On August 1, 2018, Towson Corp., declared a 10% stock dividend on its common stock when the market value of the common stock was $17 per share. The balance in the common stock account, before the stock dividend was declared, was $800,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018?

Answers

Answer 1

The dollar amount credited to common stock is $40,000

The dollar amount credited to additional paid in capital - common stock  is $36,000

Solution:

Before stock dividend is declared, there is 80,000 stocks outstanding ( that is, Common stock account balance/par value per stock = 800,000/10)

=> Stock to be distributed as dividend = 80,000 * 5% = 4,000 stocks

As the stock dividend is 5%, this is a small stock dividend => stock dividend is to be recorded at market value.

We have the entries:

Dr        Retained Earnings                                         76,000

Cr        Common stock dividend distributed            40,000

Cr        Additional paid-in capital - common stock  36,000

The dollar amount credited to common stock is $40,000

The dollar amount credited to additional paid in capital - common stock  is $36,000              


Related Questions

Gregory Trout has just received a memo explaining that because of his department's success with the newly developed Trout, Inc., that his request for three new employees has been approved. Gregory now faces the challenge of working with the areas of human resource management in recruiting, selecting, training and maintaining effective employees.

In recruiting and selecting employees for the new positions, Gregory will apply which human resourcemanagement goal?

a.Implementing strategies
b.Managing talent
c.Maintaining an effective workforce
d.Finding the right people
e.Controlling strategies

Answers

Answer:

Right choice: d.

Explanation:

As the George's area of expertise had effectively fulfilled the requirements of the new evolved Trout , Inc. IT may happen that work will be expanded. This will require Goerge to build the workforce those are having ranges of abilities that coordinates the Trout, Inc. needs. Hence, while enlisting and selecting for the new position Georgy will apply HRM objective of finding the correct arrangement of individuals for the necessary undertaking.  

In order to encourage employee ownership of the company’s $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 15% discount. During March, employees purchased 50,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. Required: Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan.

Answers

Answer:

The appropriate journal entry to record the March purchases of shares under the employee share purchase plan are as follows:

Debit: Cash ($12 × 85%) × $50,000 = $510,000

Debit: Compensation Expense ($12 × 8%) × $50,000 = $90,000

Credit: Common Stock = $50,000

Paid in Capital – Excess of Par ($50,000 × $11) = $550,000

Naomi would like to reorder the worksheets in a workbook. What is the easiest method of doing this?

Answers

Answer and Explanation:

In Microsoft Office Excel, changing the order of the worksheets in a workbook only takes to left-click on the page the user wants to move, hold the left click and drag it to the position of the workbook desired. The user can also right-click on the worksheet and select "Move or copy" from the window dialog displayed then select where the worksheet should be placed.

Answer:

A) drag and drop

Explanation:

To rearrange the order of the sheets in a workbook, simply click on the workbook, hold, and drag it to its desired location.

During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following:Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight line)Machine A $21,000 $3,000 8 years $15,750 (7 years)Machine B 50,000 4,000 10 years 36,800 (8years)MachineC 85,000 5,000 15 years 64,000 (12 years)The machines were disposed of during the current year in the following ways:a. Machine A: Sold on January 1 for $5,000 cash.b. Machine B: Sold on December 31 for $10,500; received cash, $2,500, and an $8,000 interest-bearing (12 percent) note receivable due at the end of 12 months.c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost.Prepare journal entries for the above transactions.

Answers

Answer:

See attached picture for detailed answer.

Explanation:

See attached picture.

Journal Entries for recording the Merkley Company's transactions are as follows:

January 1:

Debit Sales/Disposal of Assets $5,250

Debit Accumulated Depreciation $15,750

Credit Equipment (Machine A) $21,000

To transfer the assets and accumulated depreciation to Sales/Disposal Account.

Debit Cash $5,000

Credit Sales/Disposal of Assets $5,000

To record the cash receipts from the disposal.

December 31:

Debit Sales/Disposal of Assets $13,200

Debit Accumulated Depreciation $36,800

Credit Equipment (Machine B) $50,000

To transfer the assets and accumulated depreciation to Sales/Disposal Account.

Debit Cash $2,500

Debit Notes Receivable $8,000

Credit Sales/Disposal of Assets $10,500

To record the cash receipts and notes receivable from the disposal.

January 1:

Debit Sales/Disposal of Assets $21,000

Debit Accumulated Depreciation $64,000

Credit Equipment (Machine C) $85,000

To transfer the assets and accumulated depreciation to Sales/Disposal Account.

Data Analysis:

Asset           Original Cost      Residual Value    Estimated Life  Accumulated                              

                                                                                                       Depreciation

                                                                                                       (straight line)

Machine A      $21,000                 $3,000             8 years            $15,750 (7 years)

Machine B       50,000                   4,000             10 years            36,800 (8 years)

Machine C      85,000                   5,000             15 years            64,000 (12 years)

Machine A on January 1:

Sales of Assets = $5,000 (cash)

Book value = $5,250 ($21,000 - $15,750)

Loss on sale = $250 ($5,250 - $5,000)

Sales/Disposal of Assets $5,250 Accumulated Depreciation $15,750 Equipment (Machine A) $21,000

Cash $5,000 Sales/Disposal of Assets $5,000

Machine B on December 31:

Sales of Assets = $10,500 (Cash $2,500 Notes Receivable $8,000)

Book value = $13,200 ($50,000 - $36,800)

Loss on sale = $2,700 ($13,200 - $10,500)

Sales/Disposal of Assets $13,200 Accumulated Depreciation $36,800 Equipment (Machine A) $50,000

Cash $2,500 Notes Receivable $8,000 Sales/Disposal of Assets $10,500

Machine C on January 1:

Sales of Assets = $0

Book value = $21,000 ($85,000 - $64,000)

