Louisiana Timber Company currently has 5 million shares of stock outstanding and will report earnings of $6.32 million in the current year. The company is considering the issuance of 1 million additional shares that will net $35 per share to the corporation. a. What is the immediate dilution potential for this new stock issue?

Answers

Answer 1

Answer:

0.214 per share

Explanation:

Calculation to determine the immediate dilution potential for this new stock issue

First step is to calculate the EPS before issuance

EPS before issuance = 6.32 / 5

EPS before issuance= 1.264

Second step is to calculate the EPS after new share issue

EPS after new share issue = 6.32 / (5+1)

EPS after new share issue=6.32/6

EPS after new share issue= 1.05

Now let calculate the Dilution potential

Dilution potential = 1.264 - 1.05

Dilution potential = 0.214 per share

Therefore the immediate dilution potential for this new stock issue is 0.214 per share


Related Questions

World trade benefits from free and fair trade among nations. Nevertheless, governments of many countries continue to practice protectionism. While protectionism earns profits for domestic producers and tariff revenues for governments, consumers pay higher prices because of protective restrictions. Imposing tariffs increases the price of goods to consumers. Removing tariffs decreases the price of goods to consumers. Imposing quotas limits supply and therefore increases the price of goods to consumers. Removing quotas makes products more available and therefore decreases the price of goods to consumers.

Answers

Answer:

Economic effects of imposing a tariff is that it will increase the prices for the goods and consumers will have to pay more for certain good.

Explanation:

Many countries promote trade without tariff so that they can benefit the consumers of their country, but this is only possible if both countries have good relations. Many countries are governed by World trade organizations in order to govern the trade policies. The countries can flourish their trade if they have minimum tariffs and trade policies. Imposition of higher tariff will create burden on consumers of a country.

Suppose the college administrators estimate that the beautification initiative will cost $3,600. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 170 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $18.

Answers

Answer:

the questions seems to be incomplete, so I looked for similar ones:

the total benefit of the project is estimated at $18 x 170 = $3,060

the result is probably lower than expected because:

this is an nonexcludable good, and it is nonrival in consumptionthe free rider problem occurs herecollege administrators should not carry out the project id they only base their decision on expected benefit

Explanation:

Whitewater Wine Foundation expects 125,000 attendees at their May festival. Wine-tasters pay a $10 entrance fee which includes a tasting glass and wine-tasting wristband. Designated drivers pay a $5 entrance fee and receive a ticket for one non-alcoholic drink. Of the attendees, 10% are expected to be designated drivers. Costs to the festival are $.25 for wristbands, $.90 for tasting glasses and $.15 for non-alcoholic drinks. All drink tickets are expected to be used. What is the total purchases budget for the May festival

Answers

Answer:

Total purchase budget= $134,375

Explanation:

First, we need to calculate the number of wristbands, tasting glasses, and non-alcoholic drinks glasses.

Wristbands= one per attendant= 125,000

Tasting glasses= 125,000*0.90= 112,500

Non-alcoholic drinks glasses= 125,000*0.10= 12,500

Now, the total purchase budget:

Purchases:

Wristbands= 125,000*0.25= 31,250

Tasting glasses= 112,500*0.9= 101,250

Non-alcoholic drinks glasses= 12,500*0.15= 1,875

Total purchase budget= $134,375

Given the following historical demand and forecast, calculate the Mean Absolute Percentage Error: Week 1 Demand: 50 Forecast: 49 Week 2 Demand: 54 Forecast: 50 Week 3 Demand: 58 Forecast: 63
FE = D-F n FE RSFE RSFE = 27=1 FE; MFE = n n (FE;) 21-1|FEil MSE = MAD = n n FE; 2i=1 =FE TS = RSFE MAPE n MAD MAD about 6.0%
A. about 2.0%
B. about 18.0%
C. about 4.3%
D. about 1.00%

Answers

Answer:

A. about 2.0%

Explanation:

The forecasted error for week 1 is 1%. The demand for week 1 is 50 while estimated demand or forecast was 49. The difference between the two values is 1. The forecasted demand for week 2 is 50 while actual demand for week 2 is 54. The difference between the forecast and actual value is 4. The difference in week 3 is 5. Mean absolute deviation is 6% which means there can be 6% standard deviation from the forecasted values.

