Laserscope Inc. is trying to determine the best combination of short-term and long-term debt to employ in financing its assets. Laserscope will have $16 million in current assets and $20 million in fixed assets next year and expects operating income (EBIT) to be $4,1 million. The company's tax rate is 40% and its debt ratio is 50%. The firm's debt will be financed by an conservative policy using $6 million of short-term debt. The short-term interest rate is 7.0% and the long-term interest rate is 10.3%. What is the return on shareholders' equity (ROE) under this policy

Answers

Answer 1

Answer:

Laserscope Inc.

Return on Equity (ROE):

= $1,466,400/$18,000,000 * 100

= 8.15%

Explanation:

a) Laserscope's Return on Equity (ROE) is a financial performance measure, calculated by dividing the net income or Earnings After Tax (EAT) by its total shareholders' equity.  It is usually expressed as a percentage.  So the above calculation is further multiplied by 100.

b) Data and Calculations:

Current assets = $16

Fixed assets = $20

Total assets = $36

Debt ratio = 50%  of $36 million = $18 million

Therefore, Stockholders' equity = 50% (1 - 50%) or $18 million

EBIT = $4.1 million

Short-term debt = $6 million

Long-term debt = $12 million

Interest on short-term debt = $420,000 (7% * $6 million)

Interest on long-term debt = $1,236,000 (10.3% * $12 million)

Total interest expense = $1,656,000

Earnings before interest and taxes = $4,100,000

Interest expense                                   1,656,000

Earnings before taxes                          2,444,000

Company tax (40%)                                (977,600)

Earnings after taxes (EAT)                 $1,466,400

Answer 2

The return on shareholders' equity (ROE) under this policy is 8.15%.

The calculation is as follows;

Total assets is

= $16 million + $20 million

= $36 million

EBIT is $4.1 million

Debt ratio is 50%

The total debt is 50% of $36 billion i.e. $18 million

Less: short term debt $6 million

Long term debt $12 million

Now

EBIT $4.1 million

Less: Interest $1.656 million ((6 × 7%)+(12 × 10.3%))

EBT $2.444 million

Less: taxes $0.9776 million

Net income $1.4664 million

Now

The return on shareholder equity is

= $1.4664 ÷ $18

= 8.15%

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Related Questions

Find the values of y²=144​

Answers

Answer:

y = 12

Explanation:

y^2 = 12^2

y = 12

which is your answer

The entry that includes a debit to Cash and credit to Accounts Receivable at a discounted price is recording the ______. Multiple choice question.

Answers

We are recording a sales credit when the entry a debit to Cash and credit to Accounts Receivable at a discounted price.

What does sales discounts entails?

Normally, the debit of sales discounts account by the amount of the discount are recorded.

For instance, when we debit cash by $99 and debit sales discounts by $1, we will credit the accounts receivable account in the same journal entry.

In conclusion, we are recording a sales credit when the entry a debit to Cash and credit to Accounts Receivable at a discounted price.

Read more about sales discounts

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A chemical engineer working for a large chemical products company was asked to make a recommendation about which of three mutually exclusive revenue alternatives should be selected for improving the marketability of personal care products used for conditioning hair, cleansing skin, removing wrinkles, etc. The alternatives (X, Y, and Z) were ranked in order of increasing initial investment and then compared by incremental rate of return analysis. The rate of return on each increment of investment was less than the company's MARR of 17% per year. The alternative to select is: Group of answer choices

Answers

Answer: a. DN

Explanation:

The Minimum Acceptable Rate of Return (MARR) which is also known as the Hurdle Rate is the rate of return that will be earned by an investment to ensure that it will cover its cost.

This means that below the MARR, the project will bring in less than the costs it incurred. This is therefore not ideal.

The rate of return on each increment was less than the MARR of 17% which means that they are not profitable.

The company should not invest or rather Do Nothing.

Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price $167 Materials and purchased parts $25/unit Direct Labor 2 hrs at $20 per hour Fixed Cost $1,400,000 If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit.

Answers

The manufacturing cost per unit for Tech Engineering is $97 having charged overhead expenses at 80 % of labor cost

What is manufacturing cost?

Manufacturing costs are the costs incurred during the production of a product. These costs include the costs of direct material and direct labor.

Manufacturing cost is computed as:

= Materials and purchased parts cost + Direct labor cost + Overhead expenses

= $25 + $40 + 80% * $40

= $25 + $40 + $32

= $97

Hence, the manufacturing cost per unit for Tech Engineering is $97

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1. Suppose Mary intends to sell two software products X & Y for the next convention & budgets the following . X Y Total Units Sold. 60 40 100 Revenues, $200 $100 per unit $12,000 $ 4,000 $16,000 Variable Costs, $120 $70 per unit 7,200 2,800 10,000 Unit Contribution Margin, $80 $ 30 per unit $ 4,800 $ 1200 $ 6,000 Fixed Costs 4,500 Operating Income $ 1,500 Required: What is the BEP (in units & in Birr)

Answers

The break-even point (in units and dollars) for Mary, who intends to sell two software products X & Y are:

1) Break-even point in units = Fixed costs/Weighted contribution margin per unit

                                                     X               Y

=                                              70 units                750 units

                                     ($4,500/$64)    ($4,500/$6)

2) Break-even point in dollars = Fixed costs/Weighted contribution margin ratio

                                                     X               Y

=                                           $5,625            $22,500

                                     ($4,500/80%)    ($4,500/20%)

What is the break-even point?

The break-even point is the point at which the total revenue equals total costs (including variable and fixed costs).

At the break-even point, both in units and in dollars, the organization records no profit or loss.

For more than one product, the computation of the break-even point is based on the weighted contribution margin.

Data and Calculations:

                                                      X               Y                     Total

Units Sold                                      60           40                       100

Revenues,                                 $200      $100 per unit

Total                                     $12,000       $ 4,000                 $16,000

Variable Costs,                         $120         $70 per unit

Total variable costs                7,200             2,800                10,000

Unit Contribution Margin,         $80          $ 30 per unit

Weighted contribution margin   $64          $6 ($30 x 20%)

Total Contribution Margin $ 4,800          $ 1,200                $ 6,000

Weighted contribution margin  80%         20%                       100%

Fixed Costs                                                                               4,500

Operating Income                                                                  $ 1,500

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Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effect of each of the following transactions on the company's 2019 gross income assuming that the company uses any available options to defer its taxes.

Required:
a. In December 2018, the company received a $1,200 advance payment from a customer for an appliance that Drake special ordered from the manufacturer. The appliance did not arrive from the manufacturer until January 2019, and Drake immediately delivered it to the customer. The sale was reported in 2019 for financial accounting purposes.
b. In October 2019. the company sold a 6-month service contract for $240. The company also sold a 36-month service contract for $1,260 in July 2019.

Answers

Answer:

(a) $1,200

(b) $330

Explanation:

(a)

The advance payment was issued in 2018, however the items throughout 2018 were not shipped. The products were distributed throughout 2019 as well as the transaction for accounting information requirements was announced throughout 2019.

Therefore, in 2019, $1200 would include gross revenue  

(b)

Service contract for 6 months will be:

Drake would include gross income throughout 2019 of [tex]120(40\times \frac{3}{6} )[/tex] ($)and gross income throughout 2020 of $120. In October year 2019, because a corporation offered a 6-month contract, total sales in 2019 represented just a 3-month service agreement.

Service contract for 36 months will be:

Throughout 2019 gross sales, Drake would include [tex]120(= (= 1260\times \frac{6}{36} )[/tex].The residual balance would not have been all conducted until the close including its tax year of collection since the contract became sold through 36 month. The residual amount of [tex]1050 (= 1,260-210)[/tex] is thus used throughout gross sales for 2020.  

