Answer:
The disagreement between these economists is most likely due to .
differences between perceptions versus reality.
Explanation:
A bailout occurs when the government provides capital resources to a distressed business or failing company, which it considers to be too big to fail. The purpose is to prevent the consequences of the downfall of such an entity, which may include bankruptcy, default on its financial obligations, economic impact on the wider society. Most bailouts are made for the benefit of the society rather than the business entity. The mindset from which two economists can perceive the reality of bailouts will always differ.
The trial balance of D. Savage Company at the end of its fiscal year, August 31, 2017, includes these accounts: Inventory $17,200, Purchases $149,000, Sales Revenue $190,000, Freight-In $5,000, Sales Returns and Allowances $3,000, Freight-Out $1,000, and Purchase Returns and Allowances $2,000. The ending merchandise inventory is $23,000. Prepare a cost of goods sold section for the year ending August 31 (periodic inventory).
Answer and Explanation:
The preparation of the cost of goods sold is presented below:
Cost of goods sold statement
Opening inventory $17,200
Add:
Purchase $149,000
Freight in -$4,350
Less:
Purchase Return -$2,000
Less:
Closing inventory -$23,000
Cost of goods sold $136,850
A firm has total assets of $162,000, long-term debt of $46,000, stockholders' equity of $95,000, and current liabilities of $21,000. The dividend payout ratio is 60 percent and the profit margin is 8 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need if the current sales of $150,000 are projected to increase by 10 percent
Answer:
$8,820
Explanation:
The percentage of sales formula for computing the funding requirement is stated thus:
AFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x retention ratio)
AFN=additional funds=unknown
A-current level of total assets=$162,000
S- current sales $150,000
=Δ Sales=Change in sales=increase in sales=$150,000*10%=$15000
L-spontaneous liabilities=current liabilities=$21,000
PM-profit margin =8%
retention ratio=1-dividend payout ratio=1-60%=40%
FS-forecast sales =$150,000+$15000=$165,000
AFN =($162,000/$150,000)*$15000))-($21,000/$150,000)*$15000-(8%*$165,000*40%)
AFN =$16,200-$2,100-$5280
AFN=$8,820
On May 10, 2020, Splish Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,060 on July 15, 2020. The cost of the goods is $1,380. Splish delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Splish related to this contract. Either party may terminate the contract without compensation until one of the parties performs.
Answer:
May 15, 2020
No Entry
June 15, 2020
Debit: Account Receivable 2,060
Credit Revenue 2,060
Debit COGS 1,380
Credit Inventory 1,380
July 15, 2020
Debit Cash 2,060
Credit Account Receivable 2,060
Explanation:
Preparation of the journal entries for Splish related to this contract.
May 15, 2020
No Entry
June 15, 2020
Debit: Account Receivable 2,060
Credit Revenue 2,060
Debit COGS 1,380
Credit Inventory 1,380
July 15, 2020
Debit Cash 2,060
Credit Account Receivable 2,060
All-Star Automotive Company experienced the following accounting events during Year 1: Performed services for $14,300 cash. Purchased land for $7,300 cash. Hired an accountant to keep the books. Received $33,000 cash from the issue of common stock. Borrowed $8,600 cash from State Bank. Paid $4,300 cash for salary expense. Sold land for $8,600 cash. Paid $3,300 cash on the loan from State Bank. Paid $4,500 cash for utilities expense. Paid a cash dividend of $1,300 to the stockholders.
Answer:
Missing word "Indicate how each of these events would be classified on the statement of cash-flow, OA, IA, FA or NA"
EVENTS CLASSIFICATION
Performed services for $14,300 cash. Operating activities
Purchased land for $7,300 cash. Investing activities
Hired an accountant to keep the books. Not applicable
Received $33,000 cash from the issue Financing activities
of common stock.
Borrowed $8,600 cash from State Bank. Financing activities
Paid $4,300 cash for salary expense. Operating activities
Sold land for $8,600 cash. Investing activities
Paid $3,300 cash on the loan from Financing activities
State Bank.
