g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?

Answers

Answer 1

Answer: 14,400; $17

Explanation:

Stock splits are a strategy by firms to increase the liquidity of their shares especially when they are trading at a high price. The firm divides the stock by a certain number thus increasing the number of shares by the multiple of the number. This action will divide the price of the stock and thus allow for more trade as they are cheaper.

A 4-for- stock split means that each share will become 4.

Your total number of share will become;

= 4 * 3,600

= 14,400 shares

The new price will be;

= 68/4

= $17 per share


Related Questions

What's the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually?

Answers

Answer:

The present value = $3,602.30

Explanation:

To calculate this, we will use the formula for calculating the future value for an amount invested, compounded semiannually at a certain interest rate. This is done as follows:

[tex]FV\ =\ PV(1+\frac{r}{n})^{(n\times t)}\\[/tex]

where:

FV = Future value = $4,500

PV = Present value = ??

r = interest rate = 4.5% = 4.5/100 = 0.045

n = number of compunding period per year = semiannually = 2

t = time = 5

[tex]4,500\ =\ PV(1+\frac{0.045}{2})^{(2\times 5)}\\\\4,500 = PV( 1+0.0225)^{10}\\4,500 = PV(1.0225)^{10}\\4,500 = PV (1.249203)\\Dividing\ both\ sides\ by\ 1.249203\ and\ making\ PV\ the\ subject\ of\ the\ formula\\\PV = \frac{4,500}{1.249203} \\PV= 3,602.297[/tex]

Therefore, the present value = $3,602.30

2. At an oral auction for used car, half of all bidders have a value of $1,500 and half have a value of $1,900. What is the expected winning bid if there are three bidders

Answers

Answer:  $1,700

Explanation:

The expected winning bid is the weighted average of the 2 different bids.

Half of the bids are for $1,500 so weight of $1,500 is 0.5.

Half of the bids are for $1,900 so weight of $1,900 is 0.5.

Expected Winning bid = (1,500 * 0.5) + ( 1,900 * 0.5)

= 750 + 950

= $1,700

Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5.2 percent paid semiannually and 25 years to maturity. The yield to maturity on this bond is 4.8 percent. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

$3,173.63

Explanation:

For computing the price of the bond we need to apply the present value i.e to be shown in the attachment

Given that,  

Future value = $3,000

Rate of interest = 4.8% ÷ 2 = 2.4%

NPER = 25 years × 2 = 50 years

PMT = $3,000 × 5.2% ÷ 2  = $78

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the price of the bond is $3,713.63

Indigo Corporation had the following tax information.
Year Taxable Income Tax Rate Taxes Paid
2015 $294,000 35% $102,900
2016 332,000 30% 99,600
2017 399,000 30% 119,700
In 2018, Indigo suffered a net operating loss of $487,000, which it elected to carry back. The 2018 enacted tax rate is 26%.
Prepare Indigo’s entry to record the effect of the loss carryback.
Account titles Debit Credit

Answers

Answer:

Explanation:

Given that:

Indigo Corporation had the following tax information.

Year      Taxable Income         Tax Rate               Taxes Paid

2015        $294,000                  35%                       $102,900

2016         332,000                    30%                        99,600

2017          399,000                    30%                       119,700

In 2018, Indigo suffered a net operating loss of $487,000, which it elected to carry back. The 2018 enacted tax rate is 26%.

The objective is to prepare the Indigo's entry to record the effect of the loss carryback.

The Income  Tax Refund Receivable = Taxable income(2018) × Tax rate(2018) + ( net operating loss - Taxable income(2018) )  × Tax rate(2018)

(332000 × 30%)+(476000-332000) × 30%

The Income  Tax Refund Receivable =  (332000 × 0.30)+(476000-332000) × 0.30

The Income  Tax Refund Receivable = 99600 + 144000× 0.30

The Income  Tax Refund Receivable = 99600 + 43200

The Income  Tax Refund Receivable = 142800

Therefore, Indigo Corporation ENtry can be prepared as follows:

Account titles                                        Debit          Credit

Income Tax Refund Receivable          142800

Benefit Due to Loss Carryback                             142800

To record the effect of the loss carryback

​Break-even EBIT​ (with and without ​taxes). Alpha Company is looking at two different capital​ structures, one an​ all-equity firm and the other a levered firm with ​$ million of debt financing at ​% interest. The​ all-equity firm will have a value of ​$ million and shares outstanding. The levered firm will have shares outstanding. a. Find the​ break-even EBIT for Alpha Company using EPS if there are no corporate taxes. b. Find the​ break-even EBIT for Alpha Company using EPS if the corporate tax rate is ​%. c. What do you notice about these two​ break-even EBITs for Alpha​ Company? a. What is the​ break-even EBIT for Alpha Company using EPS if there are no corporate​ taxes?