Consequently,

⇒  Cumulative gross income used throughout 2019 = total earnings of 6 months service agreement + gross income of 36 months service agreement

⇒  [tex]120 + 210[/tex]

⇒  [tex]330[/tex] ($)

If firms can set appropriate service criteria, train employees to meet and exceed those criteria, and measure service performance, they generally can close the ________ gap. Multiple Choice knowledge standards delivery communication ethical

Answers

The gap which firms can close up when they set appropriate service criteria, train employees to meet and exceed those criteria, and measure service performance is the:

Standards gap

What are Standards Gap?

This refers to the difference between people who have knowledge about something and effective application and people who do not have this.

With this in mind, we can see that standards gap can actually be bridged if firms engage in service criteria and also train the employees that can meet and maintain such criteria.

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Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to the company’s two departments for the month of January: Mixing Bottling Cases of cola in work in process, January 1 10,000 5,000 Cases of cola completed/transferred out during January 65,000 ? Cases of cola in work in process, January 31 4,000 7,000 How many cases of cola were completed and transferred to Finished Goods Inventory during January?

Answers

Answer:

$63,000

Explanation:

The computation of cases of cola were completed and transferred to Finished Goods Inventory during January is shown below:-

Completed and transferred to finished goods inventory is

= Case of cola as on Jan 1 work in process + completed & transferred out - ending work in process as on Jan 31

= $5,000 + $65,000 - $7,000

= $63,000

Hence, the number of cases of cola is $63,000

In its first month of operations, Concord Corporation made three purchases of merchandise in the following sequence: (1) 650 units at $4, (2) 750 units at $6, and (3) 850 units at $7. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter an average unit cost in dollars eTextbook and Media List of Accounts Compute the cost of the ending inventory under the average-cost method, assuming there are 550 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.) The cost of the ending inventory $enter the cost of the ending inventory in dollars

Answers

Answer: Average unit cost=$5.800 per unit

Cost of Ending inventory =$3,190

Explanation:

Average unit cost

First purchase= 650 units x $4=$2,600

Second Purchase=750 units x $6 =$4,500

Third Purchase=    850 units x $7 = $5,950

Total Cost =                                     $13,050

Average unit cost = Total cost/ number of units =13,050/(650+750+850)= 13,050/2250= $5.8 per unit

Cost of Ending inventory = 550 unts at hand x $5.8 =$3,190

(using the average cost method)

the insider quiz Bergman received a box of documents on his doorstep. What is the name of the company where the documents came from

Answers

The name of the company where the documents received by Bergman came from is B. Brown & Williamson.

What was Brown & Williamson?

Brown & Williamson Tobacco Corporation was the third-largest tobacco company in the United States.

Brown & Williamson Tobacco Corporation became infamous as the focus of investigations by Lowell Bergman in 2000 for chemically enhancing the addictiveness of cigarettes.

Answer Options:

A. American Tobacco Company

B. Brown & Williamson Tobacco Company

C. Liggett Group

D. Lorillard Tobacco Company

E. Phillip Morris USA O RJ Reynolds

Thus, the name of the company where the documents received by Bergman came from is B. Brown & Williamson.

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When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:

Answers

When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:

the bigger the plant, the more efficient production became.

What is Economies of Scale?

This refers to the cost advantage which a particular company makes as they produce more goods using fewer input costs as a result of the size of the market.

With this in mind, with the evolution of businesses and the production of larger amounts of product, then it can be said that their use of mass production methods shows that if the production plant is bigger, then the production is more efficient.

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Answer: The bigger the plant, the more efficient production became

Explanation:

When a sale is made on account, what impact does a sales discount have on the amount of cash eventually received? It either increases or decreases the amount of cash received in unpredictable ways. It neither increases nor decreases the amount of cash received. It decreases the amount of cash received. It increases the amount of cash received.