The error in Mean Absolute Percentage would be as follows:

A). about 2.0%

What is the Mean Absolute Percentage?

Given that,

Week 1

The error in the forecast = 1%

Demand  = 50

Forecasted demand = 49

The difference in the estimated demand and actual demand = 50 -49 = 1

Week 3

The error in the forecast = 1%

Demand  = 58

Forecasted demand = 63

The difference in the estimated demand and actual demand = 63 - 58 = 5

Also,

Mean deviation [tex]= 6%[/tex]%

This implies that the standard deviation in the three values is of [tex]6[/tex]%.

∵ 2% is the error

Thus, option A is the correct answer.

Learn more about "Demand" here:

brainly.com/question/3331860

Blue Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $156,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires five equal annual rentals of $52,800 payable each December 31, beginning December 31, 2019. An interest rate of 6% is implicit in the lease agreement. Collectibility of the rentals is not probable. Prepare any journal entry for Blue on December 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answers

Answer:

See the journal entries below.

Lease receivable = $235,757.58

Explanation:

Before the journal entries are prepared, the present value of the annual rentals or lease receivable is first calculated using the formula for calculating the present value of an ordinary annuity due since the annual rentals is payable each December 31, beginning December 31, 2019 as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) …………………………………. (1)

Where;

PV = Present value annual rentals or lease receivable = ?

P = Annual rentals = $52,800

r = Interest rate = 6%, or 0.06

n = number of years the lease agreement covered = 5

Substitute the values into equation (1), we have:

PV = $52,800 * ((1 - (1 / (1 + 0.06))^5) / 0.06) * (1 + 0.06)

PV = $235,757.58

The journal entries will now look as follows:

Date            Account Tittle                             Debit ($)            Credit ($)    

31-Dec-19    Lease Receivable                   235,757.58

                   Cost of Goods Sold                156,000.00

                   Sales Revenue                                                       235,757.58

                   Inventory                                                                156,000.00

                   (To record the lease.)                                                                  

31-Dec-19   Cash                                            52,800.00

                  Lease Receivable                                                   52,800.00

                  (To record the receipt of lease payment.)                                  

Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $345,000, and budgeted direct labor hours were 23,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:
Job 39 Job 40 Job 41 Job 42
Beginning balance $26,200 $32,800 $16,700 $0
Materials requisitioned 18,000 21,000 8,400 13,300
Direct labor cost 9,100 18,100 3,050 4,200
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 110 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.
Required:
1. Calculate the overhead rate based on direct labor cost.
% of direct labor cost
2. Set up a simple job-order cost sheet for all jobs in process during June. If an amount is zero, enter "0".
Naranjo Company
Job-Order Cost Sheets
Job 39 Job 40 Job 41 Job 42
Balance, June 1 $ $ $ $
Total $ $ $ $
3. What if the expected direct labor rate at the beginning of the year was $20 instead of $25? What would the overhead rate be?
New budgeted direct labor cost = $
New overhead rate = % of direct labor cost
How would the cost of the jobs be affected?

Answers

Answer:

1. Budgeted direct labor cost = Average wage rate for direct labor * Budgeted direct labor hours

Budgeted direct labor cost = $30 * 23,000

Budgeted direct labor cost = $690,000

Overhead rate = Budgeted overhead costs/Budgeted direct labor cost

Overhead rate = $345,000 / $690,000

Overhead rate = 0.5

Overhead rate = 50%

2. Applied Overhead = Direct labor cost * Overhead rate

 

