Answer:
The reasonable explanation is that they are trying to take advantage of government tax incentives which are usually available to companies which retain their earning for investment purposes.
Explanation:
Many governments usually subject distributed profit to corporate tax. When this happens, a huge chunk of profit is eroded. So many companies would rather re-invest their earnings to increase the value of their stock in the secondary market.
The average corporate tax rate in the EU, for instance, is 21.77% whilst the average corporate tax rate in the OECD for is 23.59%.
OECD, by the way, stands for Organisation for Economic Co-operation and Development and the United States of America is a member.
Cheers!
During 2019, Lincoln Company hires 20 individuals who are certified to be members of a qualifying targeted group. Each employee works in excess of 600 hours and is paid wages of $16,600 during the year. Determine the amount of Lincoln's work opportunity credit.
Answer:
$48000
Explanation:
because employees work an excess of 600 hours which is more than 400 hour and they are certified, Lincoln company can take the full credit.
first $6,000 at 40% for each worker
= (6,000 X 40 percent) x 20 workers
= 6000 x 0.40 x 20
= 48000
The amount of Lincoln's work opportunity credit is $48000
Condensed financial data of Windsor, Inc. follow. Windsor, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $56,560 $33,880 Accounts receivable 61,460 26,600 Inventory 78,750 71,995 Prepaid expenses 19,880 18,200 Long-term investments 96,600 76,300 Plant assets 199,500 169,750 Accumulated depreciation (35,000) (36,400) Total $477,750 $360,325Liabilities and Stockholders' Equity Accounts payable $71,400 47,110 Accrued expenses payable 11,550 14,700 Bonds payable 77,000 102,200Common stock 54,000 122,500Retained earnings 1,163,800 73,815Total $477,75 $360,325 Windsor, Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue Less: Cost of goods sold $94,822 Operating expenses, excluding depreciation 8,687 Depreciation expense 32,550 Income tax expense 19,096 Interest expense 3,311Loss on disposal of plant assets 5,250 163,716Net income $108,206 Additional information: 1. New plant assets costing $70,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $40,250 and accumulated depreciation of $33,950 were sold for $1,050 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $18,221 was declared and paid during the year. Prepare a statement of cash flows using the indirect method.
Answer:
Windsor, Inc.
Statement of Cash Flows
December 31, 2022
Cash flow from operating activities
Net income $108,206
Adjustments to net income $19,005
Depreciation expense $32,550Loss on disposal of assets $5,250Increase in prepaid expenses ($1,680)Increase in accounts payable $24,290Increase in accounts receivable ($34,860)Increase in inventory ($6,755)Decrease in accrued expenses payable ($3,150)
Total cash flow from operating activities $123,851
Cash flow from investing activities
Increase in long term investments ($20,300)
Purchase in new plant assets ($70,000)
Proceeds from disposal of assets $1,050
Total cash flow from investing activities ($89,250)
Cash flow from financing activities
Issuance of common stocks $31,500
Payment of bonds payable ($25,200)
Dividends paid ($18,221)
Total cash flow from financing activities ($11,921)
Total increase in cash $22,680
Cash balance December 31, 2021 $33,880
Cash balance December 31, 2022 $56,560
Explanation:
2022 2021
Cash $56,560 $33,880 +22,680
Accounts receivable 61,460 26,600 +34,860
Inventory 78,750 71,995 +6,755
Prepaid expenses 19,880 18,200 +1,680
Long-term investments 96,600 76,300 +20,300
Plant assets 199,500 169,750 +29,750
Accumulated depreciation (35,000) (36,400) -1,400
Total $477,750 $360,325
Liabilities and Stockholders' Equity
Accounts payable $71,400 47,110 +24,290
Accrued expenses payable 11,550 14,700 -3,150
Bonds payable 77,000 102,200 -25,200
Common stock 154,000 122,500 +31,500
Retained earnings 163,800 73,815 +89,985
Total $477,750 $360,325
Depreciation expense 32,550
Interest expense 3,311
Loss on disposal of plant assets 5,250
Net income $108,206
cash dividend of $18,221
Cawley Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income Tingler Shocker Stunner $304,000 $496,000 $200,000 149,800 193,300 139.400 154,200 302,700 60,600 119.984 226,816 93,200 $34.216 $75,884 $(32,600) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,000 (Shocker), and $34.000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. (a) Compute current net income for Cawley Company. Net income $ 77500 (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $296,000 common costs to the two remaining product lines based on their relative sales.)
