Answer:
b. Credit Treasury Stock $10,800.
Explanation:
The Journal entry is shown below:-
Cash Dr, $6,000 (400 × $15)
Retained Earnings Dr, $4,800
To Treasury Stock $10,800 (400 × 27)
(Being reissued shares is recorded)
Here we debited the cash and retained earnings as it increased the cash and reduced the retained earning balance and we credited the treasury stock as it reduced the balance of treasury stock
Milton Industries expects free cash flow of $5 million each year. Milton's corporate tax rate is 35%, and its unlevered cost of capital is 15%. The firm also has outstanding debt of $19.05 million, and it expects to maintain this level of debt permanently. What is the value of Milton Industries without leverage? What is the value of Milton Industries with leverage?
Answer:
1. $33.33 million
2. $40.00 million
Explanation:
The computation of the value of Milton Industries with leverage is shown below:-
Value of Milton Industries without leverage is
= Free cash flow ÷ unlevered cost of capital
= $5 million ÷ 0.15
= $33.33 million
Value of Milton Industries with leverage is
= Value of Milton Industries without leverage + Tax × Debt
= $33.33 million + 0.35 × $19.05 million
= $40.00 million
Therefore we have applied the above formula.
Knowledge Check 01 On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chooses a color scheme for the first floor of her house. On July 31, the designer completed the design work for this customer. Prepare the July 31 journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
The Designer Journal Entry
Date General Journal Debit Credit
July 31 Unearned Revenue $7,500
Design Services Revenue $7,500
Magic Realm, Inc., has developed a new fantasy board game. The company sold 48,500 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $873,000 per year, and variable expenses are $41 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 60,625 games next year (an increase of 12,125 games, or 25%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Answer:
1a.
Contribution format income statement for the game last year
Sales ( 48,500 games × $61) $2,958,500
Less Variable Expenses ( 48,500 games × $41) ($1,988,500)
Contribution $970,000
Less Fixed Costs ($873,000)
Net Income / (loss) $97,000
1b. 10.00
2a. 250%
2b. $339,500
Explanation:
Contribution Income Statement : Shows Separately the Variable Costs and Fixed Cost
Degree of operating leverage = Contribution / EBIT
= $970,000 / $97,000
= 10.00
Increase in net operating income = Degree of operating leverage × Percentage Increase in Sales
= 10.00 × 25%
= 250%
Expected amount of net operating income = Last Year`s net operating income × 3.5
= $97,000 × 3.5
= $339,500
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:
Common Stock, $10 par $440,000
Paid-In Capital from Sale of Treasury Stock-Common 33,200
Paid-In Capital in Excess of Par-Common Stock 132,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Preferred 4% Stock, $50 par 1,020,000
Retained Earnings 2,057,400
Treasury Stock-Common 38,500
Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. There are 3,500 shares of common stock held as treasury stock.
Required:
Prepare the Stockholders' Equity section of the balance sheet as of July 31, the end of the current year.
Answer:
Specialty Auto Racing Inc.Stockholders' Equity section of the balance sheet as at July 31:
Authorized Share Capital:
Common Stock, 200,000 $10 par
Preferred 4% Stock, 50,000 $50 par
Common Stock, Issued share capital, $10 par $440,000
Paid-In Capital in Excess of Par-Common
Stock (132,000 + 33,200) 165,200
Treasury Stock-Common, 3,500 shares (38,500)
Preferred 4% Stock, $50 par 1,020,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Retained Earnings 2,057,400
Total Equity $3,705,300
Explanation:
The Stockholders equity section of the balance reports the Preferred stock, common stock, additional paid‐in‐capital, retained earnings, and treasury stock. It also discloses information regarding the par value, authorized shares, issued shares, and outstanding shares for each type of stock.
The Paid-in Capital from sale of Treasury stock- common of $33,200 is added to the Paid-in Capital in Excess of Par- Common Stock as there is no separate account for it.