                                          Job 39       Job 40       Job 41     Job 42

Beginning balance         $26,200     $32,800    $16,700    $0

Material requisitioned    $18,000      $21,000     $8,400     $13,300

Direct labor cost             $9,100        $18,100      $3,050     $4,200

Applied Overhead          $4,550       $9,050      $1,525       $2,100

Total Cost                        $57,850     $80,950   $29,675    $19,600

3. Budgeted direct labor cost = Average wage rate for direct labor * Budgeted direct labor hours

Budgeted direct labor cost = $20 * 23,000

Budgeted direct labor cost = $460,000

Overhead rate = Budgeted overhead costs/Budgeted direct labor cost

Overhead rate = $345,000 / $460,000

Overhead rate = 0.75

Overhead rate = 75%

Saginaw Inc. completed its first year of operations with a pretax loss of $692,500. The tax return showed a net operating loss of $884,500, which the company will carry forward. The $192,000 book–tax difference results from excess tax depreciation over book depreciation. Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answers

Answer:

Missing word "Tax rate is 34 percent"

Date  Particulars                                              Debit         Credit

          Deferred tax asset (884,500*34%)   $300,730

                 Deferred tax benefit                                        $300,730

          (To record the deferred tax consequences of the current year NOL)

          Deferred tax asset (192,000*34%)    $65,280

                 Deferred tax benefit                                        $65,280

          (To record the deferred tax consequences of the depreciation)

The following transactions occur for Badger Biking Company during the month of June: a. Provide services to customers on account for $34,000. b. Receive cash of $26,000 from customers in (a) above. c. Purchase bike equipment by signing a note with the bank for $19,000. d. Pay utilities of $3,400 for the current month. Analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (Decreases to account classifications should be entered as a negative.)

Answers

Answer:

See below

Explanation:

Assets =

Liabilities + Stockholder's equity

Accounts receivables $34,000(+)

Revenue $34,000(+)

Cash $26,000(+)

Accounts receivables $26,000(-)

Bike equipment $19,000(+) Notes payable $19,000(+)

Cash $3,400(-)

Retained earnings $3,400(-)

The first transaction increases asset(account receivable) by $34,000 while revenue(stockholder's equity) increased by the same amount

The cash receipt of $26,000 increases assets cash by $26,000 and decreases an asset , account receivable by the same amount

The purchase of an asset by note payable increases asset, bike equipment by $19,000 while liabilities note payable also increases by $19,000

The payment of utilities for $3,400 decreases asset cash by $3,400 while stockholder's equity retained earnings decreases by same amount.

Naumann Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 200 100 % Variable expenses 36 18 % Contribution margin $ 164 82 % Fixed expenses are $130,000 per month. The company is currently selling 1,200 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $46. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected

Answers

Answer:

An  increase in net operating income of $127,200

Explanation:

Consider the variable effect of the changes.

Sales ($400 x 400)                                    $160,000

Less Variable expenses ( $82 x 400)      ($32,800)

Contribution                                               $127,200

therefore,

An  increase in net operating income of $127,200

Chamberlain Co. wants to issue new 17-year bonds for some much-needed expansion projects. The company currently has 12.2 percent coupon bonds on the market that sell for $1,434.96, make semiannual payments, and mature in 17 years. What coupon rate should the company set on its new bonds if it wants them to sell at par

Answers

Answer:

The company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.

Explanation:

There is a need to first calculate the yield to maturity (YTM) using the following RATE function in Excel:

YTM = RATE(nper,pmt,-pv,fv) * Number of semiannuals in a year =  RATE(nper,pmt,-pv,fv)*2 .............(1)

Where;

YTM = yield to maturity = ?

nper = number of periods = number of years to maturity * number of semiannuals in a year = 17 * 2 = 14

pmt = semiannual coupon payment = face value * (annual coupon rate / number of semiannuals in a year) = 1000 * (12.2% / 2) = 61

pv = present value = current bond price = 1434.96

fv = face value of the bond = 1000

Substituting the values into equation (1), we have:

YTM = RATE(14,61,-1434.96,1000)*2

Inputting =RATE(14,61,-1434.96,1000)*2 into excel (Note: as done in the attached excel file), the YTM is obtained as 4.81%.