Answer:
Explanation:
Computation of current net income for Cawley Company
Particulars Tingler Shocker Stunner Total
Sales $304,000.00 $496,000.00 $200,000.00 $1,000,000.00
Variable expense $149,800.00 $193,300.00 $139,400.00 $482,500.00
Contribution Margin (Sales - Variable
expenses) $154,200.00 $302,700.00 $60,600.00 $517,500.00
Fixed expenses $119,984.00 $226,816.00 $93,200.00 $440,000.00
Net Income (Contribution Margin - Fixed
expenses) $34,216.00 $75,884.00 -$32,600.00 $77,500.00
Computation of net income by product line and in total for Cawley Company if the company discontinues the Stunner product line
Particulars Tingler Shocker Total
Sales $304,000.00 $496,000.00 $800,000.00
Variable expense $149,800.00 $193,300.00 $343,100.00
Contribution Margin
(Sales - Variable expenses) $154,200.00 $302,700.00 $456,900.00
Fixed expenses:
Common Fixed expenses
(296000*304000/800000)
(296000*496000/800000) $112,480.00 $183,520.00 $296,000.00
Direct fixed expenses $30,000.00 $80,000.00 $110,000.00
Total Fixed expenses $142,480.00 $263,520.00 $406,000.00
Net Income (Contribution Margin
- Fixed expenses) $11,720.00 $39,180.00 $50,900.00
Tingler Net Income $11,720.00
Shocker Net Income $39,180.00
Total Net Income $50,900.00
=============
Should Cawley eliminate the stunner produc tline?
NO
Net income would decrease from $ 77,500 to $ 50900
Another differing viewpoint is offered by Vivek Wadhwa. Mr. Wadhwa agreed with Mr. Grove that a bigger focus on creating U.S. jobs would be a good thing. But he disagreed with Mr. Grove's proposed solution. What was Mr. Wadhwa's main concern about Andy Grove's proposal to create incentives for large-scale projects
Answer:
He stated that most United states companies that are blue-chip will be the first to suffer the effects from a trade war.
Explanation:
Solution
Mr. Wadhwa came in terms with Andy Grove not fully as he did not find the protectionist trade war as acceptable.
He stated that it will greatly affects those firms who got their sales majorly from abroad. although, he favored need of more job creation in the United States.
Mr. Wadhwa’s main issue was that going for protectionist trade, where products which are produced off-shore and then transported to United States will be forced to pay more taxes, this will have a negative effect over existing large Blue chip organizations or firms.
Hence, he suggested to focus more over mid-career entrepreneurship.
The following transactions occurred for Lantana Company during its first month of operations and have been recorded in the T-accounts.
a. Received $50,000 cash from owners in exchange for common stock.
b. Purchased land for $20,000, paid $5,000 in cash and signed a 2-year note for the remainder.
c. Bought $900 of supplies on account.
d. Purchased $10,000 of equipment, paying cash.
e. Paid $500 on account for supplies purchased in transaction (c).
Required:
1. Determine the T-account balances.
2. Using the information in the transactions, prepare a classified balance sheet for Lantana Company.
(List long-term assets in alphabetical order)
Answer:
1. T-account balances.
Common stock
$50,000
Land
$20,000
Cash
$34,500
Note Payable
$15,000
Supplies
$900
Trade Payable
$400
Equipment
$10,000
2. A classified balance sheet for Lantana Company
Non - Current Assets
Land $20,000
Equipment $10,000
Total Non - Current Assets $30,000
Current Assets
Supplies $900
Cash $34,500
Total Current Assets $35,400
Total Assets $65,400
Equity and Liabilities
Equity
Common stock $50,000
Total Equity $50,000
Current Liabilities
Trade Payable $400
Total Current Liabilities $400
Non - Current Liabilities
Note Payable $15,000
Total Non - Current Liabilities $15,000
Total Equity and Liabilities $65,400
Explanation:
T-account balances.
Common stock
$50,000
Land
$20,000
Cash
$50,000 - $5,000 - $10,000 - $500 = $34,500
Note Payable
$15,000
Supplies
$900
Trade Payable
$900 - $500 = $400
Equipment
$10,000
The T-accounts and the classified balance sheets are the financial statements or the annual reports of the company that provides information regarding the health and wealth of the firm or the corporate.
The T-account balances and the classified balance sheet have been attached below.
