 70% of expense are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.
Schedule of cash payments for selling and administrative expenses for March, April, and May is prepared as follows
Schedule March April May
Total expected cash payment 43,400 55,200 59,900
Cash payment in march (43,400x70%) 30,380
Cash payment in march (43,400x30%) 13,020
Cash payment in April (55,200x70%) 38,640
Cash payment in april (55,200x30%) 16,560
Cash payment in may (59,900x70%) 41,930
Total cash payment $30,380 $51,660 $58,490
CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $20,400 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments, compute the amount of maintenance cost allocated to the Baking Department.
Mixing Baking Packaging
Direct costs $ 36,000 $ 30,000 $ 24,000
Sq. ft. of space 2,500 3,750 1,250
a. $272.
b. $816.
c. $10,000.
d. $13,950.
e. $10,200.
Answer: e. $10,200.
Explanation:
Total Square ft. of space;
= 2,500 + 3,750 + 1,250
= 7,500 Sq. ft. of space
Baking Department occupies 3,750 ft² of that space so it will be apportioned a cost of;
= Proportion * total cost
= 3,750/7,500 * 20,400
= $10,200
Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the terms of trade are established as 1 apple for 4 oranges, then: Group of answer choices
Answer:
But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.
Explanation:
Then alpha should produce only 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour.
If Alpha produces oranges there will be a loss because he produces less oranges. But Beta 's choice will not affect the trade.
There are no incentives for Beta to specialize and trade with Alpha.
But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.
Darth Company sells three products. Sales and contribution margin ratios for the three products follow: Given these data, the contribution margin ratio for the company as a whole would be:
Answer: A. 25%
Explanation:
The Contribution margin for the whole company = [tex]\frac{Total Contribution Margin Amounts}{Total Sales}[/tex]
Total Contribution Margin = (0.45 * 25,000) + (0.4 * 40,000) + ( 0.15 * 100,000)
= 9,000+16,000+15,000
= $40,000
Total Sales = 20,000+40,000+100,000
= $160,000
Contribution Margin for the whole Company = [tex]\frac{40,000}{160,000}[/tex]
= 25%
Brown Industries has a debt-equity ratio of 1.5. Its WACC is 9.6 percent, and its cost of debt is 5.7 percent. There is no corporate tax. a. What is the company's cost of equity capital
Answer:
Cost of equity capital is 0.122 or 12.2%
Explanation:
The WACC or weighted average cost of capital is the cost of a company's capital structure. The capital structure may contain one, two or all of the following components namely debt, preferred stock and common equity. The WACC is calculated by taking the weighted average of the each components cost.
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
w represents the weight of each componentr represents the cost of each componentD, P and E represent debt, preferred stock and common equity respectivelyTo calculate the cost of equity capital, we first need to find out the weight of each component in the capital structure.
debt to equity = 1.5
So, debt = 1
equity = 1.5
Total assets = 1 + 1.5 = 2.5
wD = 1/2.5 = 0.4
wE = 1.5/2.5 =0.6
Using the WACC formula,
0.096 = 0.4 * 0.057 + 0.6 * rE
0.096 = 0.0228 + 0.6 * rE
0.096 - 0.0228 = 0.6 * rE
0.0732 / 0.6 = rE
rE = 0.122 or 12.2%
Truckload carriers offer which of the following? a. Any size shipment that fits in a truck b. Direct door-to-door service between two locations for a single shipper c. Extra services like assembly d. All of the above e. Only a and b
Answer:
B.
Explanation:
A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer
The opportunity cost of going to college for a student receiving a scholarship A. is zero because she does not have to pay tuition. B. is the expenses for food and clothing that she purchases while in college. C. is the income that she would have earned if she did not go to college. D. is the risk of dropping out.
Answer:
C. is the income that she would have earned if she did not go to college.
Explanation:
Opportunity cost is the gain to a person that is foregone by selecting one option over all other options available to himself.
Since in the question, it is mentioned that the opportunity cost for students earning a scholarship go to college
So according to the given scenario, the option c is correct
Hence, all the other options are incorrect
Madison Company's perpetual inventory records indicate that $875,300 of merchandise should be on hand on October 31. The physical inventory indicates that $781,900 is actually on hand.