Loss on sale = $21,000 ($21,000 - $0)

Sales/Disposal of Assets $21,000 Accumulated Depreciation $64,000 Equipment (Machine A) $85,000

Learn more: https://brainly.com/question/22054937

Assume Oliver wants to earn a return of 10.50% and is offered the opportunity to purchase a $1,000 par value bond that pays a 8.75% coupon rate (distributed semiannually) with three years remaining to maturity. The following formula can be used to compute the bond’s intrinsic value:

Intrinsic ValueIntrinsic Value = A/(1+C)^1+A/(1+C)^2+A/(1+C)^3+A/(1+C)^4+A/(1+C)^5+A/(1+C)^6+B/(1+C)^6

Based on this equation and the data, it is _______ (unreasonable/reasonable) to expect that Oliver’s potential bond investment is currently exhibiting an intrinsic value less than $1,000.
Now, consider the situation in which Oliver wants to earn a return of 11.75%, but the bond being considered for purchase offers a coupon rate of 8.75%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the bond’s intrinsic value to the nearest whole dollar, then its intrinsic value of _______ (rounded to the nearest whole dollar) is _______ (equal to/greater than/less than) its par value, so that the bond is ______ (trading at premium/par/discount).

Answers

Answer and Explanation:

1.

A is semi annual coupon=43.75

B is par or face value=1000

C is semi annual required return=5.25%

2.

Reasonable because coupon rate is less than ytm

3.

=(8.75%*1000)/11.75%*(1-1/(1+11.75%/2)^6)+1000/(1+11.75%/2)^6=925.95

4.

Less than

5.

Discount

For variable A

coupon rate = 8.75%

semiannually = [tex]\frac{8.75}{2}[/tex] = 4.375%

Semiannual coupon rate = 4.375% * 1000

= $43.75

For variable B

Bond par value = 1000

For variable C

Coupon rate = 10.5% annually

Semiannually = [tex]\frac{10.5}{2} =5.25[/tex]%

She wants a rate of 11.75% annually

Semiannually = [tex]\frac{11.75}{2} = 5.875%[/tex]

The time to maturity = 3 years

Semi annual period rate to maturity = 5.25

[tex]\frac{43.75}{1.05875} +\frac{43.75}{1.05875^2} +\frac{43.75}{1.05875^3} +\frac{43.75}{1.05875^4} +\frac{43.75}{1.05875^5} +\frac{43.75}{1.05875^6} +\frac{1000}{1.05875^6}[/tex]

= 41.32+39.029+36.8634.82+32.88+31.07+709.9

= 925.948

From the data and the calculation above we can see that the intrinsic value is $925.9 which is less than the par value of $1000.

This is reasonable given that the coupon rate is lower. Rounding up the intrinsic value we see that it is lower than the par value. Therefore this is a discount.

Read more on par value here https://brainly.com/question/25562729

Consider a $2,700 deposit earning 6 percent interest per year for 9 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?

Answers

Answer:

Total interest earned on the original deposit=$403.593

Explanation:

Total Interest earned after 6 years using compound Interest:

[tex]FV=PV(1+i)^n[/tex]

Where:

PV is the deposit amount

i is the interest Rate

[tex]FV=\$2,700(1+0.06)^9[/tex]

FV=$4561.593

Total Interest earned after 6 years=FV-PV

Total Interest earned after 6 years=$4561.593-$2,700

Total Interest earned after 6 years=$1861.593

Total Interest earned after 6 years using single Interest:

Total Interest=$2,700*0.06*9

Total Interest =$1458

Total interest earned on the original deposit=Total Interest earned after 6 years-Total Interest

Total interest earned on the original deposit=$1861.593-$1458

Total interest earned on the original deposit=$403.593

Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage (i.e., 0.234 should be entered as "23") and other answers to the nearest whole number.)

Answers

Answer:

1. New CM RATIO =  0.4

2. BEP (unit sales) =  21,000 units

   BEP (in dollars) =  $630,000

Explanation:

The original data table is attached.

1. CM Ratio:

The contribution margin is what is left after all variable expenses is subtracted from sales.

The CM Ratio is that amount divided by sales. So we can say:

CM Ratio = (Sales - Var Expenses)/Sales

From the table, we see sales as 585,000 and variable expenses as 409,500

This is original data, but we are given that $3 variable expense per unit is LESS. So, we take that into account and find new variable expense.

Since 19,500 units accounts to variable expense of 409,500:

Var Exp Per Unit = 409,500/19,500 = 21

Now, $3 less per unit, so Var Exp Per Unit (NEW) = 21 - 3 = 18

So, total Var Exp (NEW) = 19,500 units * 18 per unit = 351,00

New CM RATIO = (585000 - 351000)/585000 = 0.4

2. BEP (units) and BEP (dollars)

The Break-Even Point has formula:

BEP (units) = Total fixed cost/ CM Per Unit

Fixed Cost previously was 180,000. Now, 72,000 increased because of automation. Hence,

Fixed Cost (NEW) = 180000 + 72000 = 252,000

Also:

CM Per Unit is Sale Price Per Unit - Var Cost Per Unit

We know Sale Price is $30 and NEW VAR COST PER UNIT is 18

So, CM Per Unit = 30 - 18 = 12

BEP (units) = 252,000/12 = 21,000 units

BEP (in dollars) = Total Fixed Cost/CM Ratio = 252000/0.4 = $630,000

Elaine is a secretary for a business. One day a customer comes in to file a new contract while Elaine is seated at her boss’s desk. The customer assumes Elaine is a person of authority, and Elaine is knowledgeable enough to help the customer file the contract.
Which response aligns best with this situation?

a) Enforceable via factor agent
b) Enforceable or unenforceable - no agency
c) Enforceable via employee agent
d) Enforceable or unenforceable w/ agency

Answers

Answer:

The answer is c:

Enforceable via employee agent

Explanation:

The definition of agency law deals with agent-principal relationships; that is a relationship where one party has the legal authority to act in place of another. Relationships that are commonly associated with agency law include employer-employee, administrator-decedent or executor, and guardian-ward.

