Answer:
Gross profit Margin = 47.2%
Operating profit margin = 19.9%
Net Profit Margin = 12.93%
Explanation:
Requirement A: Gross profit margin
Gross Profit = Sales - Cost of sales
Gross Profit = 5.1m
Gross profit Margin = Gross profit/Sales x 100
Gross profit Margin = 5.1/10.8 x 100
Gross profit Margin = 47.2%
Requirement B: Operating profit margin
Operating profit margin = Operating Profit/ Sales x 100
Operating Profit = Gross Profit - selling,general and administrative expense -research and development - depriciation
Operating Profit = 5.1m - 0.55m - 1.2m - 1.2m
Operating Profit = 2.15m
Operating profit margin = 2.15m/10.8m x 100
Operating profit margin = 19.9%
Requirement C: Net profit Margin
Net Profit margin = Net profit / Sales x100
Net Profit = Operating profit - tax
Net Profit = 2.15m - (2.15m x 35%)
Net Profit = 2.15m - 0.7525m
Net Profit = 1.3975m
Net Profit Margin = 1.3975m/10.8m x 100
Net Profit Margin = 12.93%
The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.
Common stock—$10 par value, 150,000 shares
authorized, 62, 000 shares issued and outstanding $620,000
Paid—in capital in excess of par value, common stock 423,000
Retained earnings 552,000
Total stockholders ' equity 1595,000
On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $31 per share on February 5 before the stock dividend.
Required:
Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)
Answer:
TVX Company
Stockholders Equity Section of the Balance Sheet, February 28
Common stock $632,400
Paid in capital in excess of par value, Common stock $449,040
Retained earnings $513,560
Total Stockholders Equity $1,595,000
Workings
Common Stock
= Common Stock + Dividends Declared
= 620,000 + ( 2% * 62,000 shares * $10 par value)
= 620,000 + 12,400
= $632,400
Paid in capital in excess of par value, Common stock
Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.
= Balance + Dividends Declared
= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)
= 423,000 + 26,040
= $449,040
Retained earnings
= Retained Earnings - Dividends distributed
= 552,000 - (2% * 62,000 * $31)
= 552,000 - $38,440
= $513,560
Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $600,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out? Select the correct answer. a. $7,560 b. $1,890 c. $0 d. $5,670 e. $3,780
Answer:
The residual dividend is -$200,000, therefore If the company follows a residual dividend policy the total dividends will be $0
Explanation:
In order to calculate the total dividends, if any, will it pay out, we would have to calculate first the residual dividend a follows:
residual dividend=forecasted net income-(percentage equity*capital budget)
According to the given data we have the following:
forecasted net income=$600,000
percentage equity=40%
capital budget=$2,000,000
Therefore, residual dividend=$600,000-(40%*$2,000,000)
residual dividend=-$200,000
The residual dividend is -$200,000, therefore If the company follows a residual dividend policy the total dividends will be $0
Deborah currently earns a____________ wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's_______________ wage, in terms of the amount of milk she can buy with her paycheck, is______________ gallons of milk per hour.
Answer:
Deborah currently earns a_____hourly_______ wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's______hourly_________ wage, in terms of the amount of milk she can buy with her paycheck, is______5________ gallons of milk per hour.
Explanation:
The wage is calculated on hourly basis per day, so Deborah currently earns a hourly wage. Unlike a salary, wage is paid per day, or per week.
If milk costs $2.40 per gallon, and
Deborah earns $12.00 per hour, then...
Deborah's hourly wage in terms of the amount of milk she can buy is
==> $12.00 ÷ $2.40 = 5 gallons of milk per hour.
ervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record the transaction?
Answer:
Debit Cash account $71,250
Debit Factoring charge $3,750
Credit Accounts receivable $75,000
Explanation:
Factoring accounts receivable involves the sale of the account receivable to another party such that the debt is now payable to that party. This is usually done to ease liquidity and at a charge.
When receivables are factored,
Debit Cash account
Debit Factoring charge
Credit Accounts receivable
Charge on factoring = 5/100 × $75,000
= $3,750
Amount to be received = $75,000 - $3,750
= $71,250
As the VP of Global Marketing, what business objective do you want Holden Evan to achieve in Tuatara? Any choice will bring its own challenges and rewards and can lead you to success.
Answer:
The business objective that I want Holden Evan to achieve in Tuatara is to sell their products throughout the Tuatara territory.