Required:
Journalize the adjusting entry for the inventory shrinkage for madison company for the year ended October 31.
Answer:
Dr Cost of Goods Sold $93,400
Cr Inventory $93,400
Explanation:
The closing inventory in perpetual inventory is $875,300 which is recorded in excess of its inventory in hand $781,900 which means that additional $93,400 must be adjusted in Cost of Goods Sold.
The journal entry on October 31, 2020, is given as under:
Dr Cost of Goods Sold $93,400
Cr Inventory $93,400
Exercise 16-18 Indigo Inc. presented the following data. Net income$2,410,000 Preferred stock: 52,000 shares outstanding, $100 par, 8% cumulative, not convertible5,200,000 Common stock: Shares outstanding 1/1729,600 Issued for cash, 5/1296,400 Acquired treasury stock for cash, 8/1152,400 2-for-1 stock split, 10/1 Compute earnings per share.
Answer:
EPS = $11.74 per share
Explanation:
earnings per share (EPS) = (net income - preferred dividends) / weighted average shares outstanding
net income = $2,410,000
preferred dividends = 52,000 x $100 x 8% = $416,000
weighted average shares outstanding:
beginning common stocks (29,600 x 257/274) x 2 = 55,527 + (55,527 x 91/365) = 69,370.72new stocks issued (96,400 x 142/274) x 2 = 99,918.25 + (99,918.25 x 91/365) = 124,819.38treasury stocks (-52,400 x 51/274) x 2 = -19,506.57 + (-19,506.57 x 91/365) = -24,369.85total = 169,820.25 ≈ 169,820 weighted stocksEPS = ($2,410,000 - $416,000) / 169,820 stocks = $11.74
Since the dates are a little confusing, I assumed 1/17 for beginning common stocks, 5/12 for issuance of new stocks, 8/11 for acquiring treasury stocks, and 10/1 for stock split. From January 1 to October 1, there are 274 days on a regular 365 day calendar year.
A pharmaceutical research firm prohibits the employees who leave the firm from soliciting business from former customers or clients for a period of two years. This best exemplifies the _____ clause.
Answer:
Non-piracy.
Explanation:
If a pharmaceutical research firm prohibits the employees who leave the firm from soliciting business from former customers or clients for a period of two years. This best exemplifies the non-piracy clause.
A non-piracy clause is a legal framework which provides protection for companies from an ex employee who has left. This clause states that ex employees are prohibited from soliciting business from former customers or clients either directly or indirectly for a period of two years.
For instance, if Joyce works for XYZ pharmaceutical company that uses a non-piracy clause and later dropped a resignation letter or was laid off for a disciplinary action, she's prohibited from taking contracts from XYZ' customers for a period of two (2) years.
A growing population encourages economic growth as it creates a larger workforce. Suppose a surge in immigration increases a country's total population and its overall economic output increases. As a result, the country's real GDP increases from $304,000 to $316,500. What is the percent change in real GDP
Answer:
4.11%
Explanation:
the percentage change in real GDP = [(new real GDP - old real GDP) / old real GDP] x 100 = [($316,500 - $304,000) / $304,000] x 100 = 4.11%
Generally a surge in immigration will result in both higher nominal and real GDP, but what should be more important is how real GDP per capita changes. If real GDP per capita increases, then the inflow was positive and made the economy grow for better. If real GDP per capita decreases, even if total real GDP increases, then the economy is not doing better.
Ross Island Co. issues 10,000 shares of no-par value preferred stock for cash at $120 per share. The journal entry to record the transaction will consist of a debit to Cash for $1,200,000 and a credit (or credits) to:
Answer:
Please see answer below
Explanation:
The journal entry to record the issuance of 10,000 shares of no-par value preferred stock for cash at $120 per shares has a debit to cash and a credit to preferred stock for $1,200,000 ( 10,000 shares × issue price of $120 per share )
Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.00 % B 2 7.00 % C 3 7.99 % D 4 9.41 % E 5 10.70 % The expected 1-year interest rate 4 years from now should be _________.