Paid $4,500 cash for utilities expense. Operating activities
Paid a cash dividend of $1,300 to Financing activities
the stockholders.
Chapter 1 5. Using the present and future value tables in Appendix A, the appropriate calculations on the Garman/Forguecompanion website, or a financial calculator, calculate the following: (a)The amount a person would need to deposit today to be able to withdraw $6,000 each year for ten years from an account earning 6 percent. (b)A person is offered a gift of $5,000 now or $8,000 five years from now. If such funds could be ex-pected to earn 8 percent over the next five years, which is the better choice
Answer:
a. Present value = PV(-PMT, N, I/Y)
Present value = PV(-6000, 10, 6)
Present value = $44,160.52
So, the amount to deposit today = $44,160.52
B: Present Value of choice 1 = $5,000
Choice 2: Present value = PV(FV, N, I/Y)
Present value = PV(8000, 5, 8)
Present value = $5,444.67
Hence, Choice 2 is the better choice since it has higher present value ($5,444.67 > $5,000)
2 Which of the following are characteristics of high self-esteem? O Does not like to ask others for help O Tends to be competitive Pride in personal accomplishments O Fear of the unknown Next > 3/41 complete ting
Answer:
B trends to be competitive pride in person
On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $5,520 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2019. Taylor should recognize revenue in 2018 in the amount of:_____.
a. $900.
b. $2,700.
c. $0.
d. $5,400.
Answer: 920
Explanation:
Since the transaction took place in November, we should note that revenue should be recognized for 2 months by Taylor.
The amount that Taylor should recognize as revenue in 2018 will be:
= 5520/12 × 2
= 460 × 2
= 920
In a month, Carlos can produce a maximum of either 30 bushels of pears or 15 bushels of apples, or any linear combination in between. Similarly, Donna can produce a maximum of either 20 bushels of pears or 5 bushels of apples, or any linear combination in between.
a. What is the opportunity cost for Carlos to produce one more bushel of apples in terms of pears?
b. What is the opportunity cost for Donna to produce one more bushel of apples in terms of pears?
c. What would Donna and Carlos agree to as acceptable terms of trade?
Answer:
a. What is the opportunity cost for Carlos to produce one more bushel of apples in terms of pears?
opportunity cost to produce 1 more bushel of apples = 30 / 15 = 2 bushels of pears
b. What is the opportunity cost for Donna to produce one more bushel of apples in terms of pears?
opportunity cost to produce 1 more bushel of apples = 20 / 5 = 4 bushels of pears
c. What would Donna and Carlos agree to as acceptable terms of trade?
Donna has a comparative advantage in the production of pears, so she should produce pears and exchange them for apples produced by Carlos.
Any range between 1-2 pears (higher than 1, but lower than 2) exchanged for every apple would result in mutually beneficial trade.
Linda's AGI for the year is 30,000. Her residence sustained damage from hurricane Maria (a federally declared natural disaster) in the current year: Her adjusted basis in the house: $150,000 Fair market value immediately before Maria $200,000 Fair market value immediately after Maria $180,000 How much will be her deductible casualty loss for the year
Answer: $16900
Explanation:
Her deductible casualty loss for the year would be:
Fair market value = $200,000
Less: FMV after Maria = $180,000
Reduction in the FMV of house = $20,000
Less: 10% of AGI = 10% × $30,000 = 0.1 × $30,000 = $3,000
Remaining Value after deduction = $17,000
Less: $100 deduction = $17000 - $100 = $16900
Therefore, deductible casualty loss for the year is $16,900
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $47,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined: cash on hand and in the bank, $42,500; amounts due from customers from sales of books, $27,700; equipment, $46,000; amounts owed to publishers for books purchased, $8,200; one-year notes payable to a local bank for $4,050. No dividends were declared or paid to the stockholders during the year. Assuming that Reader Direct generates net income of $7,000 and pays dividends of $2,800 in 2018, what would be the ending Retained Earnings balance at December 31, 2018?