Explanation:
As the VP of Global Marketing, the business objective that i want Holden Evan to achieve in Tuatara is to sell their products throughout the Tuatara territory reason been that Holden Evan is a multinational corporation that deal in selling of beauty products as well as other consumer goods and since Tuatara is an emerging market for consumer products, this means that Holden Evan’s main aim and objective in Tuatara territory should be to manufacture and sell their products throughout the Tuatara territory.
What is the purpose of internal controls? Managers utilize internal controls as a basis of employee performance reviews. Internal controls are used by managers as a way to reduce outstanding customer balances. Companies use strong internal controls to guarantee that loss is eliminated. To help managers know if the business is receiving the assets and services it has paid for.
Answer:
Companies use strong internal controls to guarantee that loss is eliminated.
Explanation:
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The purpose of internal controls is that companies use strong internal controls to guarantee that loss is eliminated as there's an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
Answer: To help managers know if the business is receiving the assets and services it has paid for.
Explanation:
On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semi annually on June 30 and December 31 each year.
Required: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $600,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
Answer:
When the bonds are issued on January 1, 2021
Investment in Bonds $600,000 (debit)
Cash $600,000 (credit)
When the first interest accrues - June 30, 2021
Investment in Bonds $21,000 (debit)
Interest Income $21,000 (credit)
When the first interest accrues - December 31, 2021
Investment in Bonds $21,000 (debit)
Interest Income $21,000 (credit)
Explanation:
Construct the bond amortization schedule using the following parameters extracted from the question.
Pv = - $600,000
Pmt = ($600,000 × 7%) / 2 = $21,000
P/yr = 2
N = 10 × 2 = 20
Fv = $600,000
YTM = 7 %
PLEASE HELP ASAP!
Which example is an investment commodity? (Select the best answer.)
steel
shares in a company
microfinancing
a rare painting
Which option allows you to pool your money and invest in a portfolio with other investors? (Select the best answer.)
a 529 plan
an IRA account
a mutual fund
a 401(k) plan
Which piece of information is typically included in a stock listing? (Select the best answer.)
the predicted price of the stock over the next year
the company's SEC registration credentials
the number of shares of stock sold in a previous day
the number of shares of stock sold in the previous year
Which type of investment income happens when an investor sells ownership in an equity investment that's gained value? (Select the best answer.)
capital gains
dividends
interest
equity gains
Answer:
1. Steel
2. A Mutual Fund
3. The number of shares of stock sold in a previous day
4. Capital Gains
Explanation:
1. Investment commodities are investments in raw materials or primary goods that are still to be processed such as Agricultural produce and precious metals. Steel falls under this category.
2. A Mutual Fund works by pooling the resources and monies of various people and then investing it in various companies as a single portfolio. This way even though your funds might be little, you can still be able to diversify investments and make a good return.
3. When stock is listed for sale on a particular day, its trading figures for the previous day are listed as well.
4. Capital gain is a way to gain a return when the value of your investment has increased. When you sell that asset at the new price which is higher than the price you bought it, you make a capital gain on the transaction. For instance, R. Taylor bought stock for $100 in 2005 and it is now selling at $900 and Taylor sells it, Taylor now has a capital gain of $800.
Customer service representatives (CSRs) often conceal their frustration when serving an irritating customer. This behavior from the CSRs is an example of
Answer:
emotional labor
Explanation:
This form of behavior or concealment of their frustrations demonstrated by the CSRs is an example of emotional labor. When in a workplace, employees are expected to conceal their emotions and instead display compassion to an ill patient, patience and understanding with an angry customer, or even enthusiasm in a long and boring meeting, even if they are fake reactions. These are all forms of emotional labor.
6. ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following dividends will be $0.20, $0.30, $0.40, and $0.50 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 2.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.0 percent
Answer:
The amount willing to pay to buy one share is $6.92.
Explanation:
The announcement by company to pay annual dividend = $0.10
2nd year divident amount = $0.20
3rd year divident amount = $0.30
4th year divident amount = $0.40
5th-year divident amount = $0.50
The increase in dividend = 2 percent.