Complete the following matrix to analyze the human factors that influence organizational change. Write 1 or 2 complete sentences to explain your rationale for each factor. An example has been provided. Human Factors That Influence Organizational Change Example: Resistance Influence on Organizational Change Example of Global Influence (if any) Example of National Influence (if any) Example: Causes delay in implementing change Example: Workers resist change to avoid outsourcing Example: Workers do not know position of the company in the marketplace Organizational Cause of Factor Example: Occurs because of how change is implemented by leadership 1. Loss of control 2. Uncertainty about future 3. Loss of face 4. Concern about competence 5. Fear of more work 6. Past resentments 7. Feeling threatened References
" Frequently, beer manufacturers run television ads showing attractive, young people having fun and, of course, drinking their beer. These ads are designed primarily to create: "
Answer: To create interest in the youths that it's actually for them mostly.
Explanation:
The way an advert is carried out or planned describes who they are communicating to. The content of the advert targets about 80% of it's market by the content it uses when carrying out the advert. When as advert uses young people frequently, it is primarily targeting the young people to build interest in it's product. So the content of an advert describes the market it wants to sell to.
If beer companies makes use of young people for their adverts then it is known that they simply want more patronize and interest from those young people.
The specifications for a plastic liner for a concrete highway project calls for thickness of 4.0 mmplus or minus0.08 mm. The standard deviation of the process is estimated to be 0.02 mm.
a) The standard deviation of the process is estimated to be 0.02 mm.
b) The upper specification limit for this product = ? mm (round your response to three decimal places).
c) The lower specification limit for this product = ? mm (round to three decimal places)
d) The process capability index (CPk) = ? (round to three decimal places)
e) The upper specification lies about ? standard deviations from the centerline (mean thickness)
Answer and Explanation:
The computation is shown below:
b. The upper specification limit is
= 4 + 0.08
= 4.080 mm
c. The Lower specification limit is
= 4 - 0.08
= 3.920 mm
d. The process capability index is
= min ((Upper specification limit - Mean) ÷ (3 × Standard deviation)), ((Mean - Lower specification limit)÷ (3 × Standard deviation))
= min (0.08 ÷ (3 × 0.02)), (0.08 ÷ (3 × 0.02))
= min (1.333, 1.333)
So it would be 1.333
e. Upper specification = 4.08 mm
Mean line = 4.0 mm
Now,
The upper specification lies at a distance = Upper specification - Mean line
= 4.08 mm - 4.0 mm
= 0.08 mm
upper specification =Upper specification lies ÷ One standard deviation
= 0.08 mm ÷ 0.02 mm
= 4 mm which is standard deviations from the mean
The following transactions are for Kingbird Company.1. On December 3, Kingbird Company sold $450,000 of merchandise to Blossom Co., on account, terms 1/10, n/30. The cost of the merchandise sold was $310,000.2. On December 8, Blossom Co. was granted an allowance of $22,000 for merchandise purchased on December 3.3. On December 13, Kingbird Company received the balance due from Blossom Co.Instruction:Prepare the journal entries to record these transactions on the books of Mack Company. Mack uses a perpetual inventory system.
Answer:
Kingbird Company or Mack Company
Journal Entries:
Dec. 3:
Debit Accounts Receivable (Blossom Co.) $450,000
Credit Sales Revenue $450,000
To record the sale of goods on account, terms 1/10, n/30.
Debit Cost of Goods Sold $310,000
Credit Inventory Account $310,000
To record the cost of goods sold.
Dec. 8:
Debit Sales Allowance $22,000
Credit Accounts Receivable (Blossom Co.) $22,000
To record the allowance granted.
Dec. 13:
Debit Cash Account $423,720
Debit Cash Discount $4,280
Credit Accounts Receivable (Blossom Co.) $428,000
To record the settlement of account.