Therefore, the company should set the coupon rate on its new bonds at current yield to maturity of 4.81% if it wants them to sell at par.

Tommy's parents died in a plane crash and he went to live with his guardian, Aunt Rose. Rose had a very small house and did not have a separate bedroom and bath for 12-year-old Tommy. She and Tommy decided to use some of his inheritance to pay for an addition to the house. He had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid. The stock transfers are:

Answers

Answer:

presumed voidable unless Rose can show no unfair advantage was taken.

Explanation:

In the given scenario Tommy had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid for the addition to the house.

However Tommy is a minor living with his guardian Aunt Rose.

She may have an unfair influence over him that will force him to make the share transfers.

Considering this the transfer of shares can be viewed as voidable until she proves she did not use the unfair advantage of being a guardian to push the transaction through

define nationalization.​

Answers

Answer:

the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state.

Explanation:

Mrs. Williams finds that she has two options for investing $32,000.02 for fifteen years. The first option is to deposit the $32,000.02 into a fund earning a nominal rate of discount d(4) payable quarterly. The second option is to purchase an annuity-immediate with 15 level annual payments, the annuity payments computed using an annual effective rate of 7%, and then when she gets an annuity payment, to immediately invest it into a fund earning an annual effective rate of 5%. Mrs. Williams calculates that the second option produces an accumulated value that is $1,500 more than the accumulated value yielded by the first option. Calculate d(4).

Answers

Answer:

faith

Explanation:

Pina Corp. enters into a contract with a customer to build an apartment building for $921,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $156,000 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $52,000 each week that completion is delayed. Pina commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Determine the transaction price for the contract, assuming Pina has limited information with which to develop a reliable estimate of completion by the August 1, 2021, deadline.

Answers

Question Completion:

Completed by August 1, 2021 August 8, 2021 August 15, 2021 After August 15, 2021 Probability 70 % 20 6 4.

Answer:

Pina Corp.

The transaction price for the contract, assuming Pina has limited information with which to develop a reliable estimate of completion by the August 1, 2021, deadline is:

= $921,300.

Explanation:

Data and Calculations:

Completed by           Probability

August 1, 2021                 70%

August 8, 2021                20%

August 15, 2021                 6%

After August 15, 2021        4%

Total =                             100%

Contract price = $921,300

Performance bonus = $156,000

Expected completion date = August 1, 2021

Reduction of bonus per week if completion is delayed = $52,000

After August 15 (three weeks of non-completion), there is no performance bonus because it would have been reduced to $0 ($156,000/$52,000 = 3 weeks).

Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 74,000 $ 74,000 Power costs $ 34,200 $ 33,400 Inspection costs $ 27,000 $ 33,400 Assembly costs $ 39,000 $ 39,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives

Answers

Answer:

Explanation:

Relevant costs are the costs which are affected by the decisions made by the management of an organization while irrelevant costs do not change in future as they're not affected by the decisions from the management.

Based on the information given, the relevant cost are:

1. Power cost

2. Inspection cost

The non relevant cost are:

1. Supplies cost

2. Assembly cost

Calculate Cost of Goods Manufactured for 2019 using the following information. Direct Materials, Jan. 1, 2019 $ 40,000 Work-in-Process, Dec. 31, 2019 69,000 Direct Labor 48,500 Finished Goods, Dec. 31, 2019 105,000 Finished Goods, Jan. 1, 2019 128,000 Manufacturing Overhead 72,500 Direct Materials, Dec. 31, 2019 43,000 Work-in Process, Jan. 1, 2019 87,000 Purchases of Direct Material 75,000

Answers

Answer:

$234,000

Explanation:

Calculation to determine the Cost of Goods Manufactured for 2019

First step is to calculate the direct materials used in production

Direct materials used in production=$40,000+$75,000-$43,000

Direct materials used in production=$72,000

Second step is to calculate the COGM

COGM=$87,000+$72,000+$48,500+$72,500-$69,000

COGM=$211,000

Now let calculate the COGS

COGS=$128,000+$211,000-$105,000

COGS=$234,000

Therefore the Cost of Goods Manufactured for 2019 is $234,000

Answer:

sry need to answer (points) :(

Explanation:

Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Laptops $1,000 $500 40% Tablets 600 300 60% The estimated fixed costs for the current year are $3,192,000. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year.

