Answer:
$1.05 per share
Explanation:
Earnings per share is computed as
= (Net income reported - Preferred stock dividend) ÷ (Outstanding number of shares + additional shares issued)
= ($611,000 - $81,000) ÷ (302,000 + 201,000)
= $530,000 ÷ 503,000
= $1.05 per share.
Therefore, Concord's 2021 earnings per common share is $1.05 per share.
Sheffield Corp. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2850000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2900000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12
Answer:
the overhead applied is $142,500
Explanation:
The computation of the overhead applied is shown below:
= Estimated annual overhead cost ÷ budgeted machine hours × used hours
= $2,850,000 ÷ 20,000 machine hours × 1,000 hours
= $142,500
Hence, the overhead applied is $142,500
We simply applied the above formula
If a company has goodwill on its books, the goodwill:
Goodwill is an intangible asset (an asset that's non-physical but offers long-term value) that arises when another company acquires a new business. Goodwill refers to the purchase cost, minus the fair market value of the tangible assets, the liabilities, and the intangible assets that you're able to identify.
How does goodwill affect a company?Goodwill has a major impact on value because it reduces the risk that a business' profitability will falter after it changes hands. That goodwill value is simply calculated as the difference between the purchase price of the business and the fair market value of the tangible assets included in the sale.
Learn more about goodwill here: brainly.com/question/25818989
#SPJ2
The goal of the review in a business presentation is to Multiple choice question. compel audience members to consider taking specific actions. lead audience members in participating in a dramatic demonstration. tie together the meaning of any visual aids used in the presentation. provide a brief evaluation of the speaker's reaction to audience members.
Answer:
provide a brief evaluation of the speaker's reaction to audience members.
Explanation:
In a business presentation review, the main objective is to provide a brief assessment of the speaker's reaction to audience members, that is, the objective is to share with the members of that company how business was conducted, what efforts were achieved and how company is moving into the market. Sharing a brief assessment of the speaker's reaction with members helps to create a sense of belonging to the company, identification of members and satisfaction with the results achieved, thus increasing reliability and appreciation at work, strengthening integration, productivity and organizational culture.
Convertible securities are bonds or preferred stock that, under specified terms and conditions, can be exchanged for common stock at the option of the holder. Conversion of these securities does not provide new capital; debt (or preferred stock) is simply replaced on the balance sheet by common stock. However, reducing the debt or preferred stock will improve the firm’s financial position and make it easier to raise additional capital, but raising additional capital requires a separate action.
The conversion ratio ( ) is the number of shares of common stock that are obtained by converting a convertible bond or share of convertible preferred stock. The conversion price ( ) is the effective price paid for common stock obtained by converting a convertible security. From the standpoint of the issuer, which of the following statements is a disadvantage of convertibles?
a. Because convertibles have low coupon rates, they require the firm to sell common stock at discount prices relative to prices that are currently prevailing.
b. Convertibles typically have a low coupon interest rate, and the advantage of this low-cost debt will be lost when conversion occurs.
c. If the company truly wants to raise equity capital and if the stock price does not rise sufficiently after the bond is issued, then the company will be stuck with debt rather than the desired equity. ___________ is/are correct.
Answer:
Statement B and Statement C are Correct. And Statement A is not Correct.
Explanation:
Solution:
In this question, statement B and Statement C are correct and Statement A is incorrect. Because:
From the standpoint of the issuer, both Statements B and C are a disadvantages of convertibles. So, statement B and B are correct.
The reason why Statement A is not correct is because convertibles tend to provide an opportunity to the person who is issuer of the convertibles to in order to sell common stock at premium or higher prices with respect to or relative to the prices that are currently prevailing prices.
Hence, Statement A is not correct.
Mt Kinley is a strategy consulting firm that divides its consultants into three classes, associates, managers, and partners. The firm has been stable in size for the last 20 years, ignoring growth opportunities in the 90s, but also not suffering from a need to down-size in the recession. Specifically, there have been – and are expected to be – 200 associates, 60 managers, and 20 partners. The work environment at Mt Kinley is rather competitive. After 4 years of working as an associate, a consultant goes "either up or out", i.e. becomes a manager or is dismissed from the company. Similarly, after 6 years a manager either becomes a partner or is dismissed. The company recruits MBAs as associate consultants, no hires are made at the manager or partner level. A partner stays with the company for another 10 years (total of 20 years with the company). How many new MBA graduates does Mt Kinley have to hire every year? What is the probability that an incoming MBA graduate would make partner at Mt Kinley?