Agreements that result in the formation of agency-type relationships can be implied or express, and both the principal and the agent can be an entity (such as partnership or corporation) or individual.

Here in the given situation, since, Elaine is an employee of the business and knowledgeable enough to deal with the contract filing, it is implied that she is acting as an employee agent, that she can help the customer in filing the contract.

Final answer:

The contract is enforceable via Elaine as an employee agent, since she acted within the scope of her employment and the customer reasonably assumed she had the authority to file the contract on behalf of the company.

Explanation:

Considering the situation where Elaine, a secretary, is assumed to be a person of authority by a customer and helps the customer file a contract, the response that aligns best with this situation is enforceable via employee agent. As an employee of the company who is knowledgeable and has acted within the scope of her employment by helping a customer file a contract, it is implied that Elaine has the authority to perform such tasks. In legal terms, this concept is known as the 'apparent authority' or 'ostensible authority' where the actions of the employee bind the employer because the customer reasonably believed Elaine had the authority to act on behalf of the company.

In its income statement for the year ended December 31, 2022, Blossom Company reported the following condensed data.

Salaries and wages expenses $567,300
Loss on disposal of plant assets $101,870
Cost of goods sold 1,204,140
Sales revenue 2,696,200
Interest expense 86,620
Income tax expense 30,500
Interest revenue 79,300
Sales discounts 195,200
Depreciation expense 378,200
Utilities expense 134,200

Prepare a multiple-step income statement. (List other revenues before other expenses.)

Answers

Answer:

Explanation:

Sales revenue                                                                               = 2696200

less: sales discount                                                                      = (195200)

                Net sales                                                                        2501,000

Less: Cost of goods sold                                                             = (1204,140)

                  Gross profit                                                                   1296860

Less: Operating expense                                                          

             salaries & wages expense   567300

             Utilities expense                   134200

             Depreciation expense          378200

                                                                                                       =(1079700)

           Profit before interest and taxes                                          217160

Less: Interest expense                                                                = (86620)

                                                                                                       130540

Less: tax expense                                                                        =(30500)

          Profit after interest and taxes                                            100040

jj

Final answer:

To prepare a multiple-step income statement, categorize revenue and expenses and calculate the gross profit, operating income, and net income.

Explanation:

To prepare a multiple-step income statement for Blossom Company, we need to categorize the revenue and expense items into different sections. First, we calculate the gross profit by subtracting the cost of goods sold from the sales revenue. Then, we subtract the operating expenses such as salaries and wages expenses, depreciation expense, and utilities expense from the gross profit. Next, we add the interest revenue and subtract the interest expense to calculate the operating income. Finally, we subtract the income tax expense and any other non-operating expenses, such as the loss on disposal of plant assets, to arrive at the net income.

Learn more about Multiple-step income statement here:

https://brainly.com/question/33969244

#SPJ3

Requirement 4. Zeke​'s top management is deciding whether to embark on a $ 190 comma 000 advertising campaign. The marketing firm has projected annual sales volume to increase by 18​% as a result of this campaign. Assuming that the projections are​ correct, what effect would this advertising campaign have on the​ company's annual operating​ income?

Answers

Answer: It will increase the company's annual operating income by 18%.

Explanation: Operating income is an accounting and finance term which is known as the total amount generated by a business Organisation after the total costs that are associated with the operations and the tax have been deducted from the total revenue generated during the period under review.

AN OPERATING INCOME CAN BE CALCULATED YEARLY OR ANNUALLY (ANNUAL OPERATING INCOME).

The higher the operating income the higher the profit margin earned by the business Organisation.

Final answer:

An advertising campaign increasing sales by 18% would boost the company's operating income to $16,400 from $15,000.

Explanation:

To determine the effect of the advertising campaign on the company's annual operating income, we need to consider the increase in sales volume and its impact on revenue, as well as any associated costs.

First, we calculate the increase in revenue resulting from the increase in sales volume:

Increase in revenue=Initial sales × Percentage increase

Then, we calculate the impact of the advertising campaign on the operating income:

Impact on operating income =Increase in revenue −Advertising campaign cost

Impact on operating income=Increase in revenue−Advertising campaign cost

Profit = Revenue - Costs

Given: Existing Profit = $15,000, Increase in Sales = 18%

New Profit after Advertising = Existing Profit + (18% * Existing Profit) - $190,000

Therefore, the company's annual operating income would be $16,400.

Olivia deposited $800 at her local credit union in a savings account at the rate of 6.2% paid as simple interest. She will earn interest once a year for the next 7 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Olivia in 7 years?

Answers

Answer:

$1,147.20.

Explanation:

The total amount accrued for principal plus interest in the calculation simple interest

= principal * (1+ rate * number of years)

= $800 *(1+ 6.2% * 7)

= $1,147.20.

Retained Earnings at the beginning and ending of the accounting period was $850 and $1,800, respectively. If revenues were $3,300 and dividends paid to stockholders were $750, expenses for the period must have been:

A. $1,650.

B. $1,000.

C. $ 650.

D. $1,450.

Answers

Answer:

$1,600 (Not given in the options)

Explanation:

Retained earnings is the accumulated balance of an entity's net income over the years. Change between the opening retained earnings and the closing retained earnings of an entity is due to the net income/loss for the period and amount of dividend declared and paid during the period.