Answers

Answer:

Break-even point (units)= 8,400

Explanation:

Giving the following information:

Laptops $1,000 $500 40%

Tablets 600 300 60%

Fixed costs= $3,192,000

To calculate the break-even point for the whole company, we need to use the following formula:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)

Weighted average contribution margin= (0.4*1.000 + 0.6*600) - (0.4*500 + 0.6*300)

Weighted average contribution margin= $380

Break-even point (units)= 3,192,000 / 380

Break-even point (units)= 8,400

The export business in China is growing. Uncle George, who has just returned from a trade expo in Shanghai, has informed you that the port authority of Ningbo expects the demand to reach the same level as Shanghai. The port authority of Ningbo is now deciding how to change its system to accommodate this surge in demand. They have two options, (a) to retire their existing x-ray machine and buy an x-ray machine similar to the one used by the Shanghai port, or (b) to buy another x-ray machine similar to the one they already own and therefore operate the system with two similar machines. Both the options will cost the port authority of Ningbo the same. Purely from the perspective of reducing lead-time, is (a) or (b) better for you? Please show your detailed analysis.

Answers

Answer:

Assuming that the capacity of the new X-ray machine is the same as the capacity of two older machines, the difference results from the number of units waiting in line (queue). You would need two different groups of workers to move the containers into the correct position if you use the two older machines, while you need only one group to move them to the new machine. This decreases lead time since coordinating work also requires time, it might be a short time, but it is more time at the end of the day.

Lyon Manufacturing Company produces products A, B, C, and D through a joint process. The joint costs amount to $100,000. Product Units Produced Sales Value at Split-Off Additional Costs of Processing Sales Value After Processing A 1,500 $10,000 $2,500 $15,000 B 2,500 $30,000 $3,000 $35,000 C 2,000 $20,000 $4,000 $25,000 D 3,000 $40,000 $6,000 $45,000 If B is processed further, profits will: Group of answer choices

Answers

Answer:

Increase by $2,000.

Explanation:

Calculation to determine what the profit will be if B is processed further,

First step is to calculate the Inremental Revenue

Inremental Revenue,=

$35,000 - $30,000

Inremental Revenue = $5,000

Now let calculate B profit if processed further

Using this formula

B profit if processed further=Inremental Revenue- Incremental Cost

Let plug in the formula

B profit if processed further=$5,000-$3,000

B profit if processed further= $2,000 Increase

Therefore If B is processed further, profits will Increase by $2,000.

The difference between a car's original cost and its selling price is called the markup. A. True or B. False​

Answers

It’s true I believe
I think this is true

Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools Activity Rate
Setting up batches $ 87.25 per batch
Assembling products $ 6.38 per assembly hour
Processing customer orders $ 53.91 per customer order
Data concerning two products appear below:
Product S96U Product Q06F
Number of batches 34 45
Number of assembly hours 105 820
Number of customer orders 17 29
Required:
a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system?
b. How much overhead cost would be assigned to Product QO6F using the company's activity-based costing system?

Answers

Answer:

Results are below.

Explanation:

To allocate overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

S96U:

Setting up batches= 87.25*34= $2,966.5

Assembling products= 6.38*105= $669.9

Processing customer orders= 53.91*17= $916.47

Total allocated costs= $4,552.87

QO6F:

Setting up batches= 87.25*45= $3,926.25

Assembling products= 6.38*820= $5,231.6

Processing customer orders= 53.91*29= $1,563.39

Total allocated costs= $10,721.24

The president of the Micro Brewing Corporation asks you, as the company economist, to forecast changes in consumer beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $5.50 to $7.50, the quantity demanded will decrease from 2200 units to 1800 units a month. Should the Micro Brewing Corporation raise its price? Explain the economic basis for this recommendation to the president

Answers

Answer:

It is more profitable to raise the selling price by $2.