Answers

When a sale is made on account, D. It decreases the amount of cash received.

What is sale?

It should be noted that sale simply means the quantity of goods and services sold at a particular period of time.

In this case, when a sale is made on account, the impact that it will have on the amount of cash eventually received is that it decreases the amount of cash received.

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What are the differences between psychodynamie and psychounalytic
theories of personality?

Answers

Answer:

The words psychodynamic and psychoanalytic are often confused. Remember that Freud's theories were psychoanalytic, whereas the term 'psychodynamic' refers to both his theories and those of his followers. Freud's psychoanalysis is both a theory and therapy.

Milton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,800. Notes Receivable includes the following.

date Maker Face Value Term Maturity Date Interest Rate
21-Apr Coote Inc 6,000 90 Days 20-Jul 8%
25-May Brady Co 7,800 60 Days 24-Jul 10%
30-Jun BMG Co 10,000 6 Months 31-Dec 6%

During July, the following transactions were completed.
July 5 Made sales of $4,500 on Milton Company credit cards.
14 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.
20 Received payment in full from Coote Inc. on the amount due.
24 Received payment in full from Brady Co. on the amount due.

Required:
a. Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable.
b. Show the balance sheet presentation of the receivable accounts at July 31.

Answers

a) Journalizing the July transactions and the July 31 adjusting entry for accrued interest receivable for Milton Company is as follows:

July 5 Debit Credit Card $4,500

Credit Sales Revenue $4,500

Milton Company credit cards.

July 14 Debit Visa Credit Card $582

Credit Visa Credit Card Expense $18

Credit Sales Revenue $600

Visa credit cards with a service charge of 3%.

July 20 Debit Cash $6,120

Credit Notes Receivable (Coote Inc.) $6,000

Credit Interest Revenue $120

July 24 Debit Cash $7,930

Credit Notes Receivable (Brady Co.) $7,800

Credit Interest Revenue $130

Adjusting Journal Entry:

July 31 Debit Interest Receivable $50

Credit Interest Revenue $50

b. The balance sheet presentation of the receivable accounts as of July 31 is as follows:

Milton Company

Balance Sheet as of July 31:

Receivable Accounts:

Credit Cards           $5,082

Notes Receivable $10,000

Interest Receivable     $50

Data and Calculations:

Notes Receivable account balance = $23,800

Detailed as follows:

Date       Maker         Face Value      Term      Maturity Date    Interest Rate

21-Apr    Coote Inc       $6,000      90 Days       20-Jul                   8%

25-May  Brady Co          7,800      60 Days       24-Jul                   10%

30-Jun   BMG Co         10,000       6 Months     31-Dec                   6%

Total                          $23,800

Transactions Analysis:

July 5 Credit Card $4,500 Sales Revenue $4,500

Milton Company credit cards.

July 14 Visa Credit Card $582 Visa Credit Card Expense $18 Sales Revenue $600

Visa credit cards with a service charge of 3%.

July 20 Cash $6,120 Notes Receivable (Coote Inc.) $6,000 Interest Revenue $120

July 24 Cash $7,930 Notes Receivable (Brady Co.) $7,800 Interest Revenue $130

July 31 Interest Receivable $50 Interest Revenue $50

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Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $512,000 or a new model 220 machine costing $408,000 to replace a machine that was purchased 12 years ago for $455,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $408,000 in the new machine, the money could be invested in a project that would return a total of $57,000.

In making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was:_________

a. $455,000
b. $408,000
c. $512,000
d. $485,000

Answers

Answer:

Option d ($485,000) is the correct alternative.

Explanation:

When making the investment decision throughout the 220 model computer, the expense of the opportunity or chance seems to be:

= $485,000

As we know,

Opportunity cost = Return from alternative investment

i.e.,  $485,000

All other available options weren’t applied to the example mentioned. So, the solution above is the right one.