Answer:
1. 50 consultants per year
2. 4%
Explanation:
1. Calculation to determine How many new MBA graduates does Mt Kinley have to hire every year
Using this formula
Flow Rate of associates= Inventory / Flow Time
Let plug in the formula
Flow Rate of associates = 200 consultants / 4 years
Flow Rate of associates= 50 consultants per year
Therefore the numbers of MBA graduates that Mt Kinley have to hire every year is 50 consultants per year
2. Calculation to determine the probability that an incoming MBA graduate would make partner at Mt Kinley
First step is to calculate the Flow Rate of managers using this formula
Flow Rate of manager= Inventory / Flow Time
Let plug in the formula
Flow Rate of manager = 60 consultants / 6 years
Flow Rate of manager =10 consultants per year
Second step is to calculate the flow rate of partner using this formula
Flow rate of partner = Inventory/ Flow time
Let plug in the formula
Flow rate of partner = 20/10
Flow rate of partner = 2 partners per year
Third step is to calculate the probability of becoming a manager
Probability (Manager) = 10/50
Probability (Manager) = 20%
Fourth step is to calculate Probability of becoming a partner
Probability (Partner) = 2/10
Probability (Partner) = 20%
Now let calculate the probability that an incoming MBA graduate would make partner at Mt Kinley
Probability of MBA graduate becoming a partner = 20% x 20%
Probability of MBA graduate becoming a partner = 4%
Therefore the probability that an incoming MBA graduate would make partner at Mt Kinley is 4%
Anthony Thomas Candies (ATC) reported the following financial data for 2021 and 2020:
2021 2020
Sales $ 314,000 $ 290,000
Sales returns and allowances 8,000 4,700
Net sales $ 306,000 $ 285,300
Cost of goods sold:
Inventory, January 1 62,000 18,000
Net purchases 139,000 142,000
Goods available for sale 201,000 160,000
Inventory, December 31 61,000 62,000
Cost of goods sold 140,000 98,000
Gross profit $ 166,000 $ 187,300
The average days inventory for ATC (rounded) for 2021 is: (Round your intermediate calculations to two decimal places. Round your final answer to the nearest whole number.)
A. 171 days.
B. 222 days.
C. 231 days
D. Less than 100 days.
Answer:
D. Less than 100 days
Explanation:
Average days inventory = 365 / Inventory turnover rate
But
Inventory turnover rate = Cost of goods sold / Average inventory
Also,
Average inventory = (Beginning inventory + Ending inventory) / 2
= ($62,000 + $18,000) / 2
= $40,000
Inventory turnover rate = $201,000 / $40,000 = 5.025
Average days inventory = 365 / 5.025 = 72.64 days
To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond’s is generally $1,000 and represents the amount borrowed from the bond’s first purchaser. • A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants. • A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a . • A bond’s gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions. Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information:esvoe37f387cf9b3627f11119053e024693f8affde5624e3d681c11860b391bb47ca1eovse What is the coupon interest rate of this bond
Answer: See explanation
Explanation:
A bond’s (face value) is generally $1,000 and represents the amount borrowed from the bond’s first purchaser.
A bond issuer is said to be in (default) if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants.
A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a (sinking fund provision).
A bond’s (call provision) gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.
The face value is the dollar value of a security, or a stock's original cost. Default means when the bond issuer doesn't agree with the stated terms of the bond.
Assume you gave up a $60,000 per year job at an accounting firm to start your own tax preparation business. To simplify, assume your tax personal obligations are the same whether you run your own firm or work for another firm. If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit
Answer:
Accounting profit= $70,000
Explanation:
Giving the following information:
If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit
The accounting profit does not include the opportunity cost of leaving the accounting job. In this case, the accounting profit is:
Accounting profit= revenue - costs
Accounting profit= 75,000 - 5,000
Accounting profit= $70,000
he following information is for James Industries' first year of operations. Amounts are in millions of dollars.