The desired rate of return = 8%
Value after year 5 = (D5 × Growth rate) / (Required rate-Growth rate)
=(0.5 × 1.02) / (0.08-0.02)
=8.5
Therefore, the current value = Future dividend and value × Present value of discounting factor(rate%,time period)
=0.1/1.08 + 0.2/1.08^2 + 0.3/1.08^3 + 0.4/1.08^4 + 0.5/1.08^5 + 8.5/1.08^5
=$6.92.
Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March. Units Costs Beginning work in process inventory 2,000 Beginning work in process inventory Started 20,000 Direct materials $ 2,500 Ending work in process inventory 5,000 Conversion 6,360 $ 8,860 Status of ending work in process inventory Direct materials added 168,000 Materials—Percent complete 100 % Direct labor added 199,850 Conversion—Percent complete 35 % Overhead applied (140% of direct labor) 279,790 Total costs to account for $ 656,500 Ending work in process inventory $ 84,110 Prepare a process cost summary report for this company showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Answer: kindly check attached picture
Explanation:
Production activities for MARCH:
Beginning work in process inventory = 2000
Units started in March = 20,000
Therefore, total units to account for :
(2,000 + 20,000) units = 22,000 units
Total units transferred out :
Total units to account for - Ending work in process:
(22,000 - 5,000) units = 17,000 units
Check attached picture for further explanation
In producing jelly beans, 1,000 hours of direct labor were used at a rate of $12 per hour. The standard was 1,100 at $12.25 per hour. What is the direct labor efficiency variance
Answer:
Efficiency variance = $1,225 favorable
Explanation:
Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate .
It occurs as result of workers working faster or slower than expected (i.e standard hour )
Hours
standard hours 1, 100
Actual hours 1,000
efficiency varainec in Labour hour 100 favorable
Standard labour rate × $12.25f
Efficiency variance $1,225 favorable
Efficiency variance = $1,225
Harvey is planning to file a case against a petrochemical giant that has a plant in his town. The petrochemical plant is dumping toxic wastes into its surrounding areas. Harvey is mobilizing the residents of the town, all of whom have suffered from various health problems due to the activities of the plant. Which of the following would be of most help to Harvey and the other residents?
A. Affirmative defense
B. Class action
C. Demurrer
D. Directed verdict
Answer:
B. Class action
Explanation:
In this scenario, Harvey is planning to file a case against a petrochemical giant that has a plant in his town because the petrochemical plant is dumping toxic wastes into its surrounding areas. Sequel to this, Harvey is mobilizing the residents of the town, all of whom have suffered from various health problems due to the activities of the plant.
Hence, a class action would be of most help to Harvey and the other residents.
In Law, a class action is a type of lawsuit in which a collective group of people (plaintiffs) having similar injuries or suffering similar damages caused by a particular company's product or action sue the defendant on behalf of a larger group. This simply means that, the group of people (plaintiffs) have a common interest as a result of sharing similar actions from an event.
Hence, the larger group that is being represented by Harvey is referred to as the "class" in business law.
Additionally, it is required by law that the class attest to the fact that they were affected by the actions of the petrochemical plant (defendant).
Assume that on January 1, 2015, a parent purchases a subsidiary with a book value of stockholders’ equity of $1,000,000 for $1,500,000. To finance the purchase, the parent issues 50,000 shares of its $1 par common stock having a market value of $30 per share and exchanges those shares with the sub’s stockholders for all of the sub’s voting shares that they own. At the date of acquisition, the sub’s book values approximated fair values except for two items. PP&E was undervalued by $200,000 and the sub had developed a patent internally that the parent estimates had a fair value of $175,000. The expected useful life of the patent is 10 years and the PP&E has a remaining useful life of 20 years. During the year ended December 31, 2015, the first year after the acquisition, the sub reported sales of $1,500,000; COGS was $900,000 and operating expenses were $390,000. The sub also paid a dividend of $31,500 to the parent. Using the Equity Method to account for the business combination both at, and subsequent to, the acquisition, determine the allocation of the excess fair value and make the appropriate journal entries to record the acquisition and 2015 activity.