Explanation:
Journal entries are used to record transactions that occur on a daily basis. They are usually the first set of records made in the accounting books. They show the accounts to be debited and the accounts to be credited. Each transaction is usually debited in one account and credited in another to reflect the double entry system of accounting and to keep the accounting equation in balance.
MV Corporation has debt with market value of $ 95 million, common equity with a book value of $ 102 million, and preferred stock worth $ 20 million outstanding. Its common equity trades at $ 48 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? g
Answer:
Total market value $383.8 million
Debt is 24.75%
Preferred stock is 5.21%
Common equity is 70.03%
Explanation:
Calculation of the weights that MV Corporation should use in its WACC
Debt value : $95 million
Preferred stock value : $20 million
Market value of common equity:
$48 per share×5.6million shares= $268.8 million
Total market value of firm: $95 +20 +268.8 =$383.8 million
Weights for WACC calculation:
Debt =95/383.8
=24.75%
Preferred Stock =20/383.8
=5.21%
Common Equity =268.8/383.8
=70.03%
Therefore the total market value of the firm will be $383.8 million Debt is 24.85% of the total value, preferred stock is 5.21%, and common equity is 70.03%
At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S corporation. Whitman generates a $120,000 loss for the year. On the 189th day of the year, Ann sells her half of the Whitman stock to her son, Scott. Becky's stock basis is $41,300. How much of the Whitman loss belongs to Ann and Becky
Answer:
Becky's loss = $60,000
Ann's loss = $31,068
Explanation:
Assuming a 365 day year, the loss allocation should be as follows:
Ann (then Scott) 50% x $120,000 = $60,000Becky 50% x $120,000 = $60,000From the 50% that corresponds to Ann:
Ann = 189/365 x $60,000 = $31,068.49 = $31,068Scott = $60,000 - $31,068 = $28,932Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a school of industrial relations, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Caroline: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate.
Antonio: I feel that government involvement in the economy should be reduced because government programs cause more harm than good.
Caroline: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate.
1. The disagreement between these economists is most likely due to
a. differences in values
b. differences in scientific judgement
c.differences in perception verse reality.
2. Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Lawyers make up an excessive percentage of elected officials.
b. Minimum wage laws do more to harm low-skilled workers than help them.
c. Tariffs and import quotas generally reduce economic welfare.
Answer:
1) Option A. differences in values
2) Option C. Tariffs and import quotas generally reduce economic welfare
Explanation:
1) Difference in values which can also be called value conflicts are due to variations in belief systems. I.e. when the belief systems of two groups do not allign. While Antonio believes that government programmes should be reduced because they cause more harm than good, Caroline is of the opinion that despite the inefficiency of government programmes, they are still necessary for the less fortunate. This disagreement is as a result of value conflict.
2) Both economists agree on the inefficiency of government programmes. The focal point of Caroline's argument is that government's intervention in the economy is needed for the less fortunate. Based on this premise, two economies chosen at random will most likely agree to the proposition that tariffs and import quotas generally reduce economic welfare.
X sells a house to Y for $300,000. Before selling the house, X forgets to tell Y about a leakyfaucet in a little-used sink in the basement (which would cost about $10 to fix). Y inspected the house, but just didn't notice the faucet. Later, Y wants to rescind the deal on the basis of fraud or misrepresentation because of the leaky faucet. Which of the following is the best reason why Y cannot rescind? a. Because Y didn't make an express misstatement regarding the faucet, but merely said nothing.b. Because Y's failure to notice the leaky faucet means that he did not justifiably rely on X's "misstatement."c. Because X's failure to disclose the condition of the faucet is not material.d. Because X didn't do anything to actively hide the leaky faucet.21
Answer:
c. Because X's failure to disclose the condition of the faucet is not material.
Explanation:
In order to consider X's failure as material and therefore allowing Y to rescind the contract, the failure to disclose must involve an element of the contract that is in such a bad condition that it would make the contract as "irreparably broken".
