Answer:
D. $945,000.
Explanation:
The following income statement and additional year-end information is provided.
SONAD COMPANY
Income Statement
For Year Ended December 31
Sales $1,647,000
Cost of goods sold 807,030
Gross profit 839,970
Operating expenses
Salaries expense $225,639
Depreciation expense 39,528
Rent expense 44,469
Amortization expenses—Patents 4,941
Utilities expense 18,117 332,694
507,276
Gain on sale of equipment 6,588
Net income $513,864
Accounts receivable $29,000 increase Accounts payable $14,925 decrease
Inventory 23,425 increase Salaries payable 5,000 decrease
Prepare the operating activities section of the statement of cash flows using the indirect method.
Answer:
Cash flow from Operating Activities
Net income $513,864
Adjustment for Non-cash items :
Depreciation expense $39,528
Amortization expenses—Patents $4,941
Adjustment for Changes in Working Capital :
Increase in Accounts receivable ($29,000)
Decrease in Accounts payable ($14,925)
Increase in Inventory ($23,425)
Decrease in Salaries payable ($5,000)
Net Cash flow from Operating Activities $485,983
Explanation:
The Indirect method, reconciles the Operating Profit to the Operating Cash Flow by adjusting for the following items :
Non-cash items previously added or deducted from the Operating ProfitAdjustments for Changes in Working Capital itemsPlanet Company had operating income of $12,000, average operating assets of $125,000, and sales of $45,000. What is Planet's return on investment (ROI)
Answer:
36.36%
Explanation:
Return on investment is given as;
Profit / Cost of goods sold × 100%
Given that profit is $12,000 and sales is $45,000 ;
Cost of goods sold
= $45,000 - $12,000
= $33,000
Therefore, return on investment is
= 12,000 / 33,000 × 100%
= 36.36%
Use your own language to explain that short run supply curve by a price-taking firm is the positively-sloped portion of the short-run marginal cost curve.
Answer:
See the answer and explanation below
Explanation:
A price-taking firm is a firm in a perfectly competitive market where all firms are price takers. That is, no firm in a perfectly competitive can influence the price as only the market determines the price.
The short run supply curve for a price-taking firm refers to the short marginal cost (SMC) curve at and above the shutdown point.
Note: See the attached graph for the shut run supply curve. Also note that point E in the attached graph is the shutdown point.
The shutdown point is the point where the short run marginal cost (SMC) is equal to the average variable cost (AVC) (i.e. where MC = AVC = Shutdown point).
This indicates that the short-run supply curve for a price-taking firm is the part of the SMC curve that lies above AVC curve.
The part of the SMC curve that lies below the AVC or the shutdown point is not part of the short run supply curve of a price-taking firm, because the firm is not engaging in any production at that point.
Therefore, the short run supply curve of a price-taking firm is the increasing portion of the short run MC curve above the shutdown point.
This follows the law of supply which states that more quantity of the product of a firm will be supplied when there is a rise in the market price.
In summary, the short run supply curve of a price-taking firm is the positively-sloped portion of the short-run marginal cost curve
Discuss SOX in 500 words or more. How do logging and separation of duties help comply with SOX? How might database auditing and monitoring be utilized in SOX compliance? How can a dba use automation to comply with SOX frameworks?
Answer:
The Sarbanes-Oxley Act of 2002 was designed to protect investors and shareholders from accounting frauds, misguided financial statements and intentional errors by improving accuracy and reliability of company's accounts. This act was created in response to financial scandals and frauds that took place before 2002. Public corporations are required to comply with the Laws and regulations in the Sarbanes-Oxley Act.
Explanation:
The Enron scandal was the base for the Sarbanes Oxley Act. It was created to avoid further potential frauds in the businesses. Auditors at Enron were responsible for ensuring accuracy of financial statements. Anderson deceived many investors who relied on companies financial statements. Anderson certified financial statements of the company without questioning them about the relevancy and accuracy. Anderson was found guilty of obstructing justice by destroying Enron's related auditing documents. Attorneys helped to mold some of company's special purpose partnership. These deals lead to demise of the company. Merrill Lynch replaced research analyst after his coverage of the Enron company which dissatisfied the company executives. Merrill Lynch was subject to threats by Enron that it would loose $750 million from stock offerings.