To know more about the T account balances and the classified balance sheet, refer to the link below:
https://brainly.com/question/14695345
1. Westmorland makes ink that it uses in ball point pens. The Company produces two colors of ink. One is blue; the other is red. Ink is made in batches with setup costs being $2,000 per batch. Demand for blue ink is significantly stronger than for red ink. During the most recent week, the company made 2 batches of ink, one blue the other red. It requires 1 hour of labor to make a gallon of ink regardless of color. There were 300 hours of labor used to make the blue ink and the 100 hours of labor used to make the red ink. Under these circumstances:_______.
a. more of the total setup cost should be assigned to the red ink than to the blue ink.
b. more of the total setup cost should be assigned to the blue ink than to the red ink.
c. the total setup cost should be allocated equally between the red and blue ink.
d. one of the answers is correct.
If the Company uses a single company wide overhead rate based on labor hours, the amount of setup cost allocated to the:_______.
a. blue ink is $4,000 and red ink is zero.
b. blue ink is $1,000 and red ink is $3,000
c. blue ink is $3,000 and red ink is $1,000.
d. blue ink is $2,000 and red ink is $2,000.
2. Which of the following is an activity-based cost driver?
A. Number of machine setups
B. Machine hours
C. Material cost
D. All of these answers are correct.
3. What is the principal reason that direct labor hours is no longer an effective base for allocating indirect costs in many modern manufacturing companies?
A. Movement from full-time to part-time workers
B. Automation
C. Workers are not as productive as they were in the past
Answer:
1) c. the total setup cost should be allocated equally between the red and blue ink.
Setup costs depend on the number of production batches, since one production batch was made for each color of ink, then the costs should be allocated equally.
2. Which of the following is an activity-based cost driver?
A. Number of machine setups
Other examples include production orders, quality inspections, maintenance orders, etc.
3. What is the principal reason that direct labor hours is no longer an effective base for allocating indirect costs in many modern manufacturing companies?
B. Automation
The main reason why so many manufacturing jobs have been lost in recent years is not because of China or Mexico (or other countries with cheap labor), it is automation. Most modern companies are replacing workers with robots.
Explanation:
setup costs $2,000 per batch
one red and one blue
Demand for blue ink is significantly stronger than for red ink
1 hour of labor per gallon of ink
300 gallons of blue produced
100 gallons of red produced
Gritz-Charlston is a 300-unit luxury hotel. All rooms are occupied when the hotel charges $80 per day for a room. For every increase of x dollars in the daily room rate, there are x rooms vacant. Each occupied room costs $22 per day to service and maintain. What should the hotel charge per day in order to maximize profit?
Answer:
The hotel should charge $201 per day in order to maximize profit
Explanation:
According to the given data we have the following:
The number of occupied rooms is 300-x, and x vacant rooms.
Hence, The revenue R(x) = (300-x) * ($80 + x), the number of occupiedrooms times the charge per room.
The cost C(x) = (300-x) * $22.
Therefore, The profit P(x) = R(x)-C(x) = (300-x) (58 + x) = 17400 + 242 x -x^2.
P'(x) = 242 - 2x.
Critical point: x= 121.
So Charge = $80 + x = $80 + $121 = $201
The hotel should charge $201 per day in order to maximize profit
In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of Muninger common stock for $27,500. Mar. 1 Purchased 700 shares of Tatman common stock for $17,500. Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.50 per share on the Muninger common stock. Aug. 1 Sold 167 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $41,000. At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.
Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer: kindly check attached picture
Explanation:
Kindly check attached picture
The production budget for Manner Company shows units to be produced as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, August, and September.
Answer:
Results are below.
Explanation:
Giving the following information:
Production:
July= 650 units
August= 710 units
September= 570 units
Each unit produced requires one hour of direct labor.
he direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September.
We need to prepare the direct labor budget:
July:
Direct labor= (650*1)*16= $10,400
August:
Direct labor= (710*1)*16= $11,360
September:
Direct labor= (570*1)*16.75= $9,547.5
McKerley Corp. has preferred stock outstanding that will pay an annual dividend of $5.65 per share with the first dividend exactly 15 years from today. If the required return is 3.99 percent, what is the current price of the stock?
Answer:
$81.88
Explanation:
We need to first calculate the terminal value which is the value in perpetuity for this preferred stock as shown below:
terminal value of the dividend =dividend/required rate of return
dividend is $5.65
required rate of return is 3.99%
terminal value of dividend=$5.65/3.99%=$ 141.60
The preferred stock price is the present value of the dividend's terminal value value
Present value=terminal value/(1+r)^n
r is the rate of return of 3.99%
n is the of years involved which is 14,15 years from today means the end of the 14th year
present value=$141.60/(1+3.99%)^14=$81.88
Lara’s Inc. is currently an unlevered firm with 450,000 shares of stock outstanding, with a market price of $15 a share. The company has earnings before interest and taxes of $314,000. Lara's met with his bankers, Warne Incorporated and agreed to borrow $825,000, at 5 percent. You are an ardent investor and you currently own 20,000 shares of Lara's stock. If you seek to unlevered your position; how many shares of Lara's stock will you continue to own, if you can loan out funds at 5 percent interest? Ignore taxes in your deliberations. Kindly show all workings. (15 marks)
Answer:
The answer is 17556 shares.