Answer:
Journal entries are given below;
Explanation:
January 2015
Investment in Subsidiary (Dr.) $1500,000
Share Capital (Cr.) $50,000
Share Premium (Cr.) $1450,000
To record investment in Subsidiary
Revaluation reserve (Dr.) $200,000
PP&E (Cr.) $200,000
To record devaluation of PP&E
Patent - Intangible Asset (Dr.) $175,000
Revaluation reserve (Cr.) $175,000
To record the patent generated internally
December 2015
Amortization expense (Dr.) $17,500
Intangible Asset (Cr.) $17,500
Dividend Income (Dr.) $31,500
Investment (Cr.) $31,500
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $58,500 and if direct materials are $29,200, the manufacturing overhead is:
Answer:
$71,500
Explanation:
The computation of manufacturing overhead is shown below:-
We assume conversion cost = x
Conversion cost = Labor cost + manufacturing overhead
x = $58,500 + 0.55x
x = $58,500 ÷ 0.45
= $130,000
Now the manufacturing overhead is
= Conversion cost × maufacturing overhead percentage
= $130,000 × 55%
= $71,500
We simply applied the above formula
Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions. External Transaction Accounts Debit Credit 1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500 2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100 3. Purchase office supplies on account, $110. Supplies 110 Cash 110 4. Pay $410 for next month's rent. Rent Expense 410 Cash 410 5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Assess wether the junior accountant correctly proposes how to record each transaction.If incorrect provide the correction.
Answer:
Scarlet Knight Corporation
Posting of transactions:
1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500
Wrong. Correct Posting: Cash 5,500 Common Stock 5,500
2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100
Correct.
3. Purchase office supplies on account, $110. Supplies 110 Cash 110
Wrong. Correct Posting : Supplies 110 Accounts Payable 110
4. Pay $410 for next month's rent. Rent Expense 410 Cash 410
Wrong. Correct Posting: Rent Prepaid 410 Cash 410
5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Wrong. Correct Posting: Equipment 1,250 Cash 1,250
Explanation:
1. Owners invest $5,500 in the company and receive common stock. Cash is increased and Common Stock increased by $5,500.
2. 2. Receive cash of $2,100 for services provided in the current period.
Cash is increased and Service Revenue increased by the same amount.
3. Purchase office supplies on account, $110.
No cash payment is involved with this transaction since it was on account. The accounts involved and which increased by $110 are Supplies and Accounts Payable.
4. Pay $410 for next month's rent. The amount is for next month. As such no Rent Expense account is involved. Instead, the accounts involved are Rent Prepaid and cash. While Rent Prepaid increases, Cash is reduced.
5. Purchase office equipment with cash of $1,250. Equipment received value and will increase by $1,250 while Cash gave value and will reduced by $1,250 and not vice versa.
Bastille Corporation prepares monthly cash budgets.
Here are relevant operating budgets for 2017:
January February
Sales $360,000 $400,000
Purchases 120,000 130,000
Salaries 84,000 81,000
Administration expenses 72,000 75,000
Selling expenses 79,000 88,000
All sales and purchases are on account.
Budgeted collections and disbursement data are given below.
All other expenses are paid in the month incurred.
Administrative expenses include $1,000 of depreciation per month.
Other data:
1. Collections from customers: January $326,000; February $378,000.
2. Payments for purchases: January $110,000; February $135,000.
3. Other receipts: January - collection of December 31, 2016 notes receivable $15,000; February - proceeds from sale of securities $4,000.
4. Other disbursements: February $10,000 cash dividend.
The company's cash balance on January 1, 2017 is expected to be $46,000. The company wants to maintain a minimum cash balance of $40,000.
Required:
Prepare a cash budget for January and February.
Answer and Explanation:
The Preparation of the cash budget for January and February is prepared below:-
Bastille Corporation
Cash budget
for the month of January and February
Particulars January February
Beginning cash balance $46,000 $43,000
Add: Receipts
Customer collection $326,000 $378,000
Notes receivable collection $15,000 $0
Sale of marketable securities 0 $4,000
Total receipts $341,000 $382,000
Total cash available $387,000 $425,000
Less:
Cash payments during the
year
Purchases $110,000 $135,000
Salaries $84,000 $81,000
Administrative expenses $71,000 $74,000
Selling expenses $79,000 $88,000
Dividends 0 $10,000
Disbursement total $344,000 $388,000
Excess of cash
available $43,000 $37,000
Financing
Borrowings 0 $3,000
Repayments 0
Ending cash balance $43,000 $40,000
Note: February beginning balance is the balance of ending cash balance.
suppose that the manager of a firm operating in a perfectly competitive market average variable cost reaches its minimum value at
Complete Question:
Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be:
AVC = 4.0 - 0.0024Q + 0.000006Q^2 Fixed costs are $500.