You find a zero coupon bond with a par value of $10,000 and 14 years to maturity. The yield to maturity on this bond is 5.1 percent. Assume semiannual compounding periods. What is the price of the bond
Answer:
Bond Price = $4940.8468 rounded off to $4940.85
Explanation:
The price of a zero coupon bond is simply calculated by calculating the present value of the face value of the bond that the bond pays at maturity. The formula for the price of a zero coupon bond is,
Bond Price = Face Value / ( 1 + r )^n
Where,
r is the rate or YTM n is the number of periods left to maturityAssuming that the r or YTM is always stated in annual terms, the semi annual YTM will be 5.1% / 2 = 2.55%
Assuming semi annual compounding periods, the total number of periods or n will be,
n = 14 * 2 = 28
Bond Price = 10000 / (1 + 0.0255)^28
Bond Price = $4940.8468 rounded off to $4940.85
Microsoft online. Which of the following price customization tool is Microson using?
a. Controlling availability
b. Setting prices based upon transaction characteristics
c. Managing product-line offerings
d. Setting prices based upon buyer characteristic
Answer:
Setting prices based upon buyer characteristic
Explanation:
Microson is setting prices based on buyer characteristics. The question says it is giving educational discounts of 10 percent to parents and students. This is value pricing and it mainly involves setting prices with your customers or consumers in focus. Microson based their prices on the worth as perceived by the parents and students. It's discount is characteristic of the people buying it.
The maximum tax rate on estates and gifts: Question 7 options: is gradually increasing. has remained constant. is gradually declining. has increased sharply.
Is gradually declining.
An agent who accepts a bribe to purchase goods for a principal from a seller who is a personal friend breaches his ________ duty by taking the money, since it is the agent's duty to work only for the best interests of the principal. Group of answer choices
Answer: fiduciary
Explanation:
An agent who accepts a bribe to purchase goods for a principal from a seller who is a personal friend breaches his fiduciary duty by taking the money, since it is the agent's duty to work only for the best interests of the principal.
Fiduciary has to do with trust which exists between a beneficiary and a trustee or an agent and the principal.
TB MC Qu. 6-107 Mcmurtry Corporation sells a product for ... Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales are 10,608 units. The margin of safety as a percentage of sales is closest to:
Answer:
The answer is 22%
Explanation:
Margin of Safety equals:
(Current sales level - break-even point) ÷ Current sales level
Break-even sales = $2,652,000 (10,608 units x $250 per unit)
Current sales = $3,400,000 (13,600 units x $250 per unit)
Therefore, Margin of Safety is:
($3,400,000 - $2,652,000) ÷ $3,400,000
= 0.22
Expressed as a percentage = 22%
Presented below is the partial bond discount amortization schedule for Cullumber Corp. Cullumber uses the effective-interest method of amortization.
Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value
Issue date $31,273 $778,727
1 $36,450 $38,936 $2,486 28,787 781,213
2 36,450 39,061 2,611 26,176 783,824
Required:
Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1
Answer:
Journal entry is given below
Explanation:
To record the payment of interest and the discount amortization at the end of period 1 we should debit the Interest expense and credit cash and discount
DATA
Interest expense in year 1 = $38,936
Interest to be paid = $36,450
Discount amortization = $2,486
Entry DEBIT CREDIT
Bond interest expense $38,936
Cash $36,450
Discount on bonds $2,486
You're evaluating the performance of your pension fund. You invested $100 initially, which grew to $106 after 4 months, and then to $107 after another 6 months.
a. What was your HPR during the first 4 months?b. What was your HPR during the next 5 months?c. What was your total HPR over the 9 months?
Answer:
a) the holding period return (HPR) for the first 4 months = ($106 - $100) / $100 = 6%
b) the holding period return (HPR) for the next 5 months = ($107 - $106) / $106 = 0.94%
c) the holding period return (HPR) for the 9 months period = ($107 - $100) / $100 = 7%
The holding period return measures the total return on an investment over a certain period of time. It does not necessarily calculate annual returns, since the holding period can be more or less than 1 year.