Answer:
Reader Direct Corporation
The ending Retained Earnings balance at December 31, 2018 is:
$14,150
Explanation:
a) Data and Calculations:
Cash on hand and in the bank, $42,500;
Amounts due from customers from sales of books, $27,700;
Equipment, $46,000;
Amounts owed to publishers for books purchased, $8,200;
One-year notes payable to a local bank for $4,050
Common Stock ($47,000 * 2) = $94,000
Assets:
Cash $42,500
Accounts Receivable 27,700
Equipment 46,000
Total assets $116,200
Liabilities + Equity:
Accounts Payable $8,200
Notes Payable 4,050
Total liabilities $12,250
Equity:
Common Stock $94,000
Retained Earnings 9,950
Total equity $103,950
Liabilities + equity $116,200
Retained Earnings:
Dec. 31, 2017 $9,950
Net income 7,000
less Dividends (2,800)
Dec. 31, 2017 $14,150
What is a companys obligation to contribute to the sustainability of natural resources
Answer:
Companies have a corporate social responsibility towards their environment.
Explanation:
Corporate social responsibility implies that companies are expected to engage in industrial practices that would not result in harm to their environment. For example, the amount of carbon being released into the environment must be controlled as excessive release of carbon can be detrimental to health. It is also not right for waste to be discharged into the oceans because the health of the sea animals, the ocean itself and those who swim in it are at risk.
To promote sustainability, companies avoid practices that would eventually harm their environment. Abiding by these practices might take a longer route, but is eventually cost effective and beneficial.
What are the five worst selling products based on quantity sold? Group of answer choices Mishi Kobe Niku, Genen Shouyu, Gravad lax, Chocolade, Laughing Lumberjack Lager Camembert Pierrot, Raclette Courdavault, Gorgonzola Telino, Gnocchi di nonna Alice, Pavlova, Alice Mutton, Aniseed Syrup, Boston Crab Meat, Camembert Pierrot, Carnarvon Tigers Zaanse koeken, Wimmers gute Semmelknödel, Vegie-spread, Valkoinen suklaa, Uncle Bob's Organic Dried Pears
Answer:
Tigers Zaanse
Explanatio
lol Tigers Zaanse
Select the statements below that are correct. Choose one or more: A. Conditional factor demands give the profit-maximizing choices of inputs, given the price of output. B. An isocost curve represents all possible combinations of the inputs of production that yield the same cost. C. If the cost of producing y units of output is C dollars, the isoquant for the level of output y must be identical to the isocost for C dollars. D. The cost function measures the minimal cost of producing any level of output, given the costs of the factors of production. E. An isoquant represents all possible combinations of the inputs of production that yield the same level of output.
Answer: B. An isocost curve represents all possible combinations of the inputs of production that yield the same cost.
D. The cost function measures the minimal cost of producing any level of output, given the costs of the factors of production.
E. An isoquant represents all possible combinations of the inputs of production that yield the same level of output.
Explanation:
Option A is incorrect
The conditional factor demand doesn't give the profit maximizing level given the output choices.
Option B is correct
An isocost curve represents all possible combinations of the inputs of production that yield the same cost.
Option C is incorrect
If the cost of producing y units of output is C dollars, it doesn't imply that the isoquant for the level of output y must be identical to the isocost for C dollars.
Option D is correct
The cost function measures the minimal cost of producing any level of output, given the costs of the factors of production.
Option E is correct
An isoquant represents all possible combinations of the inputs of production that yield the same level of output.
Therefore, the correct options are B, D, and E.
You are considering opening a donut restaurant aimed primarily at the breakfast market. You plan to sell donuts, coffee, and other items in fixed proportion to one another. For each donut sold, you expect the company to sell two cups of coffee and $2 of other items. You expect to earn $0.50 on each donut, $0.50 on each cup of coffee, and $1.00 on the other items. Salaries, equipment, and rent cost about $100,000 per year. What is the break-even quantity of donuts?