Requirement:
Average variable cost reaches its minimum value at___ units of output, and the minimum value of average variable cost is $___
Answer:
Average variable cost reaches its minimum value at 200 units of output, and the minimum value of average variable cost is $3.76.
Explanation:
To find the Average Variable Cost we will have to calculate quantity and for that sake we will first of all find the point of intersection of AVC and MC to find the Quantity "Q".
So
AVC * Quantity = Total Variable Cost + Total Fixed Cost
Here
AVC = 4.0 - 0.0024Q + 0.000006Q^2
Fixed costs are $500
Total Variable Cost is TVC
Quantity is Q here
By putting values, we have:
(4.0 - 0.0024Q + 0.000006Q^2) * Q = TVC + 500
4Q - .0024Q^2 + .000006Q^3 = TVC + 500
By rearranging the above formula, we have:
TVC = 4Q - .0024Q^2 + .000006Q^3 - 500
By applying derivation rules, we have:
dTC/dQ = 4 - 0.0048Q + 0.000018Q^2
Now this equation is Marginal cost equation.
At the point of intersection of AVC and MC, both equations will equal to each other and thus we can find Q.
Mathematically,
4 - 0.0024Q + 0.000006Q^2 = 4 - .0048Q + .000018Q2
Cancelling 4 on both sides, and netting off the equation, we have:
0.0024Q = .000012Q2
1 = .000012Q2 / 0.0024Q
1 = 0.005Q
Q = 1/ 0.005 = 200 Units
By putting value of Q in AVC equation given above, we have:
AVC = 4 - 0.0024*200 + 0.000006*(200)^2
AVC = 4 - 0.48 + 0.24 = $3.76
"When organizing a meeting agenda, why is it a good idea to discuss old business before introducing new business?"
Answer:
c. It makes sense to complete discussion and reach decisions about old business before tackling new business.
Explanation:
For organizing a meeting agenda first we have to discuss for the old business as it gives the whole picture of the business i.e it is profitable or not that results in increase in sales of the company that reflected completed discussion.
Moreover, the organization also knows how to operates the day to day activities that are related to the functions of management
So it always it is better to make decisions for old business before tackling the new business
Perteet Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $6.70
Direct labor $3.25
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
Fixed selling expense $0.70
Fixed administrative expense $0.40
Sales commissions $0.50
Variable administrative expense $0.55
If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:__________
a. $28,000
b. $14,800
c. $21,400
d. $18,100
Answer:
Total overhead cost= $21,400
Explanation:
Giving the following information:
When it produces and sells 5,000 units, its average costs per unit are as follows:
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
First, we need to calculate the total fixed manufacturing overhead:
Fixed overhead= 3*5,000= $15,000
Now, we can calculate the total overhead cost for 4,000 units.
Total overhead cost= total variable cost + total fixed cost
Total overhead cost= 1.6*4,000 + 15,000
Total overhead cost= $21,400
A firm wishes to maintain an internal growth rate of 9 percent and a dividend payout ratio of 66 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 8.1 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be
Answer:
the constant debt-equity ratio is 2.580
Explanation:
Given:
dividend payout ratio of 66 percent= 0.66
Sustainable Growth rate of 9 percent = 0.09
profit margin is 8.1 percent= 0.081
total assets to sales is constant at 1
We need to calculate the Retention Ratio first,
which gives the percentage of a company's earnings that are not paid out in dividends but credited to retained earnings. It can be calculated using below expression,
Retention Ratio = 1 - Dividend pay-out ratio
Retention Ratio = 1 - 0.66 = 0.34
ROE i.e the return on equity which is a measure of the profitability of a business in relation to the equity can be calculated as;
Sustainable Growth rate = (ROE * Retention Ratio)/(1 - ROE*Retention Ratio)
0.09 = (ROE * 0.34/(1 - ROE*0.34)
0.09 (1 - 0.34ROE) = 0.34ROE
0.09 - 0.0306ROE = 0.34ROE
0.3094ROE = 0.09
ROE = 0.09/0.3094
ROE = 0.290 or 2.90%
debt-equity ratio can now be calculated as;
Return on Equity = Profit Margin×Total Assets to sales ratio×(1+D/E)
0.290 = 0.081*1*(1+D/E)
1 + D/E = 0.290/0.081
1 + D/E = 3.580
D/E = 3.580 - 1 = 2.580
Therefore, the constant debt-equity ratio is 2.580
g on january 1 playa company acquires 90 percent ownership in seaside corporation for 180,000 the fair value of noncontrolling interest what will be the amount of consolidated net assets that would be reported
The question is incomplete, the complete question is:
On January 1, Playa Company acquires 90 percent ownership in Seaside Corporation for $180,000. The fair value of the noncontrolling interest at that time is determined to be $20,000. Seaside reports net assets with a book value of $200,000 and fair value of $200,000. Playa Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time, excluding its investment in Seaside. What will be the amount of consolidated net assets that would be reported immediately after the combination?