Suppose you invested in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of today and then you sold it for . What was your dividend yield and capital gains yield on the investment?
Complete Question:
Suppose you invested $100 in the Ishares High Yield Fund HYG your dividend yield and capital gains yield on the investment?
It paid a dividend of $2 today and then you sold it for $95. What was Dividend Yield and Capital Gains Yield on the investment?
Answer:
Dividend Yield is 2%
Capital Gains Yield is -5%
Explanation:
Dividend Yield:
We can calculate the Dividend Yield using the following formula:
Dividend Yield = D0 / Initial Stock Price
Here
D1 was Dividend paid just now and is $2 per share
Initial Stock Price before the dividend payment was $100 per share
By putting values, we have:
Dividend Yield = $2 per share / $100 per share = 2%
Capital Gains Yield:
We can find capital gains yield by using following formula:
Capital Gains Yield = (P1 - P0) / P0
Here
P1 is $95
P0 is $100
By putting values we have:
Capital Gains Yield = ($95 - $100) / $100 = -5%
Jamie has worked for ABC Printing for 5 years. During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan. Assuming ABC uses graded schedule vesting, how much will Jamie be able to roll into an IRA if she left ABC Printing after 5 years?
Answer:
$20,000
Explanation:
Generally a graded vesting schedule lasts 6 years. After the first 2 years, the employee is entitled to 20% of accrued benefits (in this case contributions to her retirement plan). Then, the employee will be vested an additional 20% of the contribution benefits per year until the sixth year when 100% of the benefits are vested.
In this case, Jamie would be able to roll out $25,000 x 80% = $20,000
End of year % vested
2 20%
3 40%
4 60%
5 80%
6 100%
"Net income for the period was $200,000. The retained earnings account had a beginning balance of $25,000. If the company paid dividends of $20,000 during the year, what is the ending balance in retained earnings?"
Answer:
Retained earning balance at the end would be = $205,000
Explanation:
Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid
The net income would increase the balance of the retained earnings hence it is added to it.
The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.
So applying this to the question, we have
Retained earning balance at the end would be:
25,000 + 200,000 - 20,000 = $205,000
Retained earning balance at the end would be = $205,000
The production budget shows expected unit sales of 40000. Beginning finished goods units are 3800. Required production units are 41600. What are the desired ending finished goods units
Answer:
desired ending inventory= 5,400 units
Explanation:
Giving the following information:
Sales= 40,000 units
Beginning finished goods= 3,800 units
Production= 41,600 units
To calculate the desired ending inventory, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
41,600= 40,000 + desired ending inventory - 3,800
41,600 + 3,800 - 40,000= desired ending inventory
desired ending inventory= 5,400 units
In working on a bid for project you have determined that $245,000 of fixed assets will be required and that they will be depreciated straight-line to zero over the 5-year life of the project, and you can get $23,200 for these fixed assets at the end of 5 years. You will also need to increase net working capital by 15,000 initially and recoup the investment in net working capital at the end of the project. You have also determined that the discount rate should be 14 percent and the tax rate will be 35 percent. In addition, the annual cash costs will be $68,500. What is the minimum amount of annual sales revenue that is required for you to make money on the project? PLEASE SHOW WORK
A. $151,627.90
B. $155,119.00
C. $162,515.75
D. $102,627.90
E. $227,012.50
Assume BGL Enterprises increases its operating efficiency by lowering its costs while holding its sales constant. As a result, given all else constant, the: A. return on assets will decrease.