In this case, contract law provides other remedies that Y can use to try to make X pay for the repairs, but Y cannot unilaterally rescind the contract.
Drag each option to the correct location on the image. Match the pairs to their respective categories.
The correct answers are Pairs of Substitutes: tea- coffee, butter-margarine, petroleum-natural gas; Pairs of Complementary goods: printer-ink cartridge, pen-refill
Explanation:
In economics and related fields, substitutes are goods or products that are considered similar by customers and due to this, one product can replace the other. For example, butter and margarine are substitutes because they have similar properties and uses, which makes one product replace the other. This also occurs with tea and coffee, and petroleum and natural gas because one product can replace the other. Also, because of this, it is common customers buy only one of the products rather than both depending on preferences, price, availability, etc.
On the other hand, complementary goods are those that are used together, this often implies customers buy the two products and changes in one product affect the other. This occurs in the case of printer and ink cartridge because the products are used together and buying a printer often implies customers need to buy the cartridges. Similarly, pens and refills for pens are used and bought together, and one cannot replace the other.
When comparing the weighted-average and FIFO methods of process costing, which items are the same in both methods? (
Answer:
Objectives, Concepts and Journal Entry Accounts
Explanation:
The reason is that the objective of the FIFO and Weighted average methods is the same which is to assign the costs that were incurred to convert the raw inventory into finished goods.
The underlying concept in both of the method is cost flow assumption which is the transfer of the cost that was assigned to finished goods, to cost of goods sold.
The journal entry accounts are the same accounts used for weighted average method, LIFO and FIFO methods.
So these are the similarities which are found while comparing FIFO, LIFO and weighted average methods of process costing.
Mr. and Mrs. Camarena's AGI (earned income) was $15,410. Their federal income tax withholding was $930. They had no itemized deductions and two dependent children, ages 18 and 19. If Mr. and Mrs. Camarena are entitled to a $4,732 earned income credit, compute their income tax refund. Assume the taxable year is 2019.
Answer: $5,662
Explanation:
In 2019, married couples filling jointly had a standard deduction of $24,400.
Mr. and Mrs. Camarena's AGI of $15,410 is below this and so they will not be taxed as all income below $24,400 for them is not Taxable.
The income tax refund they gain will therefore be just the earned income credit as well as their federal income tax withholding.
= 4,732 + 930
= $5,662
Assume that demand increases from D1to D2; in the new long run equilibrium, price settles at a level between P1and P2This means that the industry in question is a(n) __________-cost industry.a. decreasingb. increasingc. constantd. marginale. low
Answer:
The answer is B. Increasing
Explanation:
An increasing-cost industry is an industry whose costs for production increase as more companies compete.
Why is this so? - This is because each new company in the industry increases its demand for supplies and factors needed for production.
A decreasing‐cost industry is one where costs of production reduces as the industry expands.
Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $700 million. The depreciation expense for 2020 is expected to be $150 million. The capital expenditures for 2020 are expected to be $375 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 7% per year. The required return on equity is 13%. The WACC is 11%. The firm has $199 million of non-operating assets. The market value of the company's debt is $3.534 billion. 120 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today
Answer:
The company's stock price today should be $71.17 per share.
Explanation:
The corporate valuation model approach can be used to estimate this by using the following steps:
Step 1: Calculation of the free cash flow
Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:
Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure
For this question, we therefore have:
Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million
Step 2: Calculation of Value of operations (Vo)
Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million
Step 3: Calculation of the Firm value
Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million
Step 4: Calculation of value of equity
Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million
Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.
Step 5: Calculation of stock price per share today
Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share
Therefore, the company's stock price today should be $71.17 per share.
Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its quick ratio is 1.1. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar.
Answer:
a
Explanation:
I have no clue but good luck on test
The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.:
Accumulated Depreciation $32,000
Fees Earned 78,000
Depreciation Expense 7,250
Rent Expense 34,000
Prepaid Insurance 6,000
Supplies 400
Supplies Expense 1,800
Requried:
Prepare an income statement.