Answer:
$680,000
Explanation:
Since Playa Company owns 90% of Seaside Corporation, it is considered Seaside's parent company and it must include all of Seaside's assets when it presents its consolidated balance sheet.
Total net assets reported = $480,000 (Playa's net assets at book value) + $200,000 (Seaside's net assets) = $680,000
Reunion Corporation provides the following information. March 31, 2018 March 31, 2019 Net Income Preferred Dividends Total Stockholders' Equity Stockholders' Equity attrbutable to Preferred $425,500 $4.380,00 $5,1320 $5,132,000 Stock Number of Common Shares Outstanding 294464 195,1 Based on the information provided above, compute the earnings per share of Reunion Corporation as of March 31, 2019. (Round any intermediate calculations and your final answer to the nearest cent.)A) $1.22 B) $2.18 C) $1.74 D) $1.46
Answer:
C) $1.74
Explanation:
2018 2019
Net Income $358,000 $425,500
Preferred Dividends $0 $0
Total Stockholders' Equity Stockholders' $4,380,000 $5,132,000
Equity attributable to Preferred Stock $0 $0
Number of Common Shares Outstanding 294,464 195,168
earnings per share = (net income - preferred dividends) / average outstanding shares
net income 2019 = $425,500preferred dividends 2019 = $0average number of common stocks = (294,464 + 195,168) / 2 = 244,816EPS = $425,500 / 244,816 = $1.738 ≈ $1.74
The manager of a canned-food processing plant has two labeling machine options. On the basis of a rate of return analysis with a MARR of 20% per year, determine (a)
The manager of a canned-food processing plant has two labeling machine options. on the basis of a rate of return analysis with a marr of 20% per year, determine (a) which model is economically better, and (b) if the selection changes, provided both options have a 4-year life and all other estimates remain the same.
Answer:
The answer is below
Explanation:
First, compare the present values (PV) of all the expenses of all the investments to make an investment decision.
Given the formula of PV = ((C1/(1+r)1) + ((C2/(1+r)2) + ((C3/(1+r)3) +…….+ ((Cn/(1+r)n) + present value of investment – present value of the salvage value
Where, Cn equals to the expense incurred in the nth period and r is the rate of interest per period.
Therefore, for Machine A, present value of the expenses is
= ((1600/(1+0.20)1) + ((1600/(1+0.20)2) + 15,000 – ((3000/(1+0.20)2)
= 1333.33 + 1111.11 + 15000 – 2083.33
= 15361.11
For Machine B, present value of the expenses is
= ((400/(1+0.20)1) + ((400/(1+0.20)2) + ((400/(1+0.20)3) + ((400/(1+0.20)4) + 25,000 - ((4000/(1+0.20)2)
= 333.33 + 277.77 + 25,000 – 2777.77
= 22833.33
Therefore, it is shown that, Machine A is the least cost alternative and should be selected.
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 3.8 percent paid annually. If the yield to maturity is 4.7 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Bond Price = 875.0948 euro rounded off to 875.09 euro
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1000 * 0.038 = 38 euro
Total periods (n)= 23
r or YTM = 0.047 or 4.7%
The formula to calculate the price of the bonds today is attached.
Bond Price = 38 * [( 1 - (1+0.047)^-23) / 0.047] + 1000 / (1+0.047)^23
Bond Price = 875.0948 euro rounded off to 875.09 euro
You need to make 9
servings of roast beef gravy.
Each serving takes 1 quart
of brown stock.
How many quarts of brown
stock do you have to make?