Answer:
16.01%
Explanation:
The expected 1-year interest rate 4 years from now is determined using the below formula:
The expected 1-year interest rate 4 years=(1+YTM5)^5/(1+YTM4)^4-1
YTM5 is the yield to maturity in year 5 i.e 10.70%
YTM4 is the yield to maturity in year 4 i.e 9.41%
The expected 1-year interest rate 4 years=(1+10.70%)^5/(1+9.41%)^4-1
The expected 1-year interest rate 4 years=16.01%
Grouper Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $22,410 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $467 per week, payable monthly.
2 Paid office rent for the month $1,120.
3 Purchased architectural supplies on account from Burmingham Company $1,618.
10 Completed blueprints on a carport and billed client $2,365 for services.
11 Received $871 cash advance from M. Jason to design a new home.
20 Received $3,486 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,868.
30 Paid $373 to Burmingham Company for accounts payable due.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
April 1.
Cash $22,410 (debit)
Common Stock $22,410 (credit)
April 1.
Salaries Expense $1,868 (debit)
Salaries Payable $1,868 (credit)
April 2.
Rent Expense $1,120 (debit)
Cash $1,120 (credit)
April 3.
Supplies $1,618 (debit)
Account Payable : Burmingham Company $1,618 (credit)
April 10.
Accounts Receivables $2,365 (debit)
Service Revenue $2,365 (credit)
April 11.
Cash $871 (debit)
Unearned Revenue $871 (credit)
April 20.
Cash $3,486 (debit)
Service Revenue $3,486 (credit)
April 30.
Salaries Payable $1,868 (debit)
Cash $1,868 (credit)
April 1.
Account Payable : Burmingham Company $1,618 (debit)
Cash $1,618 (credit)
Explanation:
Note the following :
1.Revenue received but not earned is recorded in a liability account known as Unearned Revenue.This account will subsequently be de-recognized as the revenue is earned.
2. When the Suppliers are paid amounts owing to them, de-recognize the Accounts Payable Account of those suppliers and also de-recognize the Cash Assets.
SuspendHers Inc., a maker of fashionable belts and accessories for women, plans to expand in the EU marketplace. To do so, the EU requires the company to
Answer:
Certify its product under ISO 9000.
Explanation:
ISO 9000 refers to the International Organization for Standardization that focused on the management of the quality related to the product and services by complying with the documents required so that the quality could be maintained. It is to be applied with any industry whether it is small, middle or large
Therefore while making fashionable belts and accessories for women and planned to diversify it that required the ISO 9,000 and the same is to be considered
Western Electric has 26,000 shares of common stock outstanding at a price per share of $67 and a rate of return of 13.60 percent. The firm has 6,700 shares of 6.60 percent preferred stock outstanding at a price of $89.00 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $368,000 and currently sells for 105 percent of face. The yield to maturity on the debt is 7.72 percent. What is the firm's weighted average cost of capital if the tax rate is 35 percent?
Answer:
Weighted average cost of capital= 11.03%
Explanation:
The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.
To calculate the weighted average cost of capital, follow the steps below:
Step 1: Calculate cost of individual source of finance:
Cost of Equity= 13.6%
After-tax cost of debt:
= (1- T) × before-tax cost of debt
= 7.72%× (1-0.35)= 5.018 %
Cost of preferred stock costs
= Div/Price × 100 = (6.60%× 100)/89× 100 =7.42%
Step 2 : Market value of all the sources of funds
Equity = $67×26,000 =1,742,000
Preferred stock = 89.00 × 6,700 = $596,300
Debt- 105/100 × 368,000 = $386,400
Step 3; Work out weighted average cost of capital (WACC)
Source Cost Market value Cost × Market value a b c b× c
Equity 13.6% $1,742,000 236,912
Preferred stock 7.42% $596,300 = 44,245.46
Debt 5.018 % 386400 = 19,389.55
Total 2,724,700 300,547.01
WACC = (300,547.01/ 2,724,700) × 100 = 11.03%
Weighted average cost of capital= 11.03%
Scenario: Home Monopolist) A monopolist faces a demand curve given by P = 60 2Q and has total costs given by TC = Q2. Its marginal revenue is MR = 60 4Q and its marginal cost is MC = 2Q. Compared with the no-trade equilibrium, consumer surplus ___________ when the monopolist engages in free trade.