Opening retained earnings + net income - dividend = closing retained earnings

850 + net income - 750 = 1800 (all amounts are in $)

net income = 1800 + 750 - 850

= $1700

Net income is the difference between revenue and expenses.

Hence the expenses for the period

= $3,300 - $1,700

= $1,600

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $303,500 after deducting Robert's $91,050 salary. In addition to his compensation, ABC pays Robert dividends of $212,450. a. What is Robert's qualified business income? $303,500 (This answer is correct) b. Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050? $________

Answers

Answer: $303,500

No

Explanation: Qualified business income QBI allows sole shareholders of eligible businesses (S corporations, sole proprietorship) such as Robert to lessen their tax burden by up to 20 percent. In this case, 20% of $303,500 can be deducted.

QBI will not change as reasonable compensation is not actual compensation, so this does not apply to QBI.

However, If his salary increases to $181,050, this would make Robert ineligible to qualify for the deduction as his income is more than the $157,500 threshold that makes a single taxpayer eligible for QBI.

This amount is $315,000 for a married couple filing a joint return.

81. In a lottery, there are 250 prizes of $5, 50 prizes of $25, and ten prizes of $100. Assuming that 10,000 tickets are to be issued and sold, what is a fair price to charge to break even

Answers

Answer:

the price of the ticket should be $0.35/ticket

Explanation:

since each ticket in a lottery are equally likely to be chosen, we define the random variable P= gains from the lottery .Then the expected gain is :

E(P) = probability of getting the $5 prize * $5/ticket +  probability of getting the $25 prize * $25/ticket + probability of getting the $100 prize * $100/ticket = 250/10000 * $5/ticket + 50/10000 * $25/ticket + 10/10000 * $100/ticket = $0.35/ticket

then if all lottery tickets have the same prize ( the lottery tickets are not segmented according to the prizes, where more expensive ticket is associated with the highest prize), then in order to break even the cost of the ticket should be the same that the revenue we get from it , thus

Cost of the ticket = revenue of the ticket = $0.35/ticket

The fair price to charge to break even is 0.35.

The calculation is as follows:

5           250 ÷ 10,000 = 0.0125         0.125

25           50 ÷ 10,000 = 0.005           0.125

100           10 ÷ 10,000 = 0.001            0.1

Price                                                    0.35

Therefore we can conclude that The fair price to charge to break even is 0.35.

Learn more: brainly.com/question/6201432

If a company is considering the purchase of a parcel of land that was acquired by the seller for $94,000 is offered for sale at $168,000, is assessed for tax purposes at $104,000, is considered by the purchaser as easily being worth $158,000, and is purchased for $155,000, the land should be recorded in the purchaser's books at:

Answers

Complete Question:

If a company is considering the purchase of a parcel of land that was acquired by the seller for $94,000, is offered for sale at $168,000, is assessed for tax purposes at $104,000, is recognized by the purchaser as easily being worth $158,000, and is purchased for $155,000, the land should be recorded in the purchaser's books at:

Multiple Choice

$155,000.

$104,000.

$158,000.

$156,500.

$168,000.

Answer:

Since the parcel of land is purchased by the company for $155,000, hence the land should be recorded in the purchaser's books at $155,000.

Explanation:

In case of a fixed asset, a debit of the property account, and a credit to cash or payable funds, or a note payable, based on whether it is a cash transaction, debt acquisition or default, are known as a balance sheet asset.

A provision on the register of deeds and other land rights. Also the preference between parties seeking rights in the same property is decided by a recording statute. See the state of the team, state of a note and status of a non-alert (3 key categories of recordings).

West Corp. issued 20-year bonds two years ago at a coupon rate of 8.6 percent. The bonds make semiannual payments. If these bonds currently sell for 107 percent of par value, what is the YTM

Answers

23.6

Explanation:

it become right answer

You have just leased a car that has monthly payments of $385 for the next 5 years with the first payment due today. If the APR is 7.32 percent compounded monthly, what is the value of the payments today?

Answers

Answer:

Total Value                      =5563.131709

Explanation:

using the annuity formula to find out the present value of lease rentals

p=R*(1-(1+i)^-n)/i

Total rental monthly =5*60 = 60

I=7.32% monthly

R=385$ monthly

Since we have:

Value of the first is same i.e $385

Value of remaining 59 payments as follows

P=385*(1-(1+7.32%)^-59)/7.32%

P=385*(1-0.015482491 )/7.32%

P=385* 0.984517509 /7.32%

P=385*13.44969275

P=5178.131709

Value of 59 rental          = 5178.131709

Add: Value of 1st rental  = 385

Total Value                      =5563.131709

Candice is a jewelry shop owner, specializing in beaded necklaces. For each of the following inputs, classify each item as a variable input or a fixed input in the long run.

i. Shipping
ii. Chairs
iii. Upper Managment salary
iv. Beads
v. Hourly Labour
vi. Computers
vii. 2 years Lease on office and rental space

Answers

Final answer:

This evaluation categorizes shipping, beads, and hourly labor as variable inputs, while chairs, upper management salary, computers, and 2 year lease on office and rental space are classified as fixed inputs in a jewelry shop's production.

Explanation:

In the context of business and economics, variable inputs are those that can be adjusted or changed based on the production needs, while fixed inputs are those that remain constant regardless of the production level. In the long run, all factors of production are variable. However, for the exercise, we consider a certain level of fixedness.