Answers

Complete Question:

Alpha company is looking at two different capital structures, one an all-equity firm and the other a leverages firm with $2 million of debt financing at 8% interest. The all-equity firm will have a value of $4 million and 400,000 shares outstanding. The leveraged firm will have 200,000 shares outstanding.

a. Find the break even EBIT for Alpha company using EPS if there are no corporate taxes.

b.Find the break even EBIT for Alpha company using EPS if the corporate tax rate is 30%

c. What do you notice about these two break-even EBITs for Alpha company?

Answer:

Alpha Company

a. Break-even EBIT, using EPS without taxes:

= (EBIT - Interest 1) * (1 - taxes)/No. of shares =  (EBIT - Interest 2) * (1 - taxes)/No. of shares

With alternative 1, there are no taxes, so:

= (EBIT - Interest 1)/No. of shares = EBIT - Interest 2)/No. of shares

= (EBIT - 0)/400,000 = EBIT - ($2,000,000 x 8%)/200,000

= (EBIT/400,000( = (EBIT - $160,000)/200,000

cross-multiplying:

EBIT200,000 = EBIT$64,000,000,000

dividing by 200,000:

EBIT = $64,000,000,000/200,000

EBIT = $320,000

b. Break-even EBIT, using EPS with taxes:

= (EBIT - Interest 1) * (1 - taxes)/No. of shares =  (EBIT - Interest 2) * (1 - taxes)/No. of shares

= {(EBIT - $0) * (1 - 0.30)}/400,000 = {(EBIT - $160,000) * (1 - 0.30)}/200,000

= EBIT/400,000 = (EBIT - $112,000)/200,000

cross-multiplying:

= EBIT 200,000 = EBIT $44,800,000,000

EBIT = $44,800,000,000/200,000

= $224,000

c. The two break-even EBITs are not the same.  When there are taxes, the break-even EBIT is $224,000, less by $96,000.

Explanation:

a) Data:

Alternative 1: All Equity:

No. of shares = 400,000

Value of shares = $4,000,000

Debt = $0

Interest on Debt = $0

Alternative 2: Equity + Debt:

No. of shares = 200,000

Value of shares = $2,000,000

Debt = $2,000,000

Interest on Debt = 8% or $160,000

b) Alpha's break-even EBIT is the point when the EBIT under alternative 1 are equal to the EBIT under alternative 2.  This implies that under these given alternative financing options, the earnings before interest and taxes are before no matter the alternative chosen.

Domingo Corporation uses the weighted...
Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,300 units. The costs and percentage completion of these units in beginning inventory were:
Cost Percent Complete
Materials costs $7,400 50%
Conversion costs $3,600 20%
A total of 8,700 units were started and 8,000 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs $160,600
Conversion costs $122,300
The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. How many units are in ending work in process inventory in the first processing department at the end of the month?
a. 700.
b. 1,700.
c. 6.400.
d. 2,700.

Answers

Answer:

3,000 units

Explanation:

Calculation for How many units are in ending work in process inventory

Using this formula

Ending work in process units =Beginning work in process units + Units started into production - Transferred to the second processing department units

Let plug in the formula

Ending work in process units= 2,300 units + 8,700 units - 8,000 units

Ending work in process units= 3,000 units

Therefore 3,000 units are in the ending work in process inventory in the first processing department at the end of the month.

A stock had returns of 15.51 percent, 22.47 percent, −8.68 percent, and 9.43 percent over four of the past five years. The arithmetic average return over the five years was 12.71 percent. What was the stock return for the missing year?

Answers

Answer:

24.82%

Explanation:

Arithmetic average = sum of observations / number of observations

Let x = the stock return for year 5

12.71 % = (15.51% + 22.47%  −8.68% + 9.43 + x) /5

Multiply both sides by 5

63.55% =  (5.51% + 22.47%  −8.68% + 9.43 + x)

63.55% = 38.73% + x

x =  63.55% - 38.73% = 24.82%

The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $10, all of which was reinvested in the company. The firm’s expected ROE for the next five years is 20% per year, and during this time it is expected to continue to reinvest all of its earnings. Starting in year 6, the firm’s ROE on new investments is expected to fall to 15%, and the company is expected to start paying out 40% of its earnings in cash dividends, which it will continue to do forever after. DEQS’s market capitalization rate is 15% per year. a. What is your estimate of DEQS’s intrinsic value per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Assuming its current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year? (Round your dollar value to 2 decimal places.) Because there is (Click to select) , the entire return must be in (Click to select) . c. What do you expect to happen to price in the following year? (Round your dollar value to 2 decimal places.)