Answer:
2Q
Explanation:
Economy equilibrium is where MC = MR.
Marginal cost equals marginal return when the supply and demand is linear. Consumer surplus is the additional amount that a consumer is willing to pay for the goods and services. Here MC = 2Q and MR = 60 + 4Q. Here consumer is paying 2Q additional in the equation of marginal return.
What is the approximate yield to maturity and the exact yield to maturity (use a calculator) for the $1,000 semi-annual bond? Assume this is issued in the United States: 10 years to maturity, 6 percent coupon rate, current price is $950.
Answer:
6.67% and 6.694%
Explanation:
The computation of the approximate yield to maturity and the exact yield to maturity is shown below:
For Approximate yield to maturity it is
= 2 × ((Face value - current price) ÷ (2 × time period) + face value × coupon rate ÷ 2) ÷ (Face value + current price) ÷ 2)
=2 × (($1,000 - $950) ÷ (2 × 10) + $1,000 × 6% ÷ 2) ÷ (($1,000 + $950) ÷ 2)
= 6.67%
Now
the Exact yield to maturity is
= RATE(NPER,PMT,-PV,FV)
= RATE (10 × 2, 6% × $1000 ÷ 2,-$950,$1,000) × 2
= 6.694%
On April 29, Welllington Co. paid $1,760 to repair the transmission on one of its delivery vans. In addition, Welllington paid $52 to install a GPS system in its van.
Journalize the entries for the transmission and GPS system expenditures. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSGarcia Associates Co.General Ledger
ASSETS
110 Cash
111 Petty Cash
112 Accounts Receivable
114 Interest Receivable
115 Notes Receivable
116 Merchandise Inventory
117 Supplies
119 Prepaid Insurance
120 Land
123 Delivery Van
124 Accumulated Depreciation-Delivery Van
125 Equipment
126 Accumulated Depreciation-Equipment
130 Mineral Rights
131 Accumulated Depletion
132 Goodwill
133 Patents
LIABILITIES
210 Accounts Payable
211 Salaries Payable
213 Sales Tax Payable
214 Interest Payable
215 Notes Payable
EQUITY
310 Owner, Capital
311 Owner, Drawing
312 Income Summary
REVENUE
410 Sales
610 Interest Revenue
620 Gain on Sale of Delivery Van
621 Gain on Sale of Equipment
EXPENSES
510 Cost of Merchandise Sold
520 Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Delivery Van
523 Delivery Expense
524 Repairs and Maintenance Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Equipment
533 Depletion Expense
534 Amortization Expense-Patents
535 Insurance Expense
536 Supplies Expense
539 Miscellaneous Expense
710 Interest Expense
720 Loss on Sale of Delivery Van
721 Loss on Sale of Equipment
Answer:
April 29,
DR Accumulated Depreciation - Delivery Van $1,760
CR Cash $1,760
(To record repair of van)
April 29,
DR Delivery Van $52
CR Cash $52
(To record installation of GPS system in Van)
Explanation:
The transmission being faulty in the Van is part of the depreciation of the van and so when it is fixed, it reduces the depreciation of the van. The amount needs to be debited to the Accumulated Depreciation Account to signal that it is a reduction.
Installing a new GPS in a Van is an additional benefit to the van that will last for a period of more than a year hence it should be capitalised and added to the cost of the Delivery Van.