Explanation:
Solution
Given that:
Now
In this example of Home made leverage.
It suggests that if taxes are not available and no other costs are there, an investor can create capital structure similar to Firm.
Here, firm is proposing to borrow 825000.
The all equity firm value is given as:
= 450000 x 15 = 6750000
As taxes are not present, the value of firm will not alter, total value will remain at 6750000
So
After issue of debt, the debt ratio will be given as :
= 825000/6750000 = 12.2222%
This is the important point.
Thus
To create same capital structure, you have to sell 12.2222% of your shares and the amount received from sale of shares, purchase debt
So you have to sell = 12.2222% x 20000 = 2444.44 shares
and continue to hold = 20000 - 2444.44 = 17555.56 share
17555.56 = 17556
Therefore, the amount of share you will continue own is 17556 share.
Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.
Available-for-Sale Securities Cost Fair Value
Company A bonds $534,100 $492,000
Company B notes 159,140 155,000
Company C bonds 662,400 642,140
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
Jan. 29 Sold one-half of the Company B notes for $78,820.
July 6 Purchased bonds of Company X for $122,100.
Nov. 13 Purchased notes of Company Z for $267,300.
Dec. 9 Sold all of the bonds of Company A for $524,800.
The fair values at December 31 are B, $82,300; C, $603,800; X, $120,000; Z, $276,000; W, $382,500 and Y, $1,062,500
Required:
a. Determine the amount Stoll should report on its December 31, 2017, balance sheet for its long-term investments in available-for-sale securities.
b. Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
c. Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
Answer:
a. Determine the amount Stoll should report on its December 31, 2017, balance sheet for its long-term investments in available-for-sale securities.
Company B notes $82,300 Company C bonds $603,800Company X bonds $120,000Company Z notes $276,000b. (same as c.)Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
Dr Company B notes 4,800 Cr Unrealized gain on Company B notes 4,800 (= $82,300 - $77,500)Dr Unrealized loss on Company C bonds 38,340 (= $603,800 - $642,140) Cr Company C bonds 38,340Dr Unrealized loss on Company X bonds 2,100 (= $120,000 - $122,100) Cr Company X bonds 2,100Dr Company Z notes 8,100 Cr Unrealized gain on Company Z notes 8,100 (= $276,000 - $267,300)Explanation:
beginning of the year cost fair value
Company A bonds $534,100 $492,000
Company B notes $159,140 $155,000
Company C bonds $662,400 $642,140
since available for sale assets must be recorded at fair value, we must assume that the company prepared the adjusting entries at the end of the previous year (unrealized gains or losses):
Jan. 29 Sold one-half of the Company B notes for $78,820.
Dr Cash 78,820
Cr Company B notes 77,500
Cr Gain on sale of Company B notes 1,320
July 6 Purchased bonds of Company X for $122,100.
Dr Company X bonds AFS 122,100
Cr Cash 122,100
Nov. 13 Purchased notes of Company Z for $267,300.
Dr Company Z bonds AFS 267,300
Cr Cash 267,300
Dec. 9 Sold all of the bonds of Company A for $524,800.
Dr Cash 524,800
Cr Company A notes 492,000
Cr Gain on sale of Company B notes 32,800
On January 1, 2012, Coronado Industries purchased for $762000, equipment having a useful life of ten years and an estimated salvage value of $45000. Coronado has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $162500. As a result of this sale, Coronado should recognize a gain of
Answer:
$45,800
Explanation:
Coronado Industries
Cost of Equipment $762,00
Accumulated Depreciation
( $762,000 - 45,000 ) /10*9 years
=$717,000/10×9 years
=71,700×9 years
=$645,300
Therefore Dec 31,2012 book value of equipment will be:
= $762,000 - $645,300
= $116,700
Equipment sold $162,500
The gain to be recognize will be
= $162,500 - $116,700
= $45,800
1 January ,2012 to 31 December,2020 will give us 9 years
Answer:
$45,800
Explanation:
Given that: the cost of the equipment = $762000
We can determine the accumulated depreciation as follows:
Accumulated depreciation= ((cost of equipment - salvage value )/useful lifetime )×Depreciation from 2012 to 2020
[tex]\mathbf{Accumulated \ depreciation= \dfrac{762,000-45,000}{10}*9 years}[/tex]
[tex]\mathbf{Accumulated \ depreciation= \dfrac{717,000}{10}*9 years}[/tex]
[tex]\mathbf{Accumulated \ depreciation}=[/tex] $ 645,300
The Book value of equipment as on December 31,2020 = cost of equipment - accumulated depreciation
= $762,000 - $645,300
= $ 116,700
Also; the sale value = $162500
The gain to be recognize = $162,500 - $ 116,700 = $45,800
An overreaction by developers in response to a change in demand typically results in A. an increase in values. B. a decrease in vacancies. C. a decrease in value with a decrease in vacancies. D. a decrease in rents with an increase in vacancies.