Year Future Taxable Amounts Future Amounts Total
2020 2021 2022 2023 2024
Accounting income $90
Temporary difference:
Advance rent payment (24 ) $6.00 $6.00 $6.00 $6.00 $24.00
Taxable income $66
In 2021 the company's pretax accounting income was $76.0. The enacted tax rate for 2020 and 2021 is 25%, and it is 30% for years after 2021.
Required:
Prepare a journal entry to record the income tax expense for the year 2021.
Answer:
Date Account Title Debit Credit
December 2021 Income tax expense $19,000,000
Deferred tax liability $1,500,000
Income tax payable $20,500,000
Explanation:
Amounts are in millions of dollars so convert them.
Income tax expense for 2021 is:
= Accounting income * tax rate
= 76,000,000 * 25%
= $19,000,000
Deferred tax liability for 2021 is:
= Advance rent payment for 2021 * 25%
= 6,000,000 * 25%
= $1,500,000
PLEASE HELP!! This is economics/business work. Will give brainliest if correct!!
Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following is additional information necessary to complete the budget: Variable costs: Direct labor ($6.00 per unit) Direct materials ($8.00 per unit) Variable manufacturing costs ($2.50 per unit) Fixed costs: Supervisor's salaries $80,000 Rent 12,000 Depreciation on equipment 24,000
Answer:
Results are below.
Explanation:
Giving the following information:
Total unitary variable cost= $16.5
Total fixed costs= $116,000
Now, the flexible budget for each production level:
16,000 units:
Total variable cost= 16.5*16,000= 264,000
Total fixed cost= 116,000
Total costs= $380,000
18,000 units:
Total variable cost= 16.5*18,000= 297,000
Total fixed cost= 116,000
Total costs= $413,000
20,000 units:
Total variable cost= 16.5*20,000= 330,000
Total fixed cost= 116,000
Total costs= $446,000
Jaffa Company prepared its annual financial statements dated December 31 of the current year. The company applies the FIFO inventory costing method; however, the company neglected to apply lower of cost or net realizable value to the ending inventory. The preliminary current year income statement follows:
Sales revenue $294,000
Cost of goods sold
Beginning inventory $34,400
Purchases 198,000
Goods available for sale 232,400
Ending inventory (FIFO cost) 63,364
Cost of goods sold 169,036
Gross profit 124,964
Operating expenses 63,400
Pretax income 61,564
Income tax expense (40%) 24,626
Net income $36,938
Required:
Prepare the income statement to reflect lower of cost or net realizable value valuation of the current year ending inventory.
Complete Question:
The ending inventory includes 15,841 units purchased at $4 each. The current market price is $3.00
Answer:
Jaffa Company
Income Statement, reflecting the lower of cost or net realizable value:
Sales revenue $294,000
Cost of goods sold
Beginning inventory $34,400
Purchases 198,000
Goods available for sale 232,400
Ending inventory (FIFO cost) 47,523
Cost of goods sold 184,877
Gross profit 109,123
Operating expenses 63,400
Pretax income 45,723
Income tax expense (40%) 18,289
Net income $27,434
Explanation:
a) Data and Calculations:
Ending inventory at LCNRV = 15,841 * $3.00 = $47,523
Sales revenue $294,000
Cost of goods sold
Beginning inventory $34,400
Purchases 198,000
Goods available for sale 232,400
Ending inventory (FIFO cost) 63,364
Cost of goods sold 169,036
Gross profit 124,964
Operating expenses 63,400
Pretax income 61,564
Income tax expense (40%) 24,626
Net income $36,938
Approach Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 14,800 Actual fixed overhead incurred: $791,000 Standard fixed overhead rate: $13 per hour Budgeted fixed overhead: $780,000 Planned level of machine-hour activity: 60,000 If Approach estimates four hours to manufacture a completed unit, the company's fixed-overhead volume variance would be: Multiple Choice $10,400 negative. $10,400 positive. $11,000 negative. $11,000 positive. None of the answers is correct.