Answer:
Its 4oo
Explanation:
Its option C
Answer:
Fees Earned: 78,000
Expenses:
Rent Expense: (7,250)
Depreciation Expense: (34,000)
Supplies Expense: (1,000)
Total Expenses: 43,050
Net Income: 34,950
High fixed costs and low variable costs are typical of which approach? product process mass customization repetitive product and mass customization
Answer:
Product and mass customization.
Explanation:
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses etc.
High fixed costs and low variable costs are typical of product and mass customization.
Hence, the high fixed costs are usually a determinant for pricing a product that aren't produced in mass because to break even, businesses would need to rake in more revenues to meet the the increasing (high) fixed costs.
However, when this products are manufactured in mass, this would help to cut or lower down the total cost of production.
Sarasota Corporation had the following activities in 2017
1. Payment of accounts payable $817,000
2. Issuance of common stock $230,000
3. Payment of dividends $377,000
4. Collection of note receivable $97,000
5. Issuance of bonds payable $545,000
6. Purchase of treasury stock $42,000
Compute the amount Sarasota should report as net cash provided (used) by financing activities in its 2017 statement of cash flows. (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis e.g. (15,000).,)
Net cash __________ by financing activitiess _________.
Answer:
Net Cash provided in financing activities is $356,000
Explanation:
The cash flow from financing activities are the funds that the business took in or paid to finance its activities. These involve long term liability, issuance of stock, short term borrowing etc.
The financing activities in Sarasota Corporation report include; Issuance of common stock, Issuance of bonds payable, Payment of dividends, Purchase of treasury stock.
Cash provided by financing activities for the year 2017
Issuance of common stock = $230,000
Issuance of bonds payable. = $545,000
Payment of dividends = - $377,000
Purchase of treasury stock = -$42,000
Net Cash provided in financing activities = $356000
Milar Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.7 pounds $ 4 per pound
Direct labor 0.1 hours $ 20 per hour
Variable overhead 0.1 hours $ 4 per hour
In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
a. $1,690 U
b. $1,540 F
c. $1,540 U
d. $1,690 F
Answer:
Direct material price variance= $1,690 favorable
Explanation:
Giving the following information:
Direct materials 7.7 pounds $ 4 per pound
During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
actual price= 65,910/16,900= $3.9
Direct material price variance= (4 - 3.9)*16,900
Direct material price variance= $1,690 favorable
Gross Profit MethodBased on the following data, estimate the cost of the ending merchandise inventory: Sales (net) $9,250,000 Estimated gross profit rate 36% Beginning merchandise inventory $180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000
Answer:
$205,000
Explanation:
The computation of the cost of the ending merchandise inventory is shown below:-
Cost of the ending merchandise inventory = Merchandise available for sale - (Net Sales - Gross profit)
= $6,125,000 - ($9,250,000 - $9,250,000 × 36%)
= $6,125,000 - ($9,250,000 - $3,330,000)
= $205,000
Therefore we applied the above formula so that the cost of ending merchandise inventory could come
A firm with total liabilities and owners’ equity of $100,000 and net sales of $50,000 would have a total asset turnover of
Answer:
= 50000 / 100000 * 100
= 0.50
Explanation:
A 22-year, semiannual coupon bond sells for $1,066.57. The bond has a par value of $1,000 and a yield to maturity of 6.78 percent. What is the bond's coupon rate
Answer:
The answer is 7.37%
Explanation:
Solution
Given that
Bond per value = future value =$1000
The current price = $1,066.57
Time = 22 years * 2
=44 semi-annual periods
The year of maturity = 6.78%/2 = 3.39%
Thus
The coupon rate is computed by first calculating the amount of coupon payment.