Answer:
C
Explanation:
Over reaction to change in demand means that unnecssary high or low time is to be spent on a given work. This results in inefficiency. Hence decreases value with an ultimate decrease in vacancies.
Madrid Company plans to issue 8% bonds with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on January 1. The remaining $400,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1. Record the entry for the first interest payment on June 30. 2. Record the entry for the July 1 cash sale of bonds.
Answer:
The first interest payment:
Dr interest expense $144,000
Cr cash $144,000
The issuance of the remaining bonds"
Dr cash $400,000
Cr bonds payable $400,000
Explanation:
The first interest paid on the bonds on 30 June is $144,000 ($3,600,000*8%*6/12) which is debited to interest expense account and credited to cash account as outflow of cash from the company.
The cash received from selling the remaining bonds is par value of $400,000 which is debited to cash account and credited to bonds payable account.
Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:
Equivalent units of production—direct materials 124,000 EUP
Equivalent units of production—conversion 107,200 EUP
Costs in beginning Work in Process—direct materials $67,800
Costs in beginning Work in Process—conversion $ 49,800
Costs incurred in February—direct materials $ 572,900
Costs incurred in February—conversion $ 719,500The cost per equivalent unit of production for conversion is:___________.
a. $12.06
b. $6.71
c. $7.18
d. $6.20
e. $5.98
Answer:
The correct option is C,$7.18
Explanation:
The cost per equivalent unit of production for conversion is the costs in beginning work in process—conversion plus costs incurred in February—conversion, divided by the equivalent unit of production-conversion
the costs in beginning work in process—conversion is $49,800
costs incurred in February—conversion is $719,500
equivalent units of production-conversion is 107,200
The cost per equivalent unit of production for conversion = ($49,800+$719,500)/107,200=$7.18
McHale Enterprises has the following incomplete General Journal entry for the most recent pay date:
Oct 27 Wages and salaries expense 522 $299,384.00
Federal withholding tax payable 220 $50,895.28
Social Security tax payable 221 18,040.82
Medicare tax payable 222 4,219.22
401(k) contributions payable 223
Health Insurance payable 224 8,655.68
Savings bonds payable 227 1,912.00
Wages and salaries payable 226 208,817.61
Oct 27 Wages and salaries payable 226 208,817.61
Cash 101 208,817.61
What is the amount of the 401(k) contributions for the pay date?
Answer:pp
Explanation:
The information below pertains to Barkley Company for 2015.
Net income for the year $1,160,000
7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 2,010,000
6% convertible, cumulative preferred stock,
$100 par value; each share is convertible into 3 shares of common stock 4,080,000
Common stock, $10 par value 5,800,000
Tax rate for 2021 20%
Average market price of common stock $25 per share
There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 82,100 shares of common stock at $20 per share.
(a) Compute basic earnings per share for 2015.
(b) Compute diluted earnings per share for 2015.
Answer:
a. $1.38
b. anti-dilutive.