B. profit margin will decline.
C. equity multiplier will decrease.
D. return on equity will increase.
E. price-earnings ratio will increase.
Answer:
Question 1:
required investment $245,000
depreciation expense per year = ($245,00 - $23,200) / 5 = $44,360
you will also require $15,000 in working capital
annual cash costs = $68,500
what is the minimum amount of cash sales for accepting the project:
net cash flow₁ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14 = (0.65SR - $28,999) / 1.14 = 0.5702SR - $25,437.72
net cash flow₂ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14² = (0.65SR - $28,999) / 1.14² = 0.5002SR - $22,313.79
net cash flow₃ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14³ = (0.65SR - $28,999) / 1.14³ = 0.4387SR - $19,573.50
net cash flow₄ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360} / 1.14⁴ = (0.65SR - $28,999) / 1.14⁴ = 0.3849SR - $17,169.74
net cash flow₅ = {[(sales revenue - $68,500 - $44,360) x 0.65] + $44,360 + $15,000} / 1.14⁵ = (0.65SR - $13,999) / 1.14⁵ = 0.3376SR - $7,270.64
NPV = -initial outlay + cash flows
NPV = 0
initial outlay = cash flows
$260,000 = 0.5702SR - $25,437.72 + 0.5002SR - $22,313.79 + 0.4387SR - $19,573.50 + 0.3849SR - $17,169.74 + 0.3376SR - $7,270.64
$260,000 = 2.2316SR - $91,765.39
$351,765.39 = 2.2316SR
sales revenue = $351,765.39 / 2.2316 = $157,629.23
the closest answer is B = $155,119, but its NPV will be negative.
so we have to select C = $162,515.75 that results in an NPV = $10,887.
Question 2:
The correct answer is D. return on equity will increase.
If you lower your costs while your sales remain the same, your profits will increase as well as your ROE.
Edna is a leading brain surgeon in the United States. She enters into a contract to perform a complicated brain surgery on Ben. However, since Edna is very busy, she wants to assign this contract to a less experienced surgeon, Charles. This would be Charles's first operation of this type. Ben can object to this assignment and prevent it because the contract between Ben and Edna is a(n):
Complete Question:
Edna is a leading brain surgeon in the United States. She enters into a contract to perform a complicated brain surgery on Ben. However, since Edna is very busy, she wants to assign this contract to a less experienced surgeon, Charles. This would be Charles's first operation of this type. Ben can object to this assignment and prevent it because the contract between Ben and Edna is a(n):
Group of answer choices.
A. contract for services to be performed in the future.
B. contract involving personal skill.
C. services contract.
D. employment contract.
Answer:
B. contract involving personal skill.
Explanation:
In this scenario, Edna a leading brain surgeon in the United States enters into a contract to perform a complicated brain surgery on Ben. However, Edna is very busy and wants to assign this contract to a less experienced surgeon, Charles which would be his first operation of this type. Hence, Ben can object to this assignment (brain surgery) and prevent it because the contract between Ben and Edna is a contract involving personal skill.
Apparently, it can be deduced that Edna has competent and professional skills which is the reason why she's the leading brain surgeon in USA. Ben having this information at his disposal chose to go into the contract with Edna, who is an experienced brain surgeon. Therefore, the contract between the two (2) parties is solely based on Edna's personal skill.
The expected average rate of return for a proposed investment of $625,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $250,000 for the 5 years, is which of the following?
a.16%
b.50%
c.40%
d.18%
Answer:
C. 40%
Explanation:
Parwin Corporation plans to sell 40,000 units during August. If the company has 16,500 units on hand at the start of the month, and plans to have 17,500 units on hand at the end of the month, how many units must be produced during the month?
Answer:
41,000 units
Explanation:
The computation of units must be produced during the month is shown below:-
Units Produced = Units at Year End - Units at beginning + Units Sold
= 17,500 units - 16,500 units + 40,000 units
= 57,500 units - 16,500 units
= 41,000 units
Therefore for computing the units produced during the month we simply applied the above formula.
The company must produce 41000 units during the month. The entire cost of direct materials and labor as well as the total cost of manufacturing overhead may be added together to get the overall cost of the product.
Below is a calculation of the number of units that must be generated during the month:-
Units Produced = Units at Year's End - Units at Start + Units Sold
40,000 units + 17,500 units less than 16,500 units.
16,500 units less than 57,500 units
= 41,000 units
Therefore, we used the aforementioned calculation to calculate the number of units generated throughout the month.
All of the direct and indirect expenses firms incur when producing a good or rendering service are referred to as production costs. Various expenditures, including labor, raw materials, consumable manufacturing supplies, and general overhead, might be included in production costs.
Various expenditures, including labor, raw materials, consumable manufacturing supplies, and general overhead, might be included in production costs.