Answer:
$11,000 unfavorable
Explanation:
Calculation to determine the company's fixed-overhead volume variance would be:
Actual fixed overhead incurred ($791,000)
Less Budgeted fixed overhead ($780,000)
Fixed-overhead volume variance $11,000 unfavorable
Therefore the company's fixed-overhead volume variance would be: $11,000 unfavorable
Carter Corporation's partial income statement after its first year of operations is as follows: Income before income taxes $3,750,000 Income tax expense Current $1,035,000 Deferred 90,000 1,125,000 Net income $2,625,000 Carter uses the straight-line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The amount charged to depreciation expense on its books this year was $2,400,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 20% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year
Answer: $2,850,000
Explanation:
The amount was deducted for depreciation on the corporation's tax return for the current year will be calculated as:
Defered income tax = $90,000
Tax rate = 20%
We will calculate the difference between the book income and the taxable income which will be:
= $90000 ÷ 20%
= $90000 × 100/20
= $90000 × 5
= $450000
Therefore, the amount that was deducted for depreciation on the corporation's tax return for the current year will be:
= $2,400,000 + $450,000
= $2,850,000
Barrington Industries anticipated selling 29,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 31,500 units and $182,700, respectively. If the company used a static budget for performance evaluations, Barrington would report a cost variance of: Multiple Choice $6,300U. $6,300F. $8,700U. $8,700F. None of the answers is correct.
Answer:
Barrington would report $8,700U cost variance.
Explanation:
This can be calculated as follows:
Actual sales commissions = $182,700
Budgeted sales commissions = Anticipated sales units * commissions of per unit = 29,000 * $6 = $174,000
Sales commission cost variance = Actual sales commissions - Budgeted sales commissions = $182,700 - $174,000 = $8,700U
Since the Actual sales commissions is greater than Budgeted sales commissions, the cost variance is unfavourable and Barrington would report $8,700U cost variance.
Following is the stockholders’ equity section of the balance sheet for The Procter & Gamble Company along with selected earnings and dividend data. For simplicity, balances for noncontrolling interests have been left out of income and shareholders' equity information.
$ millions except per share amounts 2014 2013
Net earnings attributable to Procter $10,956 $11,797
& Gamble shareholders
Common dividends 5,883 5,534
Preferred dividends 256 233
Basic net earnings per common share $3.82 $4.12
Diluted net earnings per common share $3.66 $3.93
Shareholders' equity:
Convertible class A preferred stock, $1,195 $1,234
stated value $1 per share
Common stock, stated value $1 per share 4,008 4,008
Additional paid-in capital 63,181 62,405
Treasury stock, at cost (shares held: (69,604) (67,278)
2014--1260.8; 2013--1242.6)
Retained earnings 75,349 70,682
Accumulated other comprehensive (9,333) (2,054)
income/(loss)
Other (761) (996)
Shareholders' equity attributable to $64,035 $68,001
Procter & Gamble shareholders
a. Compute the number of common shares outstanding at the end of each fiscal year. Estimate the average number of shares outstanding during 2014. Round to one decimal place.
2014 million
2013 million
2014 Average million
b. Calculate the average cost per share of the shares held as treasury stock at the end of each fiscal year. Round to two decimal places.
2014
2013
c. In 2014, preferred shareholders elected to convert 40 million shares of preferred stock into common stock. Rather than issue new shares, the company granted 40 million shares held in treasury stock to the preferred shareholders. Prepare a journal entry to illustrate how this transaction would have been recorded. (Hint: use the cost per share for 2013 determined in b.) Enter answers in millions. Round to the nearest million.
Description Debit Credit
Preferred stockTreasury stockAdditional paid-in capital
Additional paid-in capital
Preferred stockTreasury stockAdditional paid-in capital
d. Calculate P&G's return on common equity (ROCE) for fiscal 2014. Round to one decimal place.
2014
Answer:
See below
Explanation:
a.
2014 $2,747.2 Million
2013 $2,765.4 Million
2014 Average $2,756.3 Million
Working
2014 4,008.0 - 1,260.8 = $2,747.2
2013 4,008.0 - 1,242.6 = $2,765.4
b.
2014 $54.14
2013 $55.21
c.
Account title
Preferred stock A/c Dr. $40.0
Additional paid in capital A/c Dr. $2,128.4
To Treasury stock A/c Cr. $2,168.4
d.
Net earnings attributable to P and G shareholders
$10,956
Shareholder's equity attributable to P and G shareholders $64,035
ROCE
($10,956 / $64,035) × 100
17.1%
To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the interest rate is 1% per month for 35 months. They also charge you $200 for a credit investigation, so you leave with $9,800 in your pocket. The monthly payment they calculated for you is $385.71/month.