Shipping - Variable Input (as it changes with the number of goods sold)Chairs - Fixed Input (since the number of chairs would likely remain constant regardless of production) Upper Management salary - Fixed Input (Salaries for permanent staff are usually considered fixed unless they work overtime or their salary is performance-based)Beads - Variable Input (as the quantity needed would vary with the number of necklaces being made)Hourly Labour - Variable Input (as it alters based on the hours of work needed)Computers - Fixed Input (as they are a one-time purchase and would not change with production)2 years Lease on office and rental space - Fixed Input (since it's a constant cost over its term, irrespective of production)

Learn more about Fixed and Variable Inputs here:

https://brainly.com/question/32601953

#SPJ12

A restaurant is considering adding fresh brook trout to itsmenu. Customers would have the choice of catching theirown trout from a simulated mountain stream or simply ask-ing the waiter to net the trout for them. Operating thestream would require $11,925 in fixed costs per year.Variable costs are estimated to be $6.80 per trout. The firmwants to break even if 900 trout dinners are sold per year.

What should be the price of the new item?

Answers

Answer:

Selling price = $20.05

Explanation:

The break even point is the level of activity where the total cost of is exactly equal to the total revenue. At this point, the business makes no profit and no loss, because the total contribution is also equal to the total fixed costs.

Contribution is the excess of sales revenue over variable cost

Total contribution = (S.p - VC per unit) × unit sold

So we can determine the selling price per unit by equating the total contribution to the the total fixed cost as follows:

Step 1

Determine the total contribution

= ( S.P - 6.80) × 900

Step 2

Equate the total contribution to the total fixed cost and solve for S.P

(S.P - 6.80) × 900 = 11,925.    Lets substitute S.P with x

(X-6.80) ×  900 = 11,925

900X -6,120 = 11,925

900X =  11,925 + 6,120

900X = 18045

X = 18,045/900

X = $20.05

Selling price = $20.05

Bailey has $8,000 to invest. She has a 24% marginal tax rate and is planning to reinvest her dividends and leave the investment in place for three years. If she can invest the money in taxable securities that earn qualified dividends with a 6% rate of return before tax, how much will she have at the end of the third year?

Answers

Final answer:

Considering her 24% marginal tax rate, Bailey's effective return rate will be 4.56%. Using the formula for compound interest, she will have approximately $9328.68 at the end of three years if she starts with a capital of $8000.

Explanation:

To start, we need to calculate the after-tax rate of return. Bailey's investments earn a 6% return but since they are taxable, the effective rate is reduced by her marginal tax rate of 24%. The after-tax rate of return is 6% * (1-0.24) = 4.56%.

Then, we calculate the total amount Bailey will have at the end of three years given her initial capital of $8000. This is calculated using the formula for compound interest which is A = P * (1 + r)^n where A is the amount of money accumulated after n years, including interest, P is the principal amount ($8000 in this case), r is the annual interest rate in decimal form (4.56% or 0.0456), and n is the number of years the money is invested or borrowed for (3 in this case).

So, by substituting the given values into the equation, we get A = $8000 * (1 + 0.0456)^3. Calculating this, Bailey will have approximately $9328.68 at the end of three years.

Learn more about Compound Interest here:

https://brainly.com/question/34614903

#SPJ3

Eckelberger Products Inc. makes high-speed recorders with high-speed scanning. The small company has been growing at an average rate of 70% per year for the past 4 years. The CEO asked you to convert the past growth rate into a daily rate for its annual report. If the past growth rate was an effective rate, what was the effective growth rate daily

Answers

Answer:

The effective growth rate daily is 0.1455%

Explanation:

The effective growth rate daily can be computed using the below daily growth rate formula:

effective daily rate=(1+annual rate)^1/365-1

annual growth rate as given in the question is 70%

effective daily growth rate=(1+0.70)^(1/365)-1

effective daily growth rate =1.001454833 -1

effective daily growth rate=0.001455

effective daily growth rate=0.145483327  %

effective daily growth rate =0.1455%  approximately

The fact that the business is growing at this rate on daily basis is good indicator of business success which must be leveraged upon in the future in order to take the business even to greater heights.

However,the validity of the annual rate of 70% is also very important,whatever parameters used in arriving at 70% needs to be rechecked in order to be on the safe side.

Final answer:

To convert the past growth rate into a daily rate, we divide the average annual growth rate by the number of days in a year. The effective daily growth rate is approximately 0.51%.

Explanation:

To convert the past growth rate into a daily rate, we need to divide the average annual growth rate by the number of days in a year.

First, we need to calculate the effective annual growth rate. Since the company has been growing at an average rate of 70% per year for the past 4 years, we can use the compound interest formula:

Effective rate = (1 + Growth rate) ^ Number of years - 1

Using the formula, we can find the effective annual growth rate:

Effective rate = (1 + 0.70) ^ 4 - 1 = 2.8704 - 1 = 1.8704

Next, we divide the effective annual growth rate by the number of days in a year (365) to find the effective daily growth rate:

Effective daily growth rate = 1.8704 / 365 = 0.0051166 (approximately 0.51%)

Learn more about Growth rate here:

https://brainly.com/question/32268079

#SPJ3

The stockholders’ equity section of Creighton Company’s balance sheet is shown as follows. CREIGHTON COMPANY As of December 31, 2018 Stockholders’ equity Preferred stock, $10 stated value, 7% cumulative, 300 shares authorized, 50 issued and outstanding $ 500 Common stock, $10 par value, 250 shares authorized, 100 issued and outstanding 1,000 Common stock, class B, $20 par value, 400 shares authorized, 150 issued and outstanding 3,000 Common stock, no par, 150 shares authorized, 100 issued and outstanding 2,200 Paid-in capital in excess of stated value—preferred 600 Paid-in capital in excess of par value—common 1,200 Paid-in capital in excess of par value—class B common 750 Retained earnings 7,000 Total stockholders’ equity $ 16,250 Required Assuming the preferred stock was originally issued for cash, determine the amount of cash that was collected when the stock was issued. Based on the class B common stock alone, determine the amount of the company’s legal capital. Based on the class B common stock alone, determine the minimum amount of assets that must be retained in the company as protection for creditors. Determine the number of shares of class B common stock that are available to sell as of December 31, 2018. Assuming Creighton purchases treasury stock consisting of 25 shares of its no par common stock on January 1, 2019, determine the amount of the no-par common stock that would be outstanding immediately after the purchase. Based on the stockholders’ equity section shown above, can you determine the market value of the preferred stock? rev: 03_06_2018_QC_CS-120790