Which of the following methods may be used to report comprehensive income? (Select all that apply.) Check All That Apply In a single, continuous statement of comprehensive income In a single, continuous statement of comprehensive income In the statement of shareholdersâ equity In the statement of shareholdersâ equity In two separate, but consecutive statements, an income statement and a statement of comprehensive income. In two separate, but consecutive statements, an income statement and a statement of comprehensive income. In two separate, but nonconsecutive statements, an income statement and a statement of comprehensive income.

Answers

i suggest reading the question carefully and the reading part

Consider the following national data: tax revenues as a percentage of GDP: 30 percent; government spending as a percentage of GDP: 31 percent; unemployment rate: 4 percent; inflation rate: 5 percent. What is the misery index for this nation

Answers

The misery index for the country given the national data is 9%.

What is the misery index?

The misery index is the sum of the current unemployment rate and the current inflation rate. In the United States, the current misery index is 11.67%.

Misery index = unemployment rate + inflation rate

4% + 5% = 9%

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The treasurer for Pittsburgh Iron Works wishes to use financial futures to hedge her interest rate exposure. She will sell five Treasury futures contracts at $185,000 per contract. It is July and the contracts must be closed out in December of this year. Long-term interest rates are currently 16.30 percent. If they increase to 18.50 percent, assume the value of the contracts will go down by 15 percent. Also, if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $165,000. This expense, of course, will be separate from the futures contracts.

Required:
a. What will be the profit or loss on the futures contract if interest rates increase to 10.50 percent by December when the contract is closed out?
b. After considering the hedging, what is the net cost to the firm of the increased interest expense of $139,000?
c. What percent of this $139,000 cost did the treasurer effectively hedge away?

Answers

Answer:

Explanation:

185000x 1-0.15

= 185000 x 0.85

= 157250

gain = 185000-157250

= 27750

number of contracts = 5

5 x 27750

= 138750

other commitments = 16500

165000 - 138750

= 26250

this is the net cost

percentage hedged away:

138750/165000

= 0.841

= 84.1%

c. loss. there would be a loss on future contract sincelower interest would bring about greater bond prics and the purchase price would be more than the initial sales price.

Andrew Industries is contemplating issuing a ​-year bond with a coupon rate of ​(annual coupon​ payments) and a face value of . Andrew believes it can get a rating of A from Standard​ & Poor's.​ However, due to recent financial difficulties at the​ company, Standard​ & Poor's is warning that it may downgrade Andrew​ Industries' bonds to BBB. Yields on​ A-rated, long-term bonds are currently ​, and yields on​ BBB-rated bonds are . a. What is the price of the bond if Andrew Industries maintains the A rating for the bond​ issue? b. What will be the price of the bond if it is​ downgraded?

Answers

Answer:

The numbers are missing, so I looked for a similar question to fill in the blanks:    

Andrew Industries is contemplating issuing a 30​-year bond with a coupon rate of 7.13% ​(annual coupon​ payments) and a face value of $1,000. Andrew believes it can get a rating of A from Standard​& Poor's.​ However, due to recent financial difficulties at the​ company, Standard​ & Poor's is warning that it may downgrade Andrew​ Industries' bonds to BBB. Yields on​ A-rated, long-term bonds are currently 6.43%​, and yields on​ BBB-rated bonds are 6.84%.

a. What is the price of the bond if Andrew Industries maintains the A rating for the bond​ issue?

if the YTM is 6.43%, then the market price will be:

0.0643 = {71.30 + [(1,000 - M)/30]}/ [(1,000 + M)/2]

0.0643 x [(1,000 + M)/2] = 71.30 + [(1,000 - M)/30]

0.0643 x (500 + 0.5M) = 71.30 + 33.33 - 0.03333M

32.15 + 0.03215M = 104.63 - 0.03333M

0.06548M = 72.48

M = 72.48 / 0.06548 = $1,106.90

b. What will be the price of the bond if it is​ downgraded?

if the YTM is 6.84%, then the market price will be:

0.0684 = {71.30 + [(1,000 - M)/30]}/ [(1,000 + M)/2]

0.0684 x [(1,000 + M)/2] = 71.30 + [(1,000 - M)/30]

0.0684 x (500 + 0.5M) = 71.30 + 33.33 - 0.03333M

34.20 + 0.0342M = 104.63 - 0.03333M

0.06753M = 70.43

M = 70.43 / 0.06753 = $1,042.94

What are the things that you need to change for you to be a better person​??