If you agree to these terms and sign their contract, what is the actual APR (annual percentage rate) that you are paying?
Answer:
The actual APR (annual percentage rate) that you are paying is 12.69%.
Explanation:
The actual annual percentage rate (APR) can be calculated using the Annual Percentage Rate (APR) formula as
follows:
APR = (((Fees + Interest accrued) / Principal / n) * Number of months in a year) * 100 ……………… (1)
Where;
APR = ?
Fees = Credit investigation charged = $200
Principal = Amount borrowed = $10,000
Total accrued amount = Principal * (1 + (Monthly interest rate * Number of months of loan tenure)) = $10,000 * (1 + (1% * 35)) = $13,500
Interest accrued = Total accrued amount - Principal = $13,500 - $10,000 =$3,500
n = Number of months of loan term = 35
Number of months in a year = 12
Substituting the values into equation (1), we have:
APR = (((200 + 3500) / 10000 / 35) * 12) * 100
APR = 12.69%
Therefore, the actual APR (annual percentage rate) that you are paying is 12.69%.
Supposed that the daily wage for miners is $110 and that of the muckers is $90 per day. Find the long run cost function for US Iron & Steel Co. (x teams produce 10x tons of iron ore per day.)
Answer:
$200 to produce 10x ton of iron ore
Explanation:
The cost for one day to produce 10x tons of iron ore is calculated as follows.
1 miner and 1 mucker work together to make 10x ton of iron ore where,
1 miners wage = $110
1 mucker wage = $90
This makes a total of $200 to produce 10x ton of iron ore.
The costs in the long run will remain same because the wages are fixed if the wages are negotiable or varies then in the long run the cost function can differ.
An investor thought that market interest rates were going to decline. He paid $19,000 for a corporate bond with a face value of $20,000. The bond has an interest rate of 10% per year payable annually. If the investor plans to sell the bond immediately after receiving the 4th interest payment, how much will he have to receive in order to make a return of 14% per year? Solve using:
a. tabulated factors
b. the GOAL SEEK tool on a spreadsheet.
Answer:
Answer is explained in the explanation section below.
Explanation:
a. In this part, we need to calculate the present worth using the formula to calculate the sale price of the bond.
As the coupon rate = 10% per year
So,
The Annual dividend will = 2000 = 10% x 20,000
19000 = 2000 (P/A, 14%,4) + B(P/F,14%,4)
19000 = 2000 (2.9137) + B (0.592)
Solving for B = Desired sales price of the bond
B = [tex]\frac{19000 - 5827.4}{0.592}[/tex]
B = 22251
b. Part b of this question is to solve using GOAL SEEK feature of a spreadsheet so, I have attached it in the attachment. Please refer to the attachment for the solution of part b.
Cost pools should be charged to responsibility centers by using: Multiple Choice budgeted amounts of allocation bases because the behavior of one responsibility center should influence the allocations to other responsibility centers. actual amounts of allocation bases because the behavior of one responsibility center should influence the allocations to other responsibility centers. actual amounts of allocation bases because the behavior of one responsibility center should not influence the allocations to other responsibility centers. some other approach. budgeted amounts of allocation bases because the behavior of one responsibility center should not influence the allocations to other responsibility centers.
Answer:
budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others.
Explanation:
The budgeted amount of allocation bases would be measured at the starting of the period and the same would be applied or used to charge the cost pool for the responsibility centers
Hence, according to the given situation, the above represent the answer
And, the same should be relevant
A firm can lease a truck for 5 years at a cost of $49,000 annually. It can instead buy a truck at a cost of $99,000, with annual maintenance expenses of $29,000. The truck will be sold at the end of 5 years for $39,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%
Answer:
Leasing or Buying a Truck:
The equivalent annual cost of buying and maintaining the truck (if the discount rate is 12%) is:
= $50,328
Explanation:
a) Data and Calculations:
Interest rate = 6% per year
Lease Purchase
Initial Cost $99,000
Annual Cost $49,000 $29,000
Salvage Value $39,000
Useful Life (years) 5 5
Annuity factor = 3.605 for 5 years at 12%.
Present value factor = 0.567 for 5 years at 12%.