Explanation:
Basic Earnings Per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Stock Holders
Earnings Attributable to Holders of Common Stock Calculation :
Net income for the year $1,160,000
Less Bond Interest after tax ($2,010,000 × 7% × 80%) ($112,560)
Less Preference Stock dividend ($4,080,000 × 6%) ($244,800)
Earnings Attributable to Holders of Common Stock $802,640
Weighted Average Number of Common Stock Holders Calculation :
Common Stock (5,800,000 / $10) 580,000
Weighted Average Number of Common Stock Holders 580,000
Basic Earnings Per Share = $802,640 / 580,000
= $1.38
Diluted Earnings Per Share = Adjusted Earnings Attributable to Holders of Common Stock / Adjusted Weighted Average Number of Common Stock Holders
Adjusted Earnings Attributable to Holders of Common Stock Calculation :
Earnings Attributable to Holders of Common Stock $802,640
Add Back Bond Interest after tax ($2,010,000 × 7% × 80%) $112,560
Add Back Preference Stock dividend ($4,080,000 × 6%) $244,800
Adjusted Earnings Attributable to Holders of Common Stock $1,160,000
Adjusted Weighted Average Number of Common Stock Holders Calculation
Weighted Average Number of Common Stock Holders 580,000
Add Convertible Bonds ($2,010,000 / $1,000 × 30) 60,000
Add Convertible Preference Shares ($4,080,000/$100 ×3) 122,400
Less Common Stock Options (82,100)
Adjusted Weighted Average Number of Common Stock Holders 680,300
Diluted Earnings Per Share = $1,160,000 / 680,300
= $ 1.70
Conclusion : Convertible Bonds, Convertible Preference Shares and Common Stock Options are anti-dilutive.
Project managment strategy depends on which of the followings?
a. The number of days that the project manager is allowed to complete the project.
b. The number of employees one person supervises.
c. The number of levels from top to bottom in an organization.
d. The number of departments involved in a project.
Answer:
a
Explanation:
The first step in any project management strategy is to build a timeline of all the necessary steps required in execution of the project.
In the story of New England Wire and Cable, the company was in an unusual situation of being worth more dead than alive. What economic principle was violated when Larry Garfield tried to get control of the firm, break it up, sell the assets, and make a profit
Answer: The Law of One Price
Explanation:
In the movie, Other People's Money, Danny DeVito plays Lawrence “Larry the Liquidator” Garfield who wanted to buy New England Wire and Cable because it was in such a good position financially and sell it for more than it was worth at the time to make profit.
This move would violate the Law of One Price because the law states that a good should be sold at the same price regardless of location or status.
If the company sells at a higher price when it is dead as opposed to when still operational, that means that it is selling at different prices. For it not to violate the Law of One Price it needs to be worth the same alive and operational as it is dead and to be sold off.
The economic principle violated by Larry Garfield in his attempt to gain control of the New England Wire and Cable, breaking it up to sell the assets and make a profit is e. The law of one price.
If arbitrage opportunities are eliminated from the transaction, Larry would not be able to make a profit by breaking up the assets of the company because they would fetch the same price when the company is sold as a whole.
Answer Choices:
a. Diminishing marginal return
b. Diminishing marginal utility of wealth
c. Non-positive marginal utility of wealth
d. Externalities
e. The law of one price
Thus, the economic principle violated with Larry Garfield's attempt was e. The law of one price.
Learn more about the law of one price here: https://brainly.com/question/24693548
At January 1, 2008, Ceatric, Inc. has beginning inventory of 2,000 surfboards. Ceatric estimates it will sell 5,000 units during the first quarter of 2008 with a 12% increase in sales each quarter. Ceatric’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2008?
Answer:
Sales= $940,800
Explanation:
Giving the following information:
At January 1, 2008, Ceatric, Inc. has beginning inventory of 2,000 surfboards. Ceatric estimates it will sell 5,000 units during the first quarter of 2008 with a 12% increase in sales each quarter. Each surfboard costs $100 and is sold for $150.
First, we need to calculate the number of units sold in the third quarter:
1stQ= 5,000
2ndQ= 5,000*1.12= 5,600
3rdQ= 5,600*1.12= 6,272
Now, the sales revenue:
Sales= 6,272*150= $940,800
Variable costs= 6,272*100= (627,200)
Gross profit= $313,600
Which of the following is not an example of organizational citizenship behaviour? telling your friends about the company’s great work environment contributing to a fund for a coworker to help with medical bills discouraging a friend from applying for a job at the company working over the weekend to make sure a project gets done volunteering to help a colleague meet a deadline
Answer: discouraging a friend from applying for a job at the company
Explanation: i would choose this one because organizational is behavior's that is perceived as a positive, extra-role, pro-social demeanor which benefits the employer and enhances the overall success of a business discouraging a friend from applying for a job at the company that is very a discouraging to a person no positivity there lol
Assume you are a manager at Nordstrom, a department store with high social demands as a result of its strong focus on customer service. You already assess cognitive ability for incoming employees, but now you also want to obtain measures of personality. Of the Big Five, which of the following two factors would be the most valid predictors of performance?
a. Conscientiousness and openness to experience
b. Neuroticism and agreeableness
c. Agreeableness and openness to experience
d. Conscientiousness and extraversion
e. Neuroticism and extraversio
Answer:
Neuroticism and extraversion
Explanation:
Neuroticism and extraversion would be the most valid predictors of performance
Incoming employees who score high on neuroticism are more likely than average to be moody and to experience such feelings as anxiety, worry, fear, anger, frustration, envy, jealousy, guilt, depressed mood, and loneliness. Such employees would respond badly to stress.