Answer:
Donuts= 28,571
Explanation:
First, we need to determine the sale proportion of each product:
Other items= 2/5= 0.4
Coffe= 2/5= 0.4
Donut= 1/5= 0.2
Now, we can calculate the break-even point in units for the company as a whole:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 100,000 / (0.5*0.2 + 0.5*0.4 + 1*0.4)
Break-even point (units)= 100,000 / 0.7
Break-even point (units)= 142,857 units
Now, the number of donuts:
Donuts= 0.2*142,857
Donuts= 28,571
10. In which scenario do most homeowners use equity in their home? A). To pay off student loan B). When they have children C). When they sell it to buy a new One D). When they’re threatened with foreclosure.
Answer:
D. When they're threatened with foreclosure
Explanation:
Most homeowners make use of their equity when they sell their house and purchase a new one. So, option (C) is the best choice.
The difference between a property's current market value and any outstanding liens or mortgages is referred to as equity in a home. Through their recurring mortgage payments and any value growth of the home, homeowners gradually increase the equity in their properties.
Homeowners can utilize the equity they have accumulated to buy a new house if they decide to sell their current one. They can utilize the equity to pay for the down payment on a new house or to lower the size of the mortgage they need to take out. The most typical situation in which homeowners spend their equity in their homes is this one.Therefore, Most homeowners make use of their equity when they sell their house and purchase a new one. So, option (C) is the best choice.
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Which function on the Capital IQ platform allows users to receive notifications when there are any news or key developments entered for selected companies?
Answer: Create New Alert
Explanation:
To receive notification on the Capital IQ platform, an alert would have to be created by "create new alert". To do that navigate to My Capital IQ - My Alerts. Click on “Create New Alert” link and enter a name for the alert you want to create. Select the box next to Key Developments and add companies to your alert.
For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement effects template and (b) in journal entry form. 1. Unrecorded depreciation on equipment is $610. 2. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred, but no utility bill has yet been received or paid. 3. On the first day of the current period, rent for four periods was paid and recorded as a $2,800 debit to Prepaid Rent and a $2,800 credit to Cash. 4. Nine months ago, The Hartford Financial Services Group sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $624 and crediting Contract Liabilities for $624. No adjusting entries have been prepared during the nine-month period. Hartford's annual financial statements are now being prepared. 5. At the end of the period, employee wages of $965 have been incurred but not yet paid or recorded. 6. At the end of the period, $300 of interest income has been earned but not yet received or recorded. (a) using the financial statement effects template (b) in journal entry form
Answer:
Adjustments (a) using the financial statement effects template and (b) in journal entry form
1. Unrecorded depreciation on equipment is $610.
a) Assets (Equipment -$610) = Liabilities + Equity (Retained Earnings -$610)
b) Debit Depreciation Expense $610
Credit Accumulated Depreciation $610
2. On the date for preparing financial statements, an estimated utilities expense of $390 has been incurred, but no utility bill has yet been received or paid.
a) Assets = Liabilities (Utilities payable +$390) + Equity (Retained Earnings +$390)
b) Debit Utilities Expense $390
Credit Utilities payable $390
3. On the first day of the current period, rent for four periods was paid and recorded as a $2,800 debit to Prepaid Rent and a $2,800 credit to Cash.
a) Asset (Prepaid Rent -$700) = Liabilities + Equity (Retained Earnings -$700)
b) Debit Rent Expense $700
Credit Prepaid Rent $700
4. Nine months ago, The Hartford Financial Services Group sold a one-year policy to a customer and recorded the receipt of the premium by debiting Cash for $624 and crediting Contract Liabilities for $624. No adjusting entries have been prepared during the nine-month period. Hartford's annual financial statements are now being prepared.
a) Assets = Liabilities (Contract Liabilities -$468) + Equity (Retained Earnings +$468)
b) Debit Contract liabilities $468
Credit Premium Revenue Earned $468
5. At the end of the period, employee wages of $965 have been incurred but not yet paid or recorded.
a) Assets = Liabilities (Wages Payable +$965) + Equity (Retained Earnings -$965)
b) Debit Wages Expense $965
Credit Wages Payable $965
6. At the end of the period, $300 of interest income has been earned but not yet received or recorded.
a) Assets (Interest Receivable +$300) = Liabilities + Equity (Retained Earnings + $300)
b) Debit Interest Receivable $300
Credit Interest Revenue $300
Explanation:
Each of the above adjustments has effects on the balance sheet and the income statement (through the retained earnings balance). The effects on the assets, liabilities, and equity represent the balance sheet effects. The effects on the retained earnings represent the income statement effects. Since the retained earnings are determined in the income statement and transferred to the balance sheet, we can actually use the accounting equation to depict all the effects as above.