Lease Purchase
Present value of costs:
Initial cost $99,000 (1 * $99,000)
Annuity costs $176,645 104,545 (3.605 * $29,000)
PV of salvage value (22,113) (0.567 * $39,000)
NPV cost $176,645 $181,432
The equivalent annual cost:
= Total NPV cost/PV annuity factor
($176,645/3.605) ($181,432/3.605)
Equivalent annual cost $49,000 $50,328
Difference:
Purchase = $50,328
Lease = $49,000
Difference = $1,328
Crane Company took a physical inventory on December 31 and determined that goods costing $180,000 were on hand. Not included in the physical count were $20,000 of goods purchased from Nash's Trading Post, LLC, FOB, shipping point, and $20,000 of goods sold to Swifty Corporation for $30,000, FOB destination. Both the Nash purchase and the Swifty sale were in transit at year-end.
Required:
What amount should Crane report as its December 31 inventory?
Answer:
$220,000
Explanation:
Calculation for What amount should Crane report as its December 31 inventory
Using this formula
Ending inventory =Goods costing on hand+Physical count of goods purchased+Goods sold
Let plug in the formula
Ending inventory = $180,000 + $20,000 + $20,000
Ending inventory = $220,000
Therefore the amount that Crane should report as its December 31 inventory is $220,000
What is the solution to this problem?
Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom hold 2,400 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 480 of her shares for $30,700 per share on December 31 of this year. Wilmaâs income tax basis in each share is $7,900. Flintstone has current E&P of $10,930,000 and accumulated E&P of $50,210,000.
a. What is the amount and character (capital gain or dividend) recognized by Wilma as a result of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied?
b. What is Wilmaâs income tax basis in the remaining 1,920 shares she owns in the company?
c. Assuming the company did not make any dividend distributions this year, by what amount does Flintstone reduce its E&P as a result of the redemption?
Answer:
Explanation:
From the given information:
In Flinstone company;
The old ownership = 2400/(2400+200) = 50%
New onwership = 1920/(1920 + 2400) = 44.4%
The reduction in Wilma ownership in Flinstone company is from 50% to 44.4%
Dividend amount perceived by WIlma is:
$30700 × 480 shares = $14,736,000
The responsibility of Wilma in the wake of taking the redemption is in reality more than the 40% (80% x 50%), so she fails the considerably disproportionate test.
Hence, dividend recognition = $1,47,36,000
b)
Wilma's personal income tax expense premise in excess shares can be determined by summing back the unused tax premise of 480 offers reclaimed to the premise of her leftover offers 1920.
unused tax premise of 480 shares = 480 × $7900 = $37,92,000
premises of the remaining shares = 1920 × $7900 = $1,51,68,000
In the remaining shares, WIlma income tax = $37,92,000 + $1,51,68,000
= $1,89,60,000
c)
Flintstone will make the decrease in its E&P by a measure of profit perceived by Wilma =$1,47,36,000
consumer behaviour of poor class of pakistan
Answer:
The poor class consumer usually buys products of basic necessity in frequency, but in limited and small quantities. It is not common for excessive purchases to be made and for products that are not essential for survival. In addition, this consumer can buy lower quality products that have lower prices, or products on sale or with low price offers. The frequency of shopping is also low and they tend to buy in more popular places for the low-income population.
Explanation:
Consumer behavior is the term used to determine the quantity, the reason, the places and the type of product that the consumer buys. This behavior can be analyzed psychologically, socially, economically and anthropologically.
Regarding poor consumption, it is common for the amount of money to be very limited, causing this consumer to buy only the essential products, even so the quantities are low and the quality is also low because that is what fits in the budget.
On May 10, 2020, Nash 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 $2,150 on July 15, 2020. The cost of the goods is $1,470. Nash delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Nash related to this contract. Either party may terminate the contract without compensation until one of the parties performs
Answer and Explanation:
The journal entries are shown below:
On June 15
Account receivable Dr $2,150
To sales revenue $2,150
(Being product sold on credit is recorded)
Here account receivable is debited as it increased the assets and credited the sales revenue as it also increased the revenue
On June 15
Cost of goods sold Dr $1,470
To Inventory $1,470
(Being the cost of the inventory is recorded)
Here cost of goods sold is debited as it increased the expense and credited the inventory as it decreased the assets
On July 15
Cash Dr $2,150
To Account receivable $2,150
(Being cash receipt is recorded)
Here cash is debited as it increased the assets and credited the account receivable as it decrease the assets
Quark Inc. just began business and made the following four inventory purchases in June: June 1 150 units $ 825 June 10 200 units 1,120 June 15 200 units 1,140 June 28 150 units 885 $3,970 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is
Answer:
$1,170
Explanation:
The amount allocated to ending inventory for June using FIFO inventory method is computed as;
= $885 + [($1,140 ÷ 200) × (200 - 150]
= $88 5 + ($5.7 × 50)
= $885 + $285
= $1,170
Suppose that the Federal Reserve decides to decrease the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values.