Answers

Explanation:

Any negative attitude you might ha e toward life and/or workIf the way you treat others is not how you want to be treated, you need to change your behavior.Be open-mindedAlways try to see the good Love yourself

What are the principle advantages of using brokers, personalised trading networks and
associations in the marketing of international commodities?

Answers

Answer:

search it up online

Explanation:

A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: SUPPLIER A SUPPLIER B Quantity Unit Price Quantity Unit Price 1–199 $14.00 1–149 $14.10 200–499 13.80 150–349 13.90 500 + 13.60 350 + 13.70 Click here for the Excel Data File Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit. a-1. Which supplier should be used? Supplier A Supplier B a-2. What order quantity is optimal if the intent is to minimize total annual costs? 150 500 200 350 300 1

Answers

Answer:

I will take Supplier A and make orders of 500 units as give lower inventory cost

From the proposed units the best option to inimize cost is 500 units.

Explanation:

    Supplier A      Supplier B

    1 –199 $14.00         1–149 $14.10

200–499   13.80    150–349 13.90

     500+    13.60          350 + 13.70

Holding Cost 25% of the unit price.

D = annual demand =

800 monthly x 12 month = 9,600 per year

S= setup cost = ordering cost = 40

H= Holding Cost = $13.60 x 25% = 3.40

Optimal Order Quantity

taking $13.60 (order size must be over 500)

[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]

[tex]Q_{opt} = \sqrt{\frac{2(9,600)(40)}{3.40}}[/tex]

OOQ: 475.2708206

As it is below the 500 to get the $13.60 price is not a cost minimizing option but, it can be better than the alternative

Ordering 9600 / 500 x $40 = $768

Holding: 500/2 x $13.60 x 25% = $850

Total $ 1,618

Using Supplier B of $13.70 (reqirement order size +350)

H= Holding Cost = 13.70 x 25% = 3.43

[tex]Q_{opt} = \sqrt{\frac{2(9,600)(40)}{3.43}}[/tex]

OOQ = 473.5330787

This order size will minimize the inventory cost.

Ordering 9600 / 474 x $40 = $810

Holding: 474/2 x $13.70 x 25% = $812

Total $ 1,622

Given cases:

Ordering 9600 / 150 x $40 = $2,560

Holding: 150/2 x $14.00 x 25% = $262.5

Total $ 2,822.5

Ordering 9600 / 500 x $40 = $768

Holding: 500/2 x $13.60 x 25% = $850

Total $ 1,618

Ordering 9600 / 200 x $40 = $1,920

Holding: 200/2 x $13.80 x 25% = $345

Total $ 2,265

Ordering 9600 / 350 x $40 = $1,097

Holding: 350/2 x $13.70 x 25% = $599

Total $ 1,696

Ordering  9600 / 300 x $40 = $1280

Holding 300/2 x $13.80 x 25%  = $517.5

Total $1797.5

As per the equation , Supplier A and make orders of 500 units as give lower inventory cost and from the Proposed units the best calculation to minimize the cost is 500 Units.

Like :-

Supplier A               Supplier B

   1 –199 $14.00         1–149 $14.10

  200–499   13.80    150–349 13.90

    500+    13.60          350 + 13.70

So the Holding Cost 25% of the unit price.