Extraversion is to possess outgoing, talkative and energetic behavior.
the answer is option E.
Neuroticism and extraversionAccording to Neuroticism and also extraversion would be the most valid predictors of performanceWhen Incoming employees who score high on neuroticism are more likely than average to be moody and also to experience such feelings as anxiety, worry, fear, anger, frustration, envy, jealousy, guilt, depressed mood, and also loneliness. Although Such employees would respond badly to stress.Thus, Extraversion is to possess outgoing, talkative, and also energetic behavior.Find out more information about Extraversion here:
https://brainly.com/question/7264389
In 2006, Atlanta once again hosted the Peachtree Road Race, a running event that attracts many world-caliber racers. This year race officials also sanctioned a race conducted in Iraq so that soldiers from the state would not have to miss the annual event. The winners of the Mideast race as well as scenes of the actual race were televised. In terms of a promotional mix, this Iraqi Peachtree Race was as example of:
a. advertising and personal selling efforts.
b. strategic product promotions and resulting sales.
c. a target marketing strategy.
d. sales promotion efforts.
e. a public relations strategy and resulting publicity
Answer:
The correct answer is: e. a public relations strategy and resulting publicity.
Explanation:
In the scenario exemplified above, it can be considered that in terms of the promotional mix, the Iraqi Peachtree race was an example of a public relations strategy, as the function of these professionals is to promote an event, brand or company with the objective of attracting positive publicity. , which was what happened in the case of the race.
Public relations activities helped to generate publicity for the event through television media reports.
1. A country’s national saving is 20% of its national income and it needs $4 worth of capital for producing $1 worth of goods and services on the average. The economic planners want the country to grow at the rate of 10% per annum and expect that there will be no shortage of labor in the growth process. Is this growth rate consistent with what you have learned from the Harrod Domar Model? If not, how can the planners make a plan to achieve a 10% growth rate?
Answer: No. The growth rate inconsistent with what was learned from the Harrod Domar Model.
Explanation:
The Harrod–Domar model is a model of economic growth that is used to explain the growth rate of an economy in terms of the level of capital and saving. The Harrod-Domar models assumes that a full-employment level of income exist and that there is no government interference in the economy.
Based on the question, the growth rate will be: = 20% ÷ 4= 5%.
To achieve a 10 % growth rate in the economy, the savings must either rise to 40% or capital output ratio drop to 2. For example, when growth rate rises to 40%, this will be= 40% ÷ 4 = 10%.
leutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Assembly Department's factory overhead rate is
Answer:
$5.28 per direct labor hour
Explanation:
The computation of the assembly department factory overhead rate is shown below:
The Assembly Department's factory overhead rate = Estimated total factory overhead ÷ Total Direct Labor hours
where,
Estimated total factory overhead for Assembly Department = $71,800.
And,
Total Direct Labor hours is
= [910 units × 6 hours per unit] + [2,710 × 3 hours per unit]
= 5,460 hours + 8,130 hours
= 13,590 direct labor hour
So, the assembly department factory overhead rate is
= $71,800 ÷ 13,590 direct labor hour
= $5.28 per direct labor hour
Tom is responsible for ordering hardware for a custom home his company is building. The contractor installing the hardware is scheduled to start in 5 working days, but the hardware is on backorder and will not arrive for another 9 working days. Fortunately, Tom has 10 days of slack; however, he shares this slack with the hardware installer. He will have to let the contactor know that the hardware will be ready 4 days later than expected and that the slack for the installer has been reduced by 4 days. Tom and the installer share 10 days of:_______
Answer:
Total slack
Explanation:
Total slack is defines as the time that tasks are delayed which will eventually affect the finishing date of a project.
Total slack can be either positive or negative. Positive slack is when delay in tasks do not affect project finish date, and negative slack are delays that affect project finish date.
Total slack is calculated as difference between smaller value of late finish and early finish.
Tom shares 4 days of his slack with the contractor.
So he has 10- 4 = 6 days slack
The total slack is 6 + 4= 10 days
In this scenario the difference between late start and early start is 9 - 5= 4 days
Flint Company began operations on January 1, 2015, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2018. The following information is available for the years 2015–2017.