Answers

Answer:

a) $94.88

b)  in 1 year, the intrinsic price of the stocks should increase to $109.11

Explanation:

year                      dividend              EPS

0                              0                       $10

1                               0                       $12

2                              0                       $14.40

3                              0                       $17.28

4                              0                       $20.736

5                              0                       $24.8832

6                              $11.45               $28.61568

growth rate up to year 5 = 20%

ROE growth rate starting year 6 = 15%

dividend growth rate starting year 6 = 15% x (1 - 40%) = 9%

cost of equity = 15%

horizon value at year 5 = $11.45 / (15% - 9%) = $190.83

current intrinsic value per stock = $190.83 / 1.15⁵ = $94.88

intrinsic price in 1 year = $190.83 / 1.15⁴ = $109.11

The estimate of DEQS’s intrinsic value per share is $94.88. Also, in 1 year, the intrinsic price of the stocks will increase to $109.11.

Based on the information given, the dividend and the earnings per share are given below:

year                     dividend             EPS

0                              0                       $10

1                               0                       $12

2                              0                      $14.40

3                              0                       $17.28

4                              0                       $20.736

5                              0                       $24.88

6                              $11.45               $28.616

Growth rate up to year 5 = 20%ROE growth rate starting year 6 = 15%Cost of equity = 15%

Therefore, the dividend growth rate starting year 6 will be:

= 15% x (1 - 40%)

= 15% × 60%

= 9%

Therefore, the horizon value at year 5 will be:

= $11.45 / (15% - 9%)

= $11.45 / 6%

= $190.83

Then, the current intrinsic value per stock will be:

= $190.83 / 1.15⁵

= $94.88

The intrinsic price in 1 year will be:

= $190.83 / 1.15⁴

= $109.11

Read related link on:

https://brainly.com/question/17081420

Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6 pounds $4.30 per pound $25.80 Direct labor 2.40 hours $5.00 per hour $12.00 During May, Jackson purchased 145,600 pounds of direct material at a total cost of $655,200. The total factory wages for May were $258,800, 90 percent of which were for direct labor. Jackson manufactured 21,000 units of product during May using 122,800 pounds of direct material and 50,900 direct labor-hours. The price variance for the direct material acquired by Jackson Industries during May is:

Answers

Answer:

Direct material price variance= $29,120 unfavorable

Explanation:

Giving the following information:

Standard: Direct materials 6 pounds $4.30 per pound $25.80

Actual= Jackson purchased 145,600 pounds of direct material at a total cost of $655,200.

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Actual price= 655,200/145,600= $4.5

Direct material price variance= (4.3 - 4.5)*145,600

Direct material price variance= $29,120 unfavorable

Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2,840 cost. On January 3, it is installed on a required operating platform costing $1,160, and it is further readied for operations. The company predicts the machine will be used for six years and have a $14,000 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.Required:Prepare journal entries to record the machine's disposal under each of the following separate assumptions: a. It is sold for $22,000 cash. b. It is sold for $88,000 cash. c. It is destroyed in a fire and the insurance company pays $32,500 cash to settle the loss claim.

Answers

Answer:

All the requirements are solved below

Explanation:

Purchase = $178,000

Ready to use cost = $2,480

Installation cost = $1,160

Salvage value = $14,000

Depreciation method = Straight line

Useful life = 6 years

Solution

Requirement A If sold for $22,000

Entry                                               DEBIT      CREDIT

Cash                                            $22,000

Accumulated depreciation       $140,000

Profit/loss on disposal               $20,000

Machinery                                                       $182,000

Requirement B If sold for $88,000

Entry                                             DEBIT        CREDIT

Cash                                            $82,000

Accumulated depreciation       $140,000

Profit/loss on disposal                                   $40,000

Machinery                                                       $182,000  

Requirement C If destroyed in fire and insurance company paid $32,500

Entry                                             DEBIT      CREDIT

Cash                                            $30,000

Accumulated depreciation       $140,000

loss from fire                              $12,000

Machinery                                                       $182,000

Workings

Cost =$178,000 + $2,480 + $1,160

Cost = $182,000

Accumulated depreciation = ([tex]\frac{182,000-14,000}{6}x5[/tex]

Accumulated depreciation = 140,000

The _____focuses on bringing different talents and perspectives together to make the best organizational decisions and to produce innovative, competitive products and services..