Answers

Answer:

a. $1,100

b. $3,000

c. $3,750

d. 250 shares

e. 75 shares

f. Cannot be found because the expected rate of return is not given

Explanation:

a. Amount of cash collected when preferred stock was issued

Stated Value = $500

Paid in Capital in excess of Stated Value = $600

Cash Collected = $(500 + 600) = $1,100

b. Amount of company's legal capital based on class B common stock alone

Issued shares = 150

Par value = $20

Company's legal capital amount = 150 * 20 = $3,000

c. Minimum amount of assets that must be retained in the company as protection for creditors based on the class B common stock alone

Stated value of common stock  = $3,000

Paid in capital in excess of par value = $750

Minimum retain amount = $(3000 + 750) = $3,750

d. Number of shares of class B common stock that are available to sell as of December 31, 2018

Authorized shares = 400

Issued and outstanding = 150

Shares available to sell = 400 - 150 = 250 shares

e. Amount of the no-par common stock that would be outstanding immediately after the purchase of treasury stock as assumed

Shares before purchase = 100

Shares purchased = 25

Outstanding no-par common stock  = 100 - 25 = 75 shares

f. Market value of preferred stock

The expected rate of return is required to calculate the market value of preferred stock, but since this is not given in the question, the market value of preferred stock cannot be calculated.

Assuming the required rate of return is 12%

And the dividend rate of preferred stock is 7%

Stated Value or par value = $10

Dividend amount = $10 * 7% = $0.7

Hence the market value of preferred stock  = Dividend / Required Rate of Return

= $0.7/0.12 = $5.83

a. Calculation of Preferred stock

Particulars                                                             Amount

Issued & outstanding (50*$10)                               $500

Add: Paid-in capital in excess                                $600

Total cash collected when stock is issued          $1,100

b. The legal capital means the total stated capital for that class of shares.

The Issued & outstanding amount = 150*$20 par value

The Issued & outstanding amount = $3,000

c. The minimum amount of assets to be retained should be based on Class B common stock alone, that is, capital which is $3,000.

d. Number of shares that are available for sell

Particulars                                                                           Unit

Total number of shares authorized to be issued              400

Less: Total no.of issued & outstanding                              150

Number of shares that are available for sell                   250

e. The number of no-par shares outstanding immediately after the re-purchase on Jan 1, 2019 is:

Particulars                                                              Unit

Number.of no-par common stock                         100

Less: No.of no-par shares purchased for             25

treasury & issued but no more outstanding

No of no-par shares outst, after re-purchase      75

f. Calculation of the Market value of Preferred stock

Particulars                                                                 Amount

Issued & outstanding (50*$10)                                500

Add: Paid-in capital in excess                                     600

Total cash collected when the stock was issued     $1,100

Number of shares issued & outstanding shares = 50

Market value at the time of issue = Total cash collected / Number of shares)

Market value at the time of issue = $1100/50

Market value at the time of issue = $22

See similar solution here

brainly.com/question/22781657

On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Answers

Answer:

The question says ; Determine the total interest expense for Year 1, using the interest method.

Explanation:

Total interest expense = Issue price x Market rate x TimeIssue price = $37,282,062market rate = 8%Time = December 31 - June 30 which is approximately 6months

Plugging the values in the equation ;

= 37282062 x 8% x 6/12 = $1491282.48

Total interest expense = $1491282.48

Massa Machine Tool expects total sales of $60,000. The price per unit is $10. The firm estimates an ordering cost of $25 per order, with an inventory cost of $0.70 per unit. What is the optimum order size?

Answers

Answer:

The optimal order size is 654.

Explanation:

As we know that: EOQ = Squareroot (2DS/H)

 where :

S= ordering cost = $25 per order

H = Holding cost per unit = 0.70 per unit

D= Annual demand,sales = 60000/10 = 6000 units

        Solution:

                        =  Squareroot ( 2 * 6000 * 25 ) / 0.70

                        =  Squareroot (300000/0.70)

                         = Squareroot (428571)

              EOQ = 654

Final answer:

The optimum order size is 6000 units.

Explanation:

To determine the optimum order size, we need to consider the total cost and the quantity of units. The formula for total cost is (ordering cost + inventory cost), and the formula for quantity of units is (total sales / price per unit).

In this case, the ordering cost is given as $25 per order, and the inventory cost is $0.70 per unit. The total sales are $60,000, and the price per unit is $10.

Using the formulas, we can calculate the optimum order size:

Calculate the quantity of units: 60000 / 10 = 6000 unitsCalculate the ordering cost: 25Calculate the inventory cost: 0.7Calculate the total cost: (25 + 0.7) * 6000 = 15300

Therefore, the optimum order size is 6000 units.

Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit, how many units of X must he give up in order to satisfy his budget constraint

Answers

Answer:

1 unit of X must be sacrifised to gain a unit of Y, with satisfying Budget Constraint .

Explanation:

Budget Line shows the product combinations that a consumer can buy with given prices & money income (spending all) . Equation : P1X1 + P2X2 = M

Price ratio slope of the budget line i.e = P1/P2 : shows the amount of a good needed to be sacrifised to gain a unit of the other good , given prices & income.

So, Price Ratio : PX / PY = 2 / 2 = 1 in this case; implies 1 unit of Good X is needed to be sacrifised to gain a unit of good Y with given prices & income.