Explanation:

To determine whether the company should raise the selling price, we need to determine the effect on income. The best option is the one with the higher sales revenue.

Sales revenue= selling price * number of units

Current:

Sales revenue= 5.5*2,200= $12,100

Proposal:

Sales revenue= 7.5*1,800= $13,500

It is more profitable to raise the selling price by $2.

A pump has failed in a facility that will be completely replaced in 3 years. A brass pump costing $6000 installed will last 3 years. However, a used stainless steel pump that should last 3 more years has been sitting in the maintenance shop for a year. The pump cost $13,000 new. The accountants say the pump is worth $7000 now. The maintenance supervisor says that it will cost an extra $500 to reconfigure the pump for the new use and that he could sell it used (as is) for $4000.
(a) What is the book cost of the stainless steel pump?
(b) What is the opportunity cost of the stainless steel pump?
(c) How much cheaper or more expensive would it be to use the stainless steel pump rather than a new brass pump?
a. $1500 cheaper
b. $1500 more expensive
c. $7500 cheaper
d. $7500 more expensive

Answers

Answer:

A. $7,000

B. $4,000

Explanation:

(a) Based on the information given the book cost of the stainless steel pump will be $7,000 reason been that we were told that the pump is worth the amount of $7,000 now.

(B) Based on the information given the opportunity cost of the stainless steel pump will be $4,000 reason been that we were told that the pump future Salvage worth in which the pump could likely be sold is $4,000

(c) Calculation for How much cheaper or more expensive would it be to use the stainless steel pump rather than a new brass pump

Based on the information given to make use of a new brass pump will cost the amount of $6,000 and in a situation where the stainless steel pump is been use the total value will be the pump present value of the amount of $7,000 in addition with the value to reconfigure the pump of the amount of $500 which indicate that the stainless steel pump is more expensive Calculated as:

More expensive=($7,000+$500)-$6,000

More expensive=$7,500-$6,000

More expensive=$1,500

Therefore the stainless steel pump is MORE EXPENSIVE with the amount of $ 1500 more expensive than the new brass pump.

Vic, who was experiencing financial difficulties, was able to adjust his debts as follows:
a. Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncle's estate, Vic's debt will be canceled in the uncle's will.
The $25,000 debt cancellation is Vic's gross income when the uncle dies.
b. Vic borrowed $80,000 from First Bank. The debt was secured by land that Vic purchased for $100,000. Vic was unable to pay, and the bank foreclosed when the liability was $80,000, which was also the fair market value of the property.
Vic has a $ gain as a result of the foreclosure.
c. The Land Company, which had sold land to Vic for $80,000, reduced the mortgage on the land by $12,000.
The $12,000 reduction in the debt is Vic's gross income because the debt reduction was made by the seller of the property.

Answers

Answer:

Explanation:

From what I can tell, you've already answered the question underneath it

The management of Maltwo Co. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2015, the accounting records show the following data. Inventory, January 1 (10,000 units) $ 37,000 Cost of 110,000 units purchased 479,000 Selling price of 90,000 units sold 720,000 Operating expenses 150,000 Units purchased consisted of 40,000 units at $4.20 on May 10; 50,000 units at $4.40 on August 15; and 20,000 units at $4.55 on November 20. Income taxes are 30%. Instructions: Prepare comparative condensed income statements for 2015 under FIFO and LIFO. (Show computations of ending inventory.) Answer the following questions for management. Which inventory cost flow method produces the most meaningful inventory amount for the balance sheet? Why? Which inventory cost flow method produces the most meaningful net income? Why? How muc

Answers

Answer:

Net income for Maltwo Co. is $132,300

Explanation:

FIFO

Sold 90,000 units

Cost of sold units =  

opening 10,000 units for $3.7 = $37,000

purchased 40,000 units for $4.20 = $168,000

purchased 40,000 units for $4.4 = $176,000

Total cost of goods sold = $381,000

Sales = $720,000

less: cost of goods sold = $381,000

less: operating expenses = $150,000

Operating income = $189,000

less: Income tax 30% = $56,700

Net Income = $132,300

LIFO

Sold 90,000 units

Cost of sold units =  

purchased 20,000 units for $4.55 = $91,000

purchased 50,000 units for $4.40 = $220,000

purchased 20,000 units for $4.20 = $84,000

Total cost of goods sold = $395,000

Sales = $720,000

less: cost of goods sold = $395,000

less: operating expenses = $150,000

Operating income = $175,000

less: Income tax 30% = $52,500

Net Income = $122,500

Most meaningful net income is calculated by FIFO because in most of the businesses goods purchased first are sold first and if not then the goods purchased the earliest cross its expiry date and eventually results in a loss for the company.

So the net income for Maltwo Co. is $132,300

The City of Lora issued $5,000,000 of general government, general obligation, 8%, 20-year bonds at 103 on April 1, 2017 20X7, to finance a major general government capital project. Interest is payable semiannually on each October 1 and April 1 during the term of the bonds. In addition, $250,000 of principal matures each April 1. If Lora's fiscal year-end is December 31, what amount of debt service expenditures should be reported for this DSF for the 20X7 fiscal year

Answers

Answer:

$200,000

Explanation:

The value of the government obligation = $5,00,000, 8%, 20 years bonds payable at 103

Interest expenses = $5,000,000 * 8/100 * 6/12 = $200,000.

Thus, $200,000 will be reported as debt service expenses in the fiscal year 20X7.

A trader wishes to know the cost of goods sold during the year.
Which financial statment will provide the answer? *
A Balance sheet
B Profit and loss Account
C Trading Account
D Trial Balance​

Answers

The answer should be C

The real payoff of driving forces is to help managers understand: A. the extent to which rivals have more than two competitively valuable competencies or capabilities. B. what strategy changes are needed to prepare for the impacts of those driving forces. C. the overall strength of the five competitive forces model versus a strategic group map. D. whether the industry's strategic group map will be static or dynamic. E. what conditions exist in the economy at large.

Answers

Answer:

B. what strategy changes are needed to prepare for the impacts of those driving forces.

Explanation:

Driving force analysis is defined as the process by which managers and businesses identify and account for changes that occurs in the industry.

They influence the structure of the industry and also the competitive behaviour of rival companies.

So driving force analysis will help the manager formulate strategies that will mitigate the effects of these driving forces on the company's performance.

On January 1, 2020, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Barwood's journal entries for January 1, 2020, and December 31, 2020 and 2021

Answers

Answer and Explanation:

The journal entries are shown below;

On Jan 1, 2020

No journal entry is required

On Dec 31, 2020

Compensation expense Dr ($150,000 ÷ 2) $75,000

       To paid in capital stock option $75,000

(Being compensation expense is recorded)

On Dec 31, 2021

Compensation expense Dr ($150,000 ÷ 2) $75,000

       To paid in capital stock option $75,000

(Being compensation expense is recorded)

A company's income statement showed the following: net income, $130,000; depreciation expense, $38,000; and gain on sale of plant assets, $12,000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,000; merchandise inventory increased $26,000; prepaid expenses increased $7,800; accounts payable increased $5,000. Calculate the net cash provided or used by operating activities.

Answers

Answer:

$138,200

Explanation:

Calculation the net cash provided or used by operating activities.

Net income $130,000

Depreciation $38,000

Gain on sale long-term asset ($12,000)

Account Receivable decreased $11,000

Inventory Increased ($26,000)

Prepaid Expenses Increased ($7,800)

Account Payable Increased $5,000

Net cash provided by operating activities $138,200

Therefore net cash provided or used by operating activities is $138,200

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