The financial statements of Burnaby Mountain Trading Company are shown below. Income Statement 2017 Sales $7,000,000 Cost of Goods Sold 5,000,000 Gross Profit $2,000,000 Selling and Administrative Expenses 1,700,000 EBIT $300,000 Interest Expense 50,000 Income before Tax $250,000 Taxes 100,000 Net Income $150,000 Burnaby Mountain Trading Company 2017 2016Cash $90,000 $80,000 Accounts Receivable 810,000 800,000 Inventory 800,000 720,000 Total Current Assets $1,700,000 $1,600,000 Fixed Assets 2,600,000 2,400,000 Total Assets $4,300,000 $4,000,000 Accounts Payable $500,000 $400,000 Bank Loans 100,000 100,000 Total Current Liabilities $600,000 $500,000 Long-term Bonds 400,000 300,000 Total Liabilities $1,000,000 $800,000 Common Stock (200,000 shares) 500,000 500,000 Retainded Earnings 2,800,000 2,700,000 Total Equity $3,300,000 $3,200,000 Total Liabilities and Equity $4,300,000 $4,000,000 The firm's current ratio for 2017 is _________.a. 1.3b. 1.5c. 1.69d. 2.83
Answer:
d. 2.83
Explanation:
Note: The financial statement in the question are merged together. They are therefore sorted before answering the question. See the attached excel file for the full question with the sorted financial statement.
The explanation to the answer is now as follows:
The current ratio is a liquidity ratio that is used in measuring whether a company has adequate resources to meet its short-term obligations or pay its liabilities from its current assets.
The current ratio provides a comparison current assets to current liabilities of a company and it can be calculated using the following formula:
Current ratio = Total current assets / Total current liabilities ................. (1)
From the 2017 balance sheet of Burnaby Mountain Trading Company, we have:
Total current assets = $1,700,000
Total current liabilities = $600,000
Substituting the values for Total current assets and Total current liabilities into equation (1), we have:
Current ratio = $1,700,000 / $600,000 = 2.83
Therefore, The firm's current ratio for 2017 is 2.83. That is, the correct option is option d. 2.83.
This indicates that the firm has more than enough current assets to pay off 2.83 or 283% of its current liabilities.
DeLong Corporation was organized on January 1, 2017. It is authorized to issue 14,500 shares of 8%, $100 par value preferred stock, and 450,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share.
Mar. 1 Issued 5,150 shares of preferred stock for cash at $110 per share.
Apr. 1 Issued 23,500 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $81,500.
May 1 Issued 84,000 shares of common stock for cash at $5.00 per share.
Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $39,500 for services performed in helping the company organize.
Sept.1 Issued 11,500 shares of common stock for cash at $7 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $111 per share.
Journalize the transactions.
Answer:
Jan. 10
Cash $507,00 (debit)
Common Stock $507,00 (credit)
Mar 1
Cash $566,500 (debit)
Preferred Sock $515,000 (credit)
Share Premium : Preferred Stock $51,500 (credit)
April 1
Land $91,000 (debit)
Common Stock $91,000 (credit)
May 1
Cash $420,000 (debit)
Common Stock $420,000 (credit)
Aug 1
Legal Expenses : Attorneys bill $39,500 (debit)
Common Stock $39,500 (credit)
Sept 1
Cash $80,500 (debit)
Common Stock $80,500 (credit)
Nov 1
Cash $222,000 (debit)
Preferred Sock $200,000 (credit)
Share Premium : Preferred Stock $22,000 (credit)
Explanation:
Common Stocks are at no par value:
This means that ,
1.When Common Stocks are Issued, the value is the issue price there is no share premium reserve on it.
2. For consideration paid in Common Stocks, value of stocks would be the same as the cost at initial recognition. For example the Purchase of Land on April 1. Initial recognition is at Asking Price of $91,000. Hence common stocks are issued at $91,000.
Preference Stocks are at $100 par
This means that,
1.Any issue of Preference Stock made in excess of par value is accounted in the Preference Share Premium Reserve.
The following data were reported by a corporation: Authorized shares 20,000 Issued shares 15,000 Treasury shares 3,000 The number of outstanding shares is:
Answer:
12,000
Explanation:
The following data was reported for an organisation
Authorized shares is 20,000
Issued shares is 15,000
Treasury shares is 3,000
Therefore, the number of outstanding shares can be calculated as follows
Number of outstanding shares= Issued stock-Treasury stock
= 15,000-3,000
= 12,000
Hence the number of outstanding shares is 12,000
Bobby is a self-employed taxpayer reporting his business income on Schedule C (Form 1040 or 1040-SR). Identity thieves gained access to his business checking account and stole $10,000. After completing Form 4684, Casualties and Thefts, where does Bobby report this on his tax return?