D = Annual demand = 800 monthly x 12 month = 9,600 per year

S= setup cost = ordering cost = 40

H= Holding Cost = $13.60 x 25% = 3.40

Optimal Order Quantity

taking $13.60 (order size must be over 500)

As it is below the 500 to get the $13.60 price is not a cost minimizing option but, it can be better than the alternative

Ordering 9600 / 500 x $40 = $768

Holding: 500/2 x $13.60 x 25% = $850

Total $ 1,618

Using Supplier B of $13.70 (requirement order size +350)

H= Holding Cost = 13.70 x 25% = 3.43

This order size will minimize the inventory cost.

Ordering 9600 / 474 x $40 = $810

Holding: 474/2 x $13.70 x 25% = $812

Total $ 1,622

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Assume that Carla Corp. earned net income of $3,601,000 during 2021. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021.

Required:
Compute earnings per share for 2021.

Answers

Answer:

earnings per share = (net income - preferred dividends) / average outstanding shares

net income = $3,601,000preferred dividends = $0 (since they are noncumulative, any preferred dividend that is not paid during the year is lost and will not be paid in the future)outstanding shares = ?

we cannot calculate EPS since the number of shares is not given, the formula is incomplete:

EPS = ($3,601,000 - $0) / ? = $3,601,000 / ?

In order to determine EPS, you would need to introduce the number of shares.

E.g. the company has 1,000,000 shares, then EPS = $3,601,000/1,000,000 = $3.60

E.g. the company has 500,000 shares, then EPS = $3,601,000/500,000 = $7.20

What jobs will increase in demand in the near future?
O Technology, art and service
O Taxi drivers, postal carriers and fast food cooks
O Data entry, door to door sales and electronic equipment assemblers
O All of the above

Answers

Answer:

In my opinion, the jobs that will increase in demand in the near future is:

Option 3 - Data entry, door to door sales and electronic equipment assemblers.

Explanation:

Because the world is simply advancing to these new technologies that are being created, might i say the world is getting advanced each year that passes. Which makes Data Scientists, Artificial Intelligence Professionals, Cyber Security Professionals, Technical Engineering and other jobs get higher demands!

So i could suggest these jobs if you're looking for jobs that will be needed somewhat in the future.

I hope this will help you! ^^

Q1 As a consequence of the diversity of risk, risk management requires a … approach.


1.
narrow


2.
modern

3.
broader


4.
traditional

Q2The board’s role should be to steer the corporation towards corporate governance policies that support … sustainable growth in … value.


1.
long-term; stakeholder


2.
long-term; shareholder


3.
short-term; stakeholder


4.
short-term; shareholder

Q 3Which one of the following activities in a company needs to be reported under the triple bottom-line principle?


1.
Financial performance


2.
Technological performance


3.
Legal performance


4.Environmental performance
Q6 Which stage in the ERM process must be ongoing in order to increase the success of implementing the entire process?


1.
Risk treatment


2.
Risk analysis


3.
Communication and consultation


4.
Monitoring and review
Q10
The King III Report on Corporate Governance introduced which of the following new concepts? a Shareholder approval of remuneration policies b Alternative dispute resolution c Directors’ performance evaluation d Business rescue Choose the correct combination:   1. a, c 2. a, b, c 3. b, c, d 4. All of the above​

Answers

Risk management requires a broader approach.

The board’s role should be to steer the corporation towards corporate governance policies that support long-term sustainable growth in shareholder value.

The activities in a company that needs to be reported under the triple bottom-line principle is Financial performance

What is Risk management?

Risk management is known to be the method of knowing, assessing and managing threats to an firm's capital and earnings.

Note that these risks is one that emanate from different kinds of sources such as financial issues, legal liabilities, technology issues, strategic management errors, etc.