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The most powerful of the five competitive forces is usually: Select one: a. The competitive pressures that stem from ready availability b. The competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage c. The competitive pressures associated with the potential entry of new competitors d. The bargaining power and leverage that large customers are able to exercise
Answer:
b. The competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage.
Explanation:
The Porter’s five forces of competition is a framework developed by Michael E. Porter in 1979, it is used to measure and analyze an organization's competitiveness in a business environment.
The Porter's five forces of competition framework are:
1. The bargaining power of suppliers.
2. The bargaining power of customers.
3. Threat posed by substitute products.
4. Threats posed by new entrants.
5. Threats posed by existing rivals in the industry.
The most powerful of the five competitive forces is usually the competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. When the amount of competitors (sellers), as well as the quantity of goods and services they provide are large, the lesser their competitive strengths or advantage in the market because the customers have a large pool of finished goods and services to choose from and vice-versa.
Nakatomi Corporation produces 10,000 units of Product A at a cost of $20 per unit. A detailed breakdown of the cost is below. Choose the correct answer from the options provided. Per Unit Variable costs $ 12 Allocated manufacturing overhead costs 3 Allocated general administrative costs 5 $ 20 Outside supplier's offer $ 17 What are the total relevant cost of producing the units internally
Answer:
$120,000
Explanation:
Calculation for the total relevant cost of producing the units internally
Using this formula
Total relevant cost = Variable costs per unit*Units Produce
Let plug in the formula
Total relevant cost=$12 per unit* 10,000 units
Total relevant cost=$120,000
Therefore the total relevant cost of producing the units internally will be $120,000
TB MC Qu. 8-198 The Puyer Corporation makes ... The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 1.02 Shipping $ 1.52 Advertising $ 51,200 $ 0.32 Executive salaries $ 61,200 Depreciation on office equipment $ 21,200 Other $ 41,200 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 16,200 Debs in February, then the total budgeted fixed selling and administrative expenses for February is:
Answer:
The Puyer Corporation
The total budgeted fixed selling and administrative expenses for February is:
$174,800
Explanation:
a) Data and Calculations:
Advertising $ 51,200
Executive salaries $ 61,200
Depreciation on office equipment $ 21,200
Other $ 41,200
Total fixed selling & admin. exp. $174,800
b) The Puyer Corporation's fixed selling and administrative expenses are always fixed in total but not per unit of Deb within the short-term because they do not depend on Deb's volume of production or sale. They are unlike the variable aspect of expenses that are fixed per unit of Deb but vary in total. Those expenses which do not vary with the level or volume of sales or production activity of Deb are regarded as fixed because the level or volume of sales or production activity of Deb does not change their totals. But, in the long-term, Puyer's fixed expenses will vary in total as well as per unit of Deb produced or sold.
In a partnership liquidation, the final cash distribution to the partners should be made in accordance with the
Answer: B) balances of the partners' capital accounts.
Explanation:
Final cash distributions should be made proportionally to partners based on what they have in their Capital Accounts.
The balance in the Capital accounts of Partners shows the level of contribution that each partner has made to the business as well as their ownership proportion. When cash is to be distributed finally, it should therefore be based on the proportion of these Capital account balances to reflect the contribution and ownership.
A firm has current assets of $36,000, cash of $5,000, current liabilities of $20,000, total assets of $80,000 and total liabilities of $45,000. What is its net working capital?
a. $16,000
b. $28,000
c. $35,000
d. $44,000
Answer:
Option A, $16000, is the right answer.
Explanation:
The current assets = $36000
Cash = $5000
Current liabilities = $20000
Total assets = $80000
Total liabilities = $45000
Use the below formula to find the net working capial.
Net working capital = Current assets - Current Liabilities
Net working capital = 36000 – 20000
Net working capital = 16000
Therefore, option A, $16000 is correct.
A__________produces finished-goods inventory in advance of customer demand using a forecast of sales.
Answer:
Push system.
Explanation:
A push system produces finished-goods inventory in advance of customer demand using a forecast of sales and as such it is categorized as a make to stock because the production of goods are not based on actual demand by the consumers.