Cost of goods manufactured during the year is $240,000, and work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred are
Answer:
$165,000
Explanation:
The first step is to calculate the work in process inventory
= 50,000/40/100
= 50,000/0.4
= 125,000
Therefore the total manufacturing cost can be calculated as follows
= 240,000-125,000+50,000
= 115,000+50,000
= 165,000
Hence the total manufacturing costs is $165,000
Seybert Systems accounts for its investment in Wang Engineering bonds as available-for-sale. Seybert's balance in accumulated other comprehensive income with respect to the Wang investment is a credit balance of $27,000, and Seybert reports the investment as $200,000 on its balance sheet. Seybert purchased the Wang investment for (ignore taxes):________.
Answer:
Seybert purchased the Wang investment for $173,000
Explanation:
Since there is a credit balance. It means the stock is increased in value by $27,000. So that the stock was purchased at $173,000 ($200,000-$27,000).
For the year ended December 31, 2020, Cullumber Company reported the following: Net income $305000 Preferred dividends declared 50500 Common dividend declared 9100 Unrealized holding loss, net of tax 4800 Retained earnings, beginning balance 420000 Common stock 199400 Accumulated Other Comprehensive Income, Beginning Balance 24400 What would Cullumber report as the ending balance of Retained Earnings
Answer:
$665,400
Explanation:
The ending retained earnings are computed by taking the beginning retained earnings alongside the net income for the year while adjusting for both common and preferred stocks dividends
The ending retained earnings=beginning retained earnings+Net income-Preferred dividends-Common dividends
Unrealized holding loss would only have an impact on Accumulated Other Comprehensive Income.
The ending retained earnings=420000+305000-50500-9100
The ending retained earnings=$665,400
balance in Accumulated Other Comprehensive Income=24400-4800=$19,600
Echo Company uses a normalized job costing system and applies factory overhead on the basis of machine hours. Echo's yearly profit plan disclosed anticipated factory overhead of $4,800,000 if 200,000 machine hours are worked. By year-end, actual factory overhead charges and machine hours worked amounted to $4,730,000 and 215,000, respectively. What amount correctly states the factory overhead applied to Echo's actual year-end overhead
Answer:
$22
Explanation:
Given the above information, the amount that correctly states the factory overhead applied is ;
= Actual factory overhead charges / Machine hours worked
= $4,730,000 / 215,000
= $22
Which of the following statements is true based on what we know about the properties of utility? Group of answer choices Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas. Alexandra receives 20 utility from drinking one soda, and Ally receives 20 utility from consuming one soda. They both receive the same level of satisfaction from consuming a soda. Natalie receives 20 utility from watching a movie while Andrew receives 30 utility from playing a video game. Therefore, Andrew enjoys video games more than Natalie enjoys movies. Ally receives 15 utility from consuming one pizza while Jason receives 25 utility from eating one pizza. Therefore, Jason enjoys pizzas more than Ally.
Answer:
Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas.
Explanation:
Utility is defined as the level of satisfaction that a consumer derives from consuming various products. It is subjective and is dependent on individual preferences.
So utility or level of satisfaction differs from one individual to the other.
For example 20 utility for Alexandra will be different for 20 utility from Jason as each person has a user defined measurement of utility.
The only option that conveys individual utility is - Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas.
Alexandra defines her own utility so her level of satisfaction can be compared when she consumes soda and pizza.
The other options compares utility between different individuals and this cannot be done objectively as each person defines his own utility.
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $40,200 for Division A. Division B had a contribution margin ratio of 35% and its sales were $263,000. Net operating income for the company was $33,000 and traceable fixed expenses were $51,100. Corbel Corporation's common fixed expenses were:_______.