Final answer:

Mitchell must give up 2 units of X to consume an additional unit of Y, due to the equal prices of goods X and Y ($2 each) and his Marginal Rate of Substitution (MRS) being 2 at bundle J. This satisfies his budget constraint without altering his total spending.

Explanation:

In the context of consumer choice theory, when a consumer like Mitchell faces a budget constraint, he must decide how to allocate his income across different goods to maximize his utility. Given that Mitchell's money income is $150, the price of good X is $2, and the price of good Y is also $2, Mitchell initially chooses to buy 50 units of X and 25 units of Y, forming bundle J.

At bundle J, Mitchell's Marginal Rate of Substitution (MRS) is given as 2. This means that Mitchell is willing to give up 2 units of X for every additional unit of Y he consumes in order to maintain the same level of utility. To satisfy the budget constraint, the consumer must adjust consumption when the price or budget changes. If Mitchell wants to increase his consumption of Y by 1 unit without changing his spending, he must calculate how many units of X to forgo.

Given that the price of X and Y are the same, which is $2, and the MRS is 2, Mitchell must give up 2 units of X to gain 1 additional unit of Y to remain on his budget line. Therefore, the budget constraint and the MRS together determine that Mitchell will consume 2 fewer units of X. This allows Mitchell to reallocate the resources spent on X to purchase an additional unit of Y.

4. Consider the following information for a closed economy. Y = $12 trillion, C = $8 trillion, G = $2 trillion, Spublic = $-0.5 trillion and T = $2 trillion. 1. What is private savings for this economy? 2. What is investment spending for this economy? 3. What are the transfer payments for this economy? 4. Is there a government budget deficit or surplus for this economy? PreviousNext

Answers

Answer:

a. Private savings= $2.5 trillion

b. Investment = $2 trillion

c. Transfer payment = $0.5 trillion

d. The economy has a budget deficit of $0.5 trillion.

Explanation:

Y = $12 trillion

C = $8 trillion

G = $2 trillion

Spublic = $-0.5 trillion

T = $2 trillion

(a) Private Savings =Y + TR -C - T., where Y is GDP, TR is Transfer Payment, C is consumption expenditure and T are taxes. 

Private savings = 12 + 0.5 - 8 -2

Private savings = $2.5 trillion.

(b) Investment= Y - C - G

= 12 - 8 - 2

Investment= $2 trillion.

(c) Solve for Transfer payment(TR) by rearranging public saving: T-G-TR = S(public).

TR = T - G - S(public)

= 2 - 2 - (-.5)

= 0.5 trillion

The transfer payment is 0.5 trillion dollar.

(d) To know whether there's budget surplus or not, we find the budget balance = T - G - TR

= 2 - 2 - 0.5

= -0.5 trillion.

This shows that there's a budget deficit of 0.5 trillion dollar.

It costs Bonita Company $17.9 of variable costs and $8.0 of fixed costs to produce its product that sells for $39. Carla Vista Company, a foreign buyer, offers to purchase 3800 units at $23.1 each. If the special offer is accepted and produced with unused capacity, net income will:__________

Answers

Answer:

Decrease by $10,640

Explanation:

The unused capacity ordinarily will not change the fixed component of cost but will increase the variable cost hence the net income increase or decrease is know as net contribution margin. However, given the fixed cost as a unit cost, it will be affected by the offer of accepted.

Net income is the result of sales less cost where the cost is made of the fixed and variable portions.

Net income increase/(decrease)

= 23.1 (3800) - 3800(17.9 + 8)

=3800( 23.1 - 25.9)

= ($10,640)

Accepting the offer will result in a decrease in net income

 

You hold a diversified portfolio consisting of a $10,000 investment in each of 15 different common stocks (i.e., your total investment is $150,000). The portfolio beta is equal to 1.2 . You have decided to sell one of your stocks which has a beta equal to 1.4 for $10,000. You plan to use the proceeds to purchase another stock which has a beta equal to 1.3 . What will be the beta of the new portfolio? Show your answer to 2 decimal places.

Answers

Answer:

1.19

Explanation:

The beta of a portfolio can be simply determined by a weighted average of each individual investment's beta. Thus, the portfolio beta after selling $10,000 of a stock with beta equal to 1.4 is:

[tex]B_1 = \frac{150,000*1.2-10,000*1.4}{140,000}\\B_1 =1.185714[/tex]

The beta of a new portfolio after purchasing $10,000 worth of a new stock with beta equal to 1.3 is:

[tex]B_2 =\frac{1.185714*140,000+1.3*10,000}{150,000}\\B_2=1.1933[/tex]

The beta of the new portfolio is 1.19.

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on. This creativity technique is called ________.

A) attribute listing

B) mind mapping

C) morphological analysis

D) lateral analysis

E) reverse analysis

Answers

Answer:

The correct answer is letter "C": morphological analysis.

Explanation:

Morphological analysis is a mathematical approach consisting of solving problems using all variables possible which are to be combined and analyzed. When it comes to business, morphological analysis is helpful to outline several possible outcomes given a product so after combining those variables the best result can be selected. Often, more than one result is chosen to increase the diversity of products from where consumers can select.

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on. This creativity technique is called attribute listing.

The creativity technique described in the question is called attribute listing. This technique involves brainstorming by listing all the various attributes of a product and then considering how each attribute can be improved or modified.

For example, in the context of manufacturing screwdrivers, the company could list attributes such as the handle material, screw head types, and additional functionalities like torque power.

By evaluating and changing each attribute, they aim to enhance the overall product.

Depreciation represents The consumption of capital in the production process. A loss of productive capability as a result of the inefficient use of resources. Wasted capital. Gross investment plus net investment.

Answers

Answer:

The consumption of capital in the production process.

Explanation:

Depreciation can be defined as the decrease of the recorded cost of a fixed asset in a systematic way until the value of the asset becomes zero or negligible.