Net Income Computed Using
Average-Cost Method
FIFO Method
LIFO Method
2015 $16,080 $18,980 $11,940
2016 17,980 20,800 14,020
2017 19,920 24,890 17,050
(a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
Inventory
Retained Earnings
(b) Determine net income to be reported for 2015, 2016, and 2017, after giving effect to the change in accounting principle.
Net Income
2015 $
2016 $
2017 $
(c) Assume Flint Company used the LIFO method instead of the average cost method during the years 2015–2017. In 2018, Flint changed to the FIFO method. Prepare the journal entry necessary to record the change in principle. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
Answer: Please refer to Explanation
Explanation:
When using FIFO (First In First Out), a company sells it's earlier Stock first before it sells the latter one.
When using LIFO ( Last In First Out), a company sells it's latter Stock first before it sells the earlier one.
The Average Cost averages the both.
a) To record a change from the Average Cost method to the FIFO method, first take the difference between the total revenues from the two methods and then credit the difference to the Retained Earnings account if FIFO is higher to signify the increase in Retained Earnings as a result of the change. The corresponding entry should be to the Inventory account to show the rise in Inventory associated with the prices of goods rising and therefore later inventory being priced higher.
Total for Average Cost Method.
= 16,080 + 17,980 + 19,920
= $53,980
Total for FIFO
= 18,980 + 20,800 + 24,890
= $64,670
Difference is,
= $64,670 - $53,980
= $10,690
Journal Entry will be,
DR Inventory $10,690
CR Retained Earnings $10,690
( To record change of Accounting Method to FIFO)
b) The change has been from the Average Cost to the FIFO method. The question already gives the numbers related with calculating the Net Income using the FIFO method.
The answer is therefore,
FIFO
2015 - $18,980
2016 - $20,800
2017 - $24,890
c) Going by the same method as in A, you first take the difference between the totals of using LIFO and FIFO. The difference will be credited to the Retained Earnings account if FIFO is higher to signify the increase in Retained Earnings as a result of the change. The corresponding entry should be to the Inventory account to show the rise in Inventory associated with the prices of goods rising and therefore later inventory being priced higher.
FIFO Total
= 18,980 + 20,800 + 24,890
= $64,670
LIFO Total
= 11,940 + 14,020 + 17,050
= $43,010
Difference will be,
= 64,670 - 43,010
= $21,660
Journalizing it,
DR Inventory $21,660
CR Retained Earnings $21,660
(To record change on Accounting Method to FIFO)
The following information relates to Wildhorse Co. for the year ended December 31, 2020: net income $1,305 million; unrealized holding loss of $11.2 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $56.4 million on December 31, 2019. Assuming no other changes in accumulated other comprehensive income.
Determine:
a. Other comprehensive income for 2017
b. Comprehensive income for 2017.
c. Accumulated other comprehensive income at December 31, 2017.
Answer:
a. The Other comprehensive income for 2017 is $-11.2 million
b. The Comprehensive income for 2017 is $1,293.8 million
c. The Accumulated other comprehensive income at December 31, 2017 is $45.2 million
Explanation:
a. According to the given data the company incurred a loss of $11.2 million as an unrealized income from available-for-sale debt securities. It is the actual loss.
Therefore, other comprehensive income is (-$11.2) million.
b. In order to calculate the Comprehensive income for 2017 we would have to use the following formula:
Comprehensive income=Net income−Unrealised holding loss
=$1,305 million−$11.2million
=$1,293.8 million
Therefore, comprehensive income for 2017 is $1,293.8 million
c. In ordert to Calculate the accumulated other comprehensive income we would have to use the following formula:
Accumulated comprehensive income = Existing income−Unrealised holding loss
=$56.4million−$11.2million
=$45.2million
The Accumulated other comprehensive income at December 31, 2017 is $45.2 million
In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:______ (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. units in beginning inventory
b. units completed and transferred to finished goods
c. units in ending work in process inventory
d. units sold
Answer:
Option B. Units completed and transferred to finished goods
&
Option C. Units in ending work in process inventory
Explanation:
The reason is that the Equivalent units of Production that include number of units that would have been completed if all the efforts required were applied to the product completion which are the products started and finished during the period. The definition clearly states that the units considered would be the one that are shifted to finished goods from work in progress state in the current year or the one which is at work in progress state.
In the nutshell, the only units that would be considered in the assignment of the cost in the Step 4 will be either Work in Progress (Option C) or the Finished Goods that is shifted to Work in Progress (Option B).