Answer:
$48,150
Explanation:
Common Fixed Expenses = Total Controllable Contribution - Net Operating Income - Traceable Fixed Expenses
Where,
Total Controllable Contribution = $132,250
Net Operating Income = $33,000
Traceable Fixed Expenses = $51,100
Therefore,
Common Fixed Expenses = $132,250 - $33,000 - $51,100
= $48,150
The central bank buys $15,000 worth of bonds in the open market from Christopher, who
deposits the proceeds in his checking account at Carla Bank. The required reserve ratio is
5%.
(a) What is the amount by which Carla Bank's liabilities have changed?
(b) Calculate the change in required reserves for Carla Bank.
(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially
make because of Christopher's deposit?
(d) Based on the central bank's open-market purchase of bonds, calculate the maximum
amount by which the money supply can change throughout the banking system.
(e) How will the change in the money supply in part (d) affect aggregate demand in the short
run? Explain.
Answer:
(a) What is the amount by which Carla Bank's liabilities have changed?
Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).
(b) Calculate the change in required reserves for Carla Bank.
Carla Bank's reserves must increase by $15,000 x 5% = $750
(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?
Carla Bank can loan $15,000 x 95% = $14,250
(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.
Money multiplier = 1 / 5% = 20
The money supply has the potential to increase by $15,000 x 20 = $300,000
(e) How will the change in the money supply in part (d) affect aggregate demand in the short run? Explain.
Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.
The amount by which Carla Bank's have changed is increased by $15,000, and the dollar value of the maximum amount of new loan is $14,250.
What are bonds?A bond is a type of security under which the issuer of the bonds build upon the holder a debt, and is obliged or depending on the given terms.
(a).
The amount by which Carla Bank's liabilities have changed is increased by $15,000 because the bank deposits are liabilities, and that have to pay in the market for the bonds.
(b).
The change in required reserves for Carla Bank in that the amount would be increased by $750, mean 5% of the borrowed amount. i.e.,
[tex](\$15,000 \times \frac{5}{100})[/tex]
(c).
The dollar value of the maximum amount of new loans Carla Bank would be initially the 95% of the amount of care loan means $14,250. i.e.,
[tex](\$15,000 \times \frac{95}{100})[/tex]
(d).
Based on the purchase of the central bank open-market of bonds, the maximum amount by which the money supply can change passim the banking system is the money multiplier, it is computed as,
[tex]\text{Money multiplier} = \dfrac{1}{\text{Reserve ratio \%}}\\\\ \test{\text{Money multiplier}} = 20[/tex]
Then, the money supply has the potential to increased by:
[tex]=\text{Loan Value} \times \text{\Money Multiplier}\\\\=\$15,000 \times 20 = \$300,000[/tex]
(e).
The change in the money supply in part (d) affect aggregate demand in the short run, as the aggregate demand will raise. Since the total money supply raises. This should also support to fall the interest rates and foster investment.
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View Policies Current Attempt in Progress At December 31, 2019, Wildhorse Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,579 shares $10,757,900 Common stock, $5 par, 4,074,720 shares 20,373,600 During 2020, Wildhorse did not issue any additional common stock. The following also occurred during 2020. Income from continuing operations before taxes $21,919,000 Discontinued operations (loss before taxes) $3,300,700 Preferred dividends declared $1,075,790 Common dividends declared $2,181,700 Effective tax rate 35 %
Compute earnings per share data as it should appear in the 2020 income statement of Wildhorse Corporation. (Round answers to 2 decimal places, e.g. 1.48.)
Earnings Per Share
$
$
Answer:
Wildhorse Corporation
Income Statement (Partial)
For the year ended Dec 31, 2020
Particulars Amount
Net Income
Income from continuing operation $21,919,000
before income tax
Income Tax (35%) $7,671,650
Income from continuing operation $14,247,350
Discontinued operations
Losses before taxes $3,300,700
Less: Income tax (35%) $1,155,245 $2,145,455
Net Income $12,101,895
Preferred dividend declared $1,075,790
Weighted average common share outstanding 4,074,720 shares
Earning per share
Income from continuing operation $3.23
($14,247,350 - $1,075,790)/4074720
Less: Discontinued operation, net of tax -$0.53
($2,145,455/4074720)
Net Income $2.71
($12,101,895 - $1,075,790) / 4074720
Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $4,400 on each September 30, beginning on September 30, 2024. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 9% properly reflects the time value of money in this situation.