Depreciation is referred to as 'consumption of physical capital'. It is the difference that exists between gross investment and net investment.

Examples of fixed assets include: buildings, furniture, office equipment, machinery. A land is the only oddity. A land cannot be depreciated as the value of land appreciates with time.

Final answer:

Depreciation is the loss of value in capital goods due to wear and tear or obsolescence. It's measured as the cost of production and subtracted from gross investment to determine net investment, impacting the overall capital stock of an economy. Depreciation also represents a significant percentage of Gross Domestic Income.

Explanation:

Depreciation is an important concept in economics and accounting that refers to the wear and tear or obsolescence of capital goods like machinery and buildings during the production process. As capital is utilized, it gradually loses value due to factors such as physical deterioration and technological advancements. This reduction in value is calculated as depreciation and is reported by entities such as the Commerce Department as the "consumption of fixed capital".

The concept of gross and net investment relates directly to depreciation. Gross investment represents the total amount invested in new capital, while net investment is obtained by subtracting depreciation from gross investment. Positive net investment indicates that the capital stock of an economy is growing, while negative net investment signals a decline in the capital stock.

Depreciation is not just a measure of the decline in value; it also represents the cost of production, as it is part of the price for goods and services. Thus, it contributes to the income generated in the production process. In macroeconomic terms, depreciation helps to understand the lifespan of various capital goods, and it accounted for about 13% of Gross Domestic Income (GDI) in 2008.

Other Questions
What can be inferred about Esperanzas personality from the fact that she frequently does this? How is revising different from editing?OA. Revising is done only once during the writing process.OB. Revising is done after publishing the message.O C. Revising focuses on correct grammar.OD. Revising focuses on the clarity of the main idea. An investor sells 100 shares short at $43. The sale requires a margin deposit equal to 60 percent of the proceeds of the sale. If the investor closes the position at $49, what was the percentage earned or lost on the investment? If the position had been closed when the price of the stock was $27, what would have been the percent earned or lost on the position? (ignore any dividends, interest or commissions that would normally apply in a short sale) . The Vmax of a glucose transport into a certain preparation of red blood cells is determined to be 1206nmol glucose/s without ATP present in the buffer. The Vmax of a glucose transport into the same preparation of red blood cells is determined to be 1158nmol/s when ATP is present in the buffer. However, when cells that do not express any glucose transporter are probed for rate of glucose transport, Vmax is infinite. Explain these data. Discuss specific proof of human rights violations commuted during world warII The two pentagons are similar. Find the value of x. Enter your answer in the box. Carbon, nitrogen, oxygen and hydrogen are considered _______ because they are required in relatively large quantities, whereas manganese, zinc, and copper are considered _____ because they are required in very small quantities. Paul is playing a game when his computer shuts down unexpectedly. Paul has noticed recently that his fans are running very loud. When Paul turns his computer back on, it starts to boot and then shuts off again.What is a possible problem with Pauls computer? When switch S is open, the voltmeter across the battery reads 1.52V. When theswitch is closed , the voltmeter reading drops to 1.37V and the ammeter reads 1.5A.Find the internal resistance of the battery. What were Canadian soldiers expecting to find after returning home fromEurope? A gaseous system undergoes a change in temperature and volume. What is the entropy change for a particle in this system if the final number of microstates is 0.599 times that of the initial number of microstates? Illiquid currencies tend to exhibit ________ volatile exchange rate movements, as the equilibrium prices of their currencies adjust to ________ changes in supply and demand conditions. Calculate the diffusion coefficient for magnesium in aluminum at 500oC. Pre-exponential and activation energy values for this system are 1.2 x 10-4m2/s and 144,000 J/mole respectively. R = 8.314 J/mol K There are 5,280 feet in one mile. How many feet are in 6 miles? Choose the answer in which the three atoms and/or ions are listed in order of increasing EXPECTED size (smallest particle listed first) assuming that the simple shell model of the atom is correct. (Neglect quantum, relativistic and other advanced considerations.) a) Cl - < S2- < Ar b) Ar < Cl - < S2- c) Ar < S2- < Cl - d) Cl - < Ar < S2- e) S2- < Cl - < Ar Ivanna is a software saleswoman. Let y represent her total pay (in dollars). Let x represent the number of copies of History is Fun she sells. Suppose that x andy are related by the equation 2400+120x = y.Answer the questions below.Note that a change can be an increase or a decrease.For an increase, use a positive number. For a decrease, use a negative number.What is the change in Ivanna's total pay for each copy of History is Fun she sells?$What is Ivanna's total pay if she doesn't sell any copies of History is Fun? Towson Corp., had 6,000 shares of $100 par, 4% cumulative preferred stock as of January 1, 2018. No additional shares of preferred stock were issued during fiscal years 2018 & 2019. Dividends were paid to common shareholders in 2017 but no shareholders were paid dividends in 2018. A total of $85,000 of dividends was paid in 2019. Use this information to determine the total dollar amount of dividends that was paid to common shareholders during fiscal year 2019. Determine which of the following statements are correct regarding damaged or obsolete goods. (Check all that apply.) Damaged goods are included in inventory at their net realizable value. If damaged goods can be sold at a reduced price, they are included in inventory. A loss in value is reported in the period when goods are damaged or become obsolete. Damaged goods are not included in inventory if they cannot be sold. Net realizable value of damaged goods is determined solely by the sales price of the good. Why were southerners afraid of african americans gaining the right to vote? Identify the sample chosen for the study. The number of hours a group of 12 children in Mrs. Smith's kindergarten class sleep in a day. Answer2 Points The 12 children selected in Mrs. Smith's kindergarten class. All children in Mrs. Smith's kindergarten class. The number of hours children sleep.