So
By using a financial calculator, the coupon payment is calculated below:
FV= 1,000
PV= -1,066.57
n= 44
I/Y= 3.39
Now we press the PMT and CPT keys (function) to compute the payment (coupon)
What was obtained is 36.83 (value)
Thus
The annual coupon rate is: given as:
= $36.83*2/ $1,000
= $73.66/ $1,000
= 0.0737*1,00
=7.366% or 7.37%
Therefore 7.37% is the bond's coupon rate.
Trade adjustment assistance:_________.a. provides financial assistance to all unemployed workers in the United Statesb. guarantees jobs for all workers displaced by imports or plant relocations abroadc. provides assisntace to about 20 percent of unemployed U.S. workers each yeard. provides cash assistance for workers displaced by imports or plant relocations abroad
Answer:
The correct answer is the option B: guarantees jobs for all workers displaced by imports or plant relocations.
Explanation:
To begin with, the name of "Trade Adjustment Assistance" or TAA refers to a federal program from the United States that establish that its government must act in the situations necessary in order to reduce the damage cause by imports that are felt by certain sectors of the U. S. economy. Moreover, this program's structure features four components and one of them is the program for workers in which is established that the TAA provides a variety of reemployment services to those workers who were displaced or lost their jobs due to the increase of the imports or the relocation of their work plants.
You are the supervisor for a team of employees who have a high number of product defects. They also waste materials. You recognize that products defects and wasted materials affect your department's budget. You have told your team to decrease the amount of wasted materials, bur your employees do not seem to are. How can you get them to increase their quality and decrease waste
Answer:
I will write a memo to the management office requesting for a complete change of team members in my department.
Explanation:
In this case in which the staffs do not care about the high number of defective products, and material wastage, I will try to persuade the team to decrease the amount of waste as stated. If talking to the team members does not fix the problem, then I will write to the management office requesting for a complete change of team members. The reason is that first, my effectiveness and job as the supervisor of such a wasteful team will be questioned and will be at risk, and I stand to lose a lot if I do not do anything about it. Requesting for a change of some of the team member won't fix the problem, the members that are retained in the team will still pass this wasteful culture to the new team members, which would not justify the change. Bringing in a fresh batch of workers will allow me set the new standard, and enforce the new standard, which will be to minimizing defective products and waste.
Assume that both firm A and firm B formally agree to each put up $10 million to form firm C. The operations of firm C are restricted to conducting research and development activities for the benefit of firms A and B. Firm C is a _____ of firms A and B.
Answer: a. joint venture.
Explanation:
A Joint Venture refers to when 2 or more entities come together and put up resources necessary to accomplish a certain task or venture that will be beneficial to all of them.
For example, BMW and Toyota jointly started research into utilizing hydrogen fuels and Google cooperated with NASA to create Google Earth.
Firm C is a Joint venture between Firms A and B.
From the income statement, the corporation had a net income of $724 million for the year. Total dividends were $106 million. There were 400 million shares outstanding. How much is the dividends per share
Answer:
Dividend per year= $0.265 per share
Explanation:
Calculation of the dividend per year
Using this formula
Dividends per share=Total dividends/Total shares outstanding
Let plug in the formula
Dividend per share=$106/400
Dividend per share= $0.265 per share
Therefore the amount of dividend per share will be $0.265
Denny Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to Unearned Service Revenues. This account had a balance of $900,000 at December 31, 2011 before year-end adjustment. Service contracts still outstanding at December 31, 2011 expire as follows:
Service contracts still outstanding at December 31, 2011 expire as follows:
During 2012 $190,000
During 2013 $285,000
During 2014 $125,000
What amount should be reported as Unearned Service Revenues in Denny's December 31, 2011 balance sheet?
a. $900,000
b. $600,000
c. $1,500,000
d. $300,000
Answer:
b. $600,000
Explanation:
Amount to be reported = Outstanding service contracts for 2012, 2013 and 2014
=$190,000 + $285,000 + $125,000
=$600,000
$600,000 should be reported as unearned service revenues in Denny's Co. December 31, 2015 balance sheet.