Answer: $16,613
Explanation:
As the noninterest-bearing note required Lincoln to make six annual payments of $4,400, this is an annuity because it is a constant figure.
The amount that should be recorded is the present value of this amount.
Present value of annuity = Annuity * ( 1 - ( 1 + rate) ^ -no. of periods) / rate
= 4,400 * ( 1 - ( 1 + 9%)⁻⁶) / 9%
= $19,738
This present value is for September 30, 2023. It needs to be discounted further to September 30, 2021.
= 19,738 / (1 + 9%)²
= $16,613
Suppose two projects have the same expected business value. Project A has a very high estimated business value along with a high probability of failure. Project B has a much lower estimated business value along with a low probability of failure. If you could do only one of the projects, which one would you choose and under what conditions
Answer:
Project B has a much lower estimated business value along with a low probability of failure.
Explanation:
In order to do only one type of project that has the same business values. I would choose a project that has a low probability of failure. Though it has a low value but in the long run will lead to economic profit and shareholders value. For selection, we need to find out the benefits gained by the project.If a person could choose only one project he must select Project B as it has a much lower estimated business value along with a low probability of failure.
What are the selection criteria for the project?Project B would be a better option to choose as it is giving less risk to business as compared to Project B in terms of failure. However, the value of Project B is less but it has the potential to generate economic profits in the long run.
Therefore, by evaluating the cost and benefit from two projects shareholder's interest would be intact more through Project B.
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I need help on the first question , it's asking more or less
Answer:
more
Explanation:
As the economy increases, the need for property rights also increases, it's pretty widely accepted that property rights provide incentives to participate in the market.
Nigel belongs to a wealthy family. He has always enjoyed trying out new gadgets and devices that are launched in the market. Since he is financially well-off, he likes to experiment with expensive products and is comfortable with the risks and uncertainties associated with these products. Based on this description, Nigel most likely belongs to the group of:
Incomplete question. The Options;
a. Candidates for elected office
b. Early majority
c. Technology diffusers
d. Innovators
Answer:
b. Early majority
Explanation:
Recall we are told that Nigel loves trying new tech and is "financially well-off", so he falls under the category of those who are termed early majority who quickly try/adopt new technologies.
Also, the early majority are usually "comfortable with the risks and uncertainties associated with" new tech products, thus they are less worried about not deriving value for their money.
Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:
1. Opened a bank account in the name of SnapShot! and deposited $8,290 of his own money into this account in exchange for common stock.
2. Purchased photography supplies at a total cost of $980. The business paid $390 in cash, and the balance is on account.
3. Obtained estimates on the cost of photography equipment from three different manufacturers.
In what form (type of record) should Joel record these three activities?
Prepare the entries to record the transactions.
Answer:
1. Dr Cash $8,290
Cr Common stock $8,290
2. Dr Supplies $980
Cr Cash $390
Cr Accounts payable $590
3. No Entry $0
No Entry $0
Explanation:
Preparation of the entries to record the transactions
1. Based on the information given if he deposited the amount of $8,290 of his own money into this account in exchange for common stock the journal entry will be:
Dr Cash $8,290
Cr Common stock $8,290
(Being To record the investment)
2. Based on the information given in a situation where he Purchased photography supplies at a total cost of the amount of $980 which means that if The business paid the amount of $390 in cash, and the balance is on account the journal entry will be:
Dr Supplies $980
Cr Cash $390
Cr Accounts payable $590
($980-$390)
(Being To record the purchase of supplies)
3. Based on the information given in a situation where he Obtained the estimates on the cost of photography equipment from the three different manufacturers which means that no transaction or entry will be recorded.
No Entry $0
No Entry $0