Learn more about Risk management  from

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Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 Purchased $6,500 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $300 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $900. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $12,300 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $12,300 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

Answers

Answer: Check attachment

Explanation:

Apr. 17:

Account payable:

= $6500 - $900

= $5600

Merchandise Inventory

= $5600 × 2%

= $5600 × 0.02

= $112

Cash = $5600 - $112

= $5488

Apr. 28:

Account payable:

= $12300 - $500

= $11800

Merchandise inventory

= $11800 × 1%

= $11800 × 0.01

= $118

Cash = $11682

Check attachment

Prepare the adjusting journal entries for the following transactions.

a. Supplies for office use were purchased during the year for $500, of which $100 remained on hand (unused) at year-end.
b. Interest of $250 on a note receivable was earned at year-end, although collection of the interest is not due until the following year.
c. At year-end, salaries and wages payable of $3,600 had not been recorded or paid.
d. At year-end, one-half of a $2,000 advertising project had been completed for a client, but nothing had been billed or collected.
e. Redeemed a gift card for $600 of services.

Answers

Answer: See attachment

Explanation:

The adjusting journal entries for the transactions has been attached. It should be noted that for (a), there was a debit of supplies expense by $400 which was calculated as:

= $500 - $100

= $400

For (d),the accounting revenue of $1000 was gotten as:

= 1/2 × $2000

= $1000

Martha is an 88-year-old legally blind widow. The assessed value of her condominium is $49,500. What is the total property tax exemption on her homesteaded property

Answers

The total property tax exemption on her homesteaded property will be $26,000.

What is total property tax exemption?

Generally, adult that are aged 65, older or disabled are qualified for the tax exemption on the date you become age 65 or disabled.

In conclusion , because her assessed value of her condominium is $49,500, then, she is entitled to a tax exemption on her homesteaded property up to $26,000.

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QUESTION 9 / 10
Which of the following statements is TRUE?
A. People with low credit scores are usually low-risk
borrowers.
B. The longer you use credit responsibly, the higher your
credit score will be.
C. Applying for several credit cards in one year can help
increase your credit score.
D. Paying off your entire credit card balance can lower
your credit score.

Answers

Answer:

B

Explanation:

Hello!

Let's analyze the statements and gather the accuracy of each response.

Note, that a higher credit score is good, and a lower one is bad.

A) People with low credit scores are usually very reckless with their money and their credit cards; therefore, they are high-risk borrowers to people who give them loans because they might never pay them back (which resulted in the low credit score to begin with)

B) The longer you use your credit card and pay on time, the more your credit score will rise. This is a very factual statement.

C) Applying for several credit cards can actually lower your credit score. If you have so many credit cards, you might end up forgetting to pay one, which lowers it, or with improper account management.

D) Paying off your credit card is good...so why would it lower a credit score?

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.

1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $250 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $800 for advertising for the current month.
8. Paid $2,500 cash for office salaries.
9. Paid $1,200 cash dividends to stockholders.
10. Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.

Answers

Answer:

General Ledger

1.

Cash $40,000 (debit)

Capital $40,000 (credit)

Owners Invest In the business

2.

Supplies $500 (debit)

Accounts Payable $500 (credit)

Supplies purchased on credit

3

Equipment $25,000 (debit)

Cash $3,500 (credit)

Note Payable $21,500 (credit)

Equipment purchased partly in cash and in credit

4.

Accounts Receivable $4,000 (debit)

Commission Earned $4,000 (credit)

Commission earned not yet received

5.

Rent Expense $700 (debit)

Cash $700 (credit)

Rent paid in cash

6.

Accounts Payable $250 (debit)

Cash $250 (credit)

Settlement of Accounts Payable

7.

Advertising Expense $800 (debit)

Accounts payable $800 (credit)

Advertising Bill due

8.

Salaries Expenses $2,500 (debit)

Cash $2,500 (credit)

Salaries paid

9.

Dividends $1,200 (debit)

Cash $1,200 (credit)

Dividends paid to owners of the company

10.

Cash $2,000 (debit)

Accounts Receivable $2,000 (credit)

Accounts Receivables settle their debts

Explanation:

See the journal entries prepared including narrations (for your learning and understanding)

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