Answers

Answer:

Paradigm

Explanation:

Definition: a typical example or pattern of something; a model.

Beta is Question 10 options: a) A measure of the volatility of returns on an individual stock relative to the market b) Relates the risk-return trade-offs of individual assets to the market returns c) The computed cost of capital determined by multiplying the cost of each item in the optimal capital structure by its weighted presentation in the overall capital structure and summing up the results d) The cost of the last dollar of funds raised

Answers

Answer: a) A measure of the volatility of returns on an individual stock relative to the market

Explanation:

Beta is indeed a measure of the volatility of returns on an individual stock relative to the return on the market as a whole.

It is used in the Capital Asset Pricing Model which enables for the calculation of the stock's expected return.

Market Beta is always 1. Therefore betas measure shows how much more or less volatile than the market return, the stock return is. For instance, a beta of 2 means that the stock's returns are twice as volatile as the markets and a beta of 0.5 means the returns are only half as volatile as the market.

Booher Book Stores has a beta of 1.0. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 6%. The market risk premium is 4.5%, and the return on an average stock in the market last year was 10.5%. What is the estimated cost of common equity using the CAPM

Answers

Answer:

Cost of equity =  10.5%

Explanation:

The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM, Ke= Rf + β(Rm-Rf)  

Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)

This model can be used to work out the cost of equity as follows:

Ke= Rf + β (Rm-Rf)

Rf- 6%, β= 1.0, Rm- 10.5, E(r)- ?

Ke = 6% + 1.0× (10.5 -6)% = 10.5%

Ke  = 10.5%

Cost of equity =  10.5%

The following accounts are from last year's books of Sharp Manufacturing: Raw Materials Bal 0 (b) 154,800 (a) 166,000 11,200 Work In Process Bal 0 (f) 513,200 (b) 132,400 (c) 168,800 (e) 212,000 0 Finished Goods Bal 0 (g) 464,000 (f) 513,200 49,200 Manufacturing Overhead (b) 22,400 (e) 212,000 (c) 26,400 (d) 156,800 6,400 Cost of Goods Sold (g) 464,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year

Answers

Answer:

$132,400

Explanation:

Based on the information given we were told that Sharp make use of job order costing as well as applies manufacturing overhead to jobs which are often based on the direct labor costs, which simply means the amount of direct materials that is been used for the year will be a debit amount of $132,400 in the work in process .

Therefore the amount of direct materials used for the year will be $132,400

Bronco Corporation discovered these errors in August of Year 3:

Year Depreciation Overstated Prepaid Expense Omitted
1 $2500 $3000
2 4000 2000

Assume all current items are two months in duration. Net Income for Year 2 was $18,000. Assume all errors are discovered in August of Year #3. The Year #2 books are closed. The net effect on Year #3 Beginning Retained Earnings caused by the August Year #3 correcting journal entries was:

a. $5,500
b. $6,500
c. $6,000
d. $8,500
e. $4,500

Answers

Answer:

e. $4,500

Explanation:

Year            Depreciation overstated         Prepaid expense omitted

1                              $2,500                                $3,000

2                             $4,000                                $2,000

Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $3,000 - $2,000 = $23,000

This means that year 2's net income was understated by $5,000.

But year 1's net income was overstated by = $2,500 - $3,000 = -$500.

The adjustment on the retained earnings account should be $5,000 - $500 = $4,500

MAD’s target capital structure is 60 percent debt and 40 percent equity. The yield to maturity on the company’s new debt will be 10 percent. MAD’s beta is 1.7, the risk free rate is 4% and the required market return is 12%. If the company’s tax rate is 30 percent, then which of the projects will be accepted?

Answers

Answer: D) Projects A and C

Explanation:

The projects to be taken should have a higher IRR than the company's Weighted Average Cost of Capital.

Cost of Equity

= Risk free rate + beta( market return - risk free rate)

= 4% + 1.7 (12% - 4%)

= 17.6%

After tax cost of debt

= Yield ( 1 - tax rate)

= 10% * ( 1 - 30%)

= 7%

WACC = (Weight of debt * after tax cost of debt) + (weight of equity * cost of equity)

= (0.6 * 7% ) + ( 0.4 * 17.6%)

= 4.2% + 7.04%

= 11.24%

Projects A and C both have IRR higher than the company's WACC and so should be accepted.