Federal Reserves Assest Liabilities
Commercial Reserves Assets Liabilities
For the Federal Reserve, what are assets? What are liabilities?
a. Monetary base; Reserves
b. Monetary base; Treasury bills
c. Treasury bills; Reserves
d. Reserves; Treasury bill
e. Treasury bills; Monetary base
Answer:
1. Federal Reserves:
Assets : $300
The Fed purchased these T-bills so they will form part of the Fed's assets as they are now owned by the Fed.
Liabilities: $300
Liabilities of the Fed will increase by $300 because the banks will deposit the money they got from the purchase in the Fed.
Commercial Banks:
Treasury Bills: -$300
The Treasury bills will reduce by $300 to reflect that the Fed purchased $300 worth of T-bills from the banks.
Reserves: $300
Reserves will increase because the banks would have made money from selling the T-bills to the Fed.
2. e. Treasury bills; Monetary base
Treasury bills are assets to the Fed in this case because as explained, they own these T-bills now after purchasing them.
The monetary base however, is a liability because it represents commercial bank reserves held in the Fed. They owe the banks this money thereby making it a liability.
This year, Amy purchased $1,900 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because Amy did not place the equipment into service during the year, she does not claim any depreciation or cost recovery expense for the equipment. Problem 9-57 Part-a (Algo) a. After the accident, Amy had the choice of repairing the equipment for $2,260 or selling the equipment to a junk shop for $620. Amy sold the equipment. What amount can Amy deduct for the loss of the equipment
Answer:
For the complete destruction of a business asset, Amy can claim a casualty loss deduction for the tax basis of the machine less any recovery. Hence, Amy can claim a casualty deduction for $1,700 ($2,000-$300)b.
For partial destruction of a business asset, Amy can claim a casualty loss deduction for the lesser of the economic loss (the cost of repair) or the tax basis of the machine. In this case, Amy can deduct $800
Item 5 Required information Skip to question Current Time 0:00 / Duration 6:35 1x The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to estimate the cost of operating each department. He has identified several indirect costs that must be allocated to each department including $43,000 of indirect salaries, $4,500 of office supplies, and $36,500 of office rent. There are 500 students in the biology department, 200 in chemistry and 300 in physics (1,000 total students as the allocation base). The amount of cost that should be allocated to the Chemistry Department is
Answer:
$16,800
Explanation:
Calculation to determine The amount of cost that should be allocated to the Chemistry Department is
First step is to calculate the Cost to be allocated
Cost to be allocated = $43,000 + $4,500 + $36,500
Cost to be allocated= $84,000
Second step is to calculate the Allocation base
Allocation base = 500 + 200 + 300
Allocation base = 1,000 total students
Third step is to calculate the Allocation rate using this formula
Allocation rate = Cost to be allocated ÷
Allocation base
Let plug in the formula
Allocation rate= $84,000 ÷ 1,000
Allocation rate = $84 per student
Now let calculate the Allocation to Chemistry Department
Allocation to Chemistry Department = $84 per student x 200
Allocation to Chemistry Department = $16,800
Therefore The amount of cost that should be allocated to the Chemistry Department is $16,800
Financial Statement Analysis Portfolio
The Income Statement for Pumpkin Co. is shown below:
Pumpkin Co.IncomeStatement
for the Month Ended October 21, 2010
revenues- blank
sales
$120,000.00
operating expenses-blank
salary expense
$10,000.00
supplies expense
$14,000.00
depreciation expense
$4,000.00
net income
$92,000.00
Pumpkin Co. is about to embark on a project that will have a total cost of $300,000.00 over a 10-year period.
1. Calculate the expected annual rate of return on this project.
2.Calculate the cash payback on this project.