Under a push system, manufacturing is strictly based on a projected production plan and the flow of information between the manufacturer and the market is in the same direction with those of raw materials used.
"What action is the Federal Reserve MOST likely to take if it is worried about increasing inflation due to extremely rapid economic expansion?"
Answer: Increase reserve requirements
Explanation:
Reserve requirements refer to the proportion of deposits that banks are required to leave with the Fed for safekeeping and the protections of depositors.
This amount reduces the amount of money that the banks can give out as loans and so is quite useful in monetary policy.
If the Fed is worried about increasing inflation due to extremely rapid economic expansion, the way to rein this in is to embark on a contractionary monetary policy.
One way to do so is to increase the reserve requirement which would mean that banks have to hold more money. Should this happen then the money supply in the economy would decrease which would ideally decrease inflation and reduce the funds available for both investment and consumption which would lead to a decrease in economic activity as well.
It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? Select all that apply.a. Working capital will remain the same at $18,964,118b.Total Assets will rise to $235,535,291c. Chesters' long-term debt will rise by $9,000,000d.The total investment for Chester will be $217,192,866e.Total liabilities will be $139,957,573
Answer:
Statements (b) and (e) are true.
Explanation:
According to the above, computation of the data given are shown below;
According to the statement (b), Total assets will rise to = $235,535,291
According to the statement (e) , Total liabilities will be $139,957,573
Also, according to the question, new liability amounts to = $10,000,000
Therefore,
Total Stockholder's Equity = Total assets - Total Liabilities
= $235,535,291 - $139,957,573 - $10,000,000
= $85,577,718
Leverage = Total Assets ÷ Total Stockholder's Equity
= $235,535,291 ÷ $85,577,718
= 2.7
According to the above analysis, statements (b) and (e) are true.
Answer :
b.Total Assets will rise to $235,535,291.
e.Total liabilities will be $139,957,573.
Explanation:
The following statements are true :
Working notes :
Total Assets = $235,535,291 Total Liabilities =$139,957,573 New Liability = $10,000,000Formula:
Total Stockholder's Equity = Total assets - Total Liabilities
Total Stockholder's Equity = $235,535,291 - $139,957,573 - $10,000,000
Total Stockholder's Equity = $85,577,718
Leverage = Total Assets ÷ Total Stockholder's Equity Leverage= $235,535,291 ÷ $85,577,718 Leverage= 2.7
According to the above scenario the correct answer is B and E.
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Ashley wants to increase the profits of her e-business. She recognizes that most online searchers click on links on the first search page, so she optimizes her website structure so that it ranks higher on a search. What strategy does this illustrate
Answer:
The strategy is Search Engine Optimization (SEO), an important strategy in digital marketing.
Explanation:
Search Engine Optimization (SEO) means optimizing the website structure, improve on keywords strategy and visual effects to increase the website's visibility, its ranking on search engine like google, bing, yahoo search .etc... and subsequently, push up the traffic volume to the website.
Mr. Fred Mitchell is requesting the birth record for Amy, his birth daughter. Mr. and Mrs. Mitchell gave Amy up for adoption four years ago. Should you release the records to him? Why or why not?
Answer: No you should not
Explanation:
Mr. and Mrs. Mitchell gave Amy up for adoption four years ago and in effect legally voided their guardianship of her. As far as the law is concerned, they are no longer Amy's parents. As such, Mr Fred Mitchell requesting for information on the girl is akin to a stranger doing the same and so cannot be honored, at least not without the consent of the new parents.
A company has 500 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $60 per share. It also has 20,000 shares of common stock outstanding, and the total value of its stockholders' equity is $680,000. The company's book value per common share equals:
Answer:
$32.50
Explanation:
Calculation for the company's book value per common share
Using this formula
Book value per common share =[Stockholders' equity -Preferred shares*Preferred stock Stock price per share/ Shares of common stock outstanding,
Let plug in the formula
Book value per common share= [$680,000 - (500 x $60)]/20,000
Book value per common share=$680,000-$30,000/20,0000
Book value per common share= $650,000/20,000
Book value per common share=$32.50
Therefore the company's book value per common share will be $32.50