The open systems anchor of organizational behavior states that: 1 point A. organizations affect and are affected by their external environments. B. organizations can operate efficiently by ignoring changes in the external environment. C. people are the most important organizational input needed for effectiveness. D. organizations should avoid internal conflicts to achieve efficiency. E. organizations should be open to internal competition to be able to obtain a sustainable competitive advantage.

Answers

Answer:

A. organizations affect and are affected by their external environments.

Explanation:

An organizational behavior can be defined as the study of people's opinions, feelings, actions and how people perceive an organization.

The open systems anchor of organizational behavior states that organizations affect and are affected by their external environments. The external environment comprises of factors such as;

1. Criteria set by the regulatory agencies where the organization is operating.

2. The state of the economy, either recessionary or inflationary.

3. The policies adopted by the government.

4. The investor's needs or requirements.

5. The culture of the business environment.

Which of the following is NOT one of the four levels of culture? A. Profit B. artifacts C. espoused values D. enacted values

Answers

Answer:

A. Profit

Explanation:

Culture is the shared characteristics and knowledge of a group of people that affects different aspects of their lives like language, religion, social traits, arts, and music.

Levels of culture are:

- Artefacts: these are physical manifestation of a culture like dress code, office allocation, awards, and ceremonies.

- Assumptions: are unconscious alignment with expected behaviour.

- Espoused value: these are stated values to be adhered to

- Enacted values: behaviours that are exhibited as a guide to others in a group

Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $108,000 and semiannual interest payments.

Semiannual Period-End Unamortized Premium Carrying Value
(0) January 1, issuance $8,271 $116,271
(1) June 30, first payment 7,444 115,444
(2) December 31, second payment 6,617 114,617
Use the above straight-line bond amortization table and prepare journal entries for the following:

a) The issuance of bonds on January 1.

b) The first interest payment on June 30.

c) The second interest payment on December 31.

Answers

Answer:

See the journal entries and explanation below.

Explanation:

The journal entries will look as follows

a) The issuance of bonds on January 1.

Date         Accounts title                              Debit ($)         Credit ($)  

Jan. 1        Cash                                              111,671

                   Premium on Bonds Payable                                8,271

                   Bonds Payable (w.1)                                        108,000

          (To record issuance of bonds.)                                                  

b) The first interest payment on June 30.

Date         Accounts title                                 Debit ($)         Credit ($)  

Jun. 30    Interest Expense (w.4)                       3,493  

                 Premium on Bonds Payable (w.2)      827

                 Cash (w.3)                                                                 4,320

               (To record first interest payment)                                              

c) The second interest payment on December 31.

Date         Accounts title                                 Debit ($)         Credit ($)  

Dec. 31    Interest Expense (w.4)                       3,493  

                 Premium on Bonds Payable (w.5)      827

                 Cash (w.6)                                                                 4,320

               (To record second interest payment)                                              

Workings:

w.1: Bond payable = Cash - Premium on Bonds Payable = $111,671 - $8,271

w.2: Premium on Bonds Payable = January 1 Unamortized Premium - June 30 Unamortized Premium = $8,271 - $7,444 = $827

w.3: Cash = $108,000 * 8% * (6 / 12) = $4,320

w.4: Interest expense = w.3 - w.2 = $4,320 - $827 = $3.493

w.5: Premium on Bonds Payable = June 30 1 Unamortized Premium - December 31 Unamortized Premium = $7,444 - $6,617 = $827

w.6: Cash = $108,000 * 8% * (6 / 12) = $4,320

w.7: Interest expense = w.6 - w.5 = $4,320 - $827 = $3,493

Bob: Listen, donuts are made to bring joy into our lives and to wake up our glazed faculties. Just let them be distributed according to unchanging moral principles of justice. The donuts will distribute themselves according to natural principles. We just take what we want and the leftovers will be appreciated by those who enjoy them most. Don't overcomplicate this. Where's the chocolate milk? End Part 2

Answers

Answer:

National law school of thought

Explanation:

The natural law school of thoughts refers to analyze the behavior of humans also it figured out the moral rule occurs from the behaviors.

It is inherent laws that are applied to all societies, communities, etc also it is common for all whether it is mentioned or officially announced

It should be rational and reasonable too

Therefore the given scenario represents the National law school of thought

Costs that are capitalized because they are expected to have future value are called product costs; costs that are expensed are called period costs. This classification is important because it affects the amount of costs expensed in the income statement and the amount of costs assigned to inventory on the balance sheet. Product costs are commonly made up of direct materials, direct labor, and overhead. Period costs include selling and administrative expenses.