Schedule C (Form 1040 or 1040-SR), line 2.
Bobby cannot deduct the loss.
Form 4797, line 14.
Schedule A (Form 1040 or 1040-SR), line 16.
Answer:
Bobby cannot deduct the loss
Explanation:
Bobby cannot claim deductions for theft on his property because from 2018 to 2025 they are not allowed as itemized deductions unless they are federally declared disasters in which case he would still need to have to complete the form 4684 and use the form 1040 schedule A to report his claims
Stock in Daenerys Industries has a beta of 1.05. The market risk premium is 7 percent, and T-bills are currently yielding 3.4 percent. The company’s most recent dividend was $2.35 per share, and dividends are expected to grow at an annual rate of 4.1 percent indefinitely. If the stock sells for $43 per share, what is your best estimate of the company’s cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
The best estimate of Cost of equity is 10.27%
Explanation:
Cost of equity as per CAPM= Risk free rate + Beta * Market risk premium
Cost of equity as per CAPM = (3.4%+ (1.05*7%)
Cost of equity as per CAPM = 0.034 + 1.05*0.07
Cost of equity as per CAPM = 0.034 + 0.0735
Cost of equity as per CAPM = 0.1075
Cost of equity as per CAPM =10.75%
Note: CAPM is capital asset pricing model
Cost of equity as per growth model = (Recent Dividend (D1) / Current price) + Growth rate
= (2.35 * 1 + 4.1%) / 43 + 41%
= (2.35 * 1.041) / 43 + 0.041
= 2.4464 / 43 + 0.041
= 0.05689 + 0.041
= 0.09789
= 9.7891%
Best estimate of Cost of equity = Average of Cost of equity as per CAPM and Cost of equity as per growth model
= (10.75+9.789186) / 2
= 20.5391 / 2
= 10.2695
= 10.27%
Hence, the best estimate of Cost of equity is 10.27%
Why do mobile phone manufacturers (Apple, Google, and BlackBerry) want to track where their customers go?
Answer:
The cell phone manufacturers (Apple, Google, and BlackBerry) want to track where their customers go because they collect this data for advertising and marketing purposes. ... It does so by connecting to a cellular network provided by a mobile phone operator, allowing access to the public telephone network.
i think hope it helps
Explanation:
False Value Hardware began 2021 with a credit balance of $32,900 in the refund liability account. Sales and cash collections from customers during the year were $730,000 and $690,000, respectively. False Value estimates that 7% of all sales will be returned. During 2021, customers returned merchandise for credit of $18,000 to their accounts.
Answer:
Closing balance = $66,OOO
Explanation:
DATA
Opening balance in allowance for sales return = 32,900
Sales = 730,000
Cash Collection= 690,000
Estimated sales return = 7% of all sales = 51100
Merchandise return for credit = 18,000
We can calculate the closing balance in the allowance for sales return account by adding estimated returns and deducting merchandise return from opening balance.
Closing balance = Opening balance + Estimated sales return - Merchandise return for credit
Closing balance = $32,900 + $51,100 - $18,000
Closing balance = $66,OOO
A company earned $7,605 in net income for October. Its net sales for October were $19,500. Its profit margin is:
Answer: 39%
Explanation:
From the question, we are informed that company earned $7,605 in net income for October and that its net sales for October were $19,500.
To calculate its profit margin, we have to divide the net income by the net sales. This will be:
= 7605/19500
= 0.39
= 39%
A corporate bond pays 3% of its face value once per year. If this $4 comma 000 10-year bond sells now for $4 comma 450, what yield will be earned on this bond? Assume the bond will be redeemed at the end of 10 years for $4 comma 000.
Answer:
The answer is 1.76%
Explanation:
N(Number of periods) = 10 years
I/Y(Yield to maturity) = ?
PV(present value or market price) = $4,450
PMT( coupon payment) = $120 (7 percent x $4,000)
FV( Future value or par value) = $4,000.
We are using a Financial calculator for this.
N= 10; PV = -4,450; PMT = 120; FV= 4,000;
CPT I/Y= 1.76
Therefore, the Yield-to-maturity of the bond is bond is 1.76%