Answer:
Answer:
9/4 = 2 1/4 = 2.25
Explanation:
1 serving = 1/4 brown stock
9 servings = x brown stock
Do cross mutliplication and divide:
(9 x 1/4) ÷1
9/4 = 2 1/4 = 2.25
A firm sells peanuts in a perfectly competitive market. Upon increasing production output from 60 packages to 75 packages, the total revenue increased from $300to $375. What was the marginal revenue of this increase in production
Answer:
$5
Explanation:
The computation of marginal revenue is shown below:-
Marginal revenue = Change in total revenue ÷ Change in output
= ($375 - $300) ÷ (75 - 60)
= $75 ÷ 15
= $5
The marginal revenue could be computed by dividing the change in total revenue from the change in output so that the increased in production could come
Check my work Check My Work button is not enabled Item 1Item 1 1.11 points QS 7-9 Identifying journal of entry LO P1, P2, P3, P4 Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Identify the journal in which each of the transactions should be recorded.
Answer:
Purchases and Sales made on account/ bought on credit will go to the Purchases or Sales journal respectively. When transactions are done in cash, payments go to the Cash Payments Journal and cash received goes to the Cash Receipts Journal.
May 1 - Purchase Journal. May 8 - Sales Journal. May 14 - Purchases Journal May 17 - Purchase JournalMay 24 - Cash Receipt JournalMay 28 - Cash Payments JournalMay 29 - Cash Payments JournalSquirrel Tree Services reports the following amounts on December 31.
Assets Liabilities and Stockholders’ Equity
Cash $ 8,300 Accounts payable $ 11,500
Supplies 2,400 Salaries payable 4,100
Prepaid insurance 4,100 Notes payable 26,000
Building 78,000 Common stock 40,000
Retained earnings 11,200
In addition, the company reported the following cash flows.
Cash Inflows Cash Outflows
Customers $ 96,000 Employee salaries $ 40,000
Borrow from the bank (note) 38,000 Supplies 22,000
Sale of investments 35,800 Dividends 15,500
Purchase building 98,000
Required:
1. Prepare a balance sheet.
2. Prepare a statement of cash flows. (Cash outflows and decreases in cash should be indicated by a minus sign.)
1. The preparation of the balance sheet is shown below.
2. The preparation of the cash flow statement is shown below.
1. Balance sheet:Squirrel Tree Services
Balance Sheet
For the year ended 31st December
Assets Amount Liabilities Amount
Cash $8,300 Accounts payable $11,500
Supplies $2,400 Salary payable $4,100
Prepaid insurance $4,100 Notes payable $26,000
Building $78,000
Total liabilities $41,600
Common stock $40,000
Retained earning $11,200
Total stockholder
equity $51,200
Total liabilities and
Total assets $92,800 stockholder equity $92,800
B. Cash flow statement:
Squirrel Tree Services
Cash flow
For the year ended 31st December
Particulars Amount
Cash flow from operating activities
Cash inflow from customers $96,000
Cash outflow for salaries ($40,000)
Cash outflow for supplies ($22,000)
Net cash flow from operating activities $34,000
Cash flow from investing activities
Sale of investment $35,800
Purchase of building ($98,000)
Net cash flow from investing activities ($62,200)
Cash flow from financing activities
Borrow from bank $38,000
Dividends ($15,500)
Net cash flow financing activities $22,500
Net increase in cash ($5,700)
Beginning cash of the year $15,200
Ending cash of the year $9,500
Working note
we deduct the cash inflow from cash outflow and add cash to reach the beginning cash of the year.
Learn more about the balance sheet here: https://brainly.com/question/24531985
Using the post-closing trial balance, calculate the total assets, liabilities, and equity, and enter those amounts in the basic accounting equation.
SMART TOUCH LEARNING
Post-Closing Trial Balance December 31, 2016
Balance
Account Title Debit Credit
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Common Stock 8400
Retained Earnings 22300
Total 1001,00 100100
Answer:
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
Explanation:
SMART TOUCH LEARNING
Balance Sheet
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Total Assets $ 87,000
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Total Liabilities $ 56,300
Common Stock 8400
Retained Earnings 22300
Owner's Equity / Retained Earnings $30,700
Total Liabilities and Owner's Equity $ 87,000
The accounting equation is
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
32900+ 6300+400 + 10900+ 10900+25600 = 17500 + 2600 + 1300 + 1700 + 33200 + 8400 22300
The total of Assets of a company are always equal to the total Liabilities and Owner's Equity.
Adding the assets we get $ 87,000 which is the same as the total of Liabilities and Owner's Equity.