A service company has which of the following costs

a. Direct Material
b. Overhead Costs
c. Product Costs
d. Expensed in the period incurred

Answers

Answer:

b. Overhead Costs

d. Expensed in the period incurred

Explanation:

-Direct material refers to the cost of the material used to manufacture a product.

-Overhead costs are the costs related to the operation of the business and they can't be assigned to a good or service.

-Product Costs are the costs to manufacture a product.

-Expensed in the period incurred are the period costs which are costs not related to the production of a good.

According to these definitions, a service company has the following costs: overhead costs and expensed in the period incurred because these are costs that are not related to the creation of a product.

On the other hand, the other options direct material and product costs are not right because these costs are directly related to products.

Due Diligence refers to diligently monitoring the interview for lies or half-truths the interviewee might include. Select one: True False

Answers

Answer: False

Explanation:

Due diligence is a review, audit or an investigation that is performed in order to confirm certain facts. Due diligence also involves looking at the financial records of w company before having a transaction with the company in order to ascertain some facts.

Due Diligence is not diligently monitoring the interview for lies or half-truths the interviewee might include. This is false.

As the athletic shoe buyer for Sports Authority, how would you go about forecasting sales for a new Nike running shoe?

Answers

Answer:

The answer is below

Explanation:

I would go about forecasting sales for a new Nike running shoe in the following ways:

1. Check past sales history: Examining Nike's sales history to check and differentiate which items have high sales well and those items that didn’t. This will help anticipate and forecast sales for the new Nike running shoe by putting it side by side with a similar product.

2. Conduct detailed market research: This is vital to predicting prospective sales in order to determine if the shoes will sell satisfactorily.

Making research to infer specifically the products, consumers wants will give Nike a current idea of what is in vogue. Thus, by conducting detailed research and discovering what their consumers prefer and disfavor, they will have the ability to predict sales for a new item.

Whispering Corporation began 2017 with a $94,200 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $352,400, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $505,400, the tax rate for all years is 40%, and taxable income for 2017 is $388,500.
Part 1
Compute income taxes payable for 2017.
Income taxes payable
$
Part 2
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit Credit
Part 3
Prepare the income tax expense section of the income statement for 2017 beginning with the line "Income before income taxes.". (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answers

Answer:

1. Income tax payable = Taxable income for 2017 * Income tax rate

Income tax payable = $388,500 * 40%

Income tax payable = $155,400

2.                          Journal Entry

Account Titles and Explanations      Debit         Credit

Income tax expense                         $202,160

($505,400*40%)  

Deferred tax liability                                              $46,760

($202,160-$155,400)  

Income tax payable                                               $155,400

($388,500*40%)

3.                   Income Statement (Partial)

                   For the Year Ended Dec 31, 2017

Income before income taxes            $505,400

Income tax expense

Current           $155,400  

Deferred         $46,760                      $202,160

Net Income                                         $303,240

Gabriele Enterprises has bonds on the market making annual payments, with eleven years to maturity, a par value of $1,000, and selling for $982. At this price, the bonds yield 7.6 percent.

Required:
What must the coupon rate be on the bonds?

Answers

Answer:

The answer is 7.35 percent

Explanation:

N(Number of periods) = 11years

I/Y(Yield to maturity) = 7.6 percent

PV(present value or market price) = $982

PMT( coupon payment) = ?

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 11; I/Y = 7.6; PV = -$982; FV= $1,000; CPT PV= $73.52

Therefore, coupon rate is ($73.52/$1,000) x 100 percent

=7.35 percent

Division A had ROI of 15% last year. The manager of Division A is considering an additional investment for the coming year. What step will the manager likely choose to take

Answers

Answer: c.Reject the investment if it returns less than 15% ROI.

Explanation:

Additional investments should yield incremental returns if they are to be accepted. In the previous year, Division A had an Return on Investment of 15%, when an additional investment is being considered, it must bring in more than that 15% if it is to be accepted.

Therefore, if an investment is to give a less than 15% ROI, it should be rejected as it is not bringing additional returns for the Division.

Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a quoted annual interest rate of 8 percent and the interest is paid semiannually. The yield to maturity on the bonds is 12 percent annual interest. There are 10 years to maturity.Required:Compute the price of the bonds based on semiannual analysis.

Answers

Answer:

Price of bond   = $770.60

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The value of bond for Heather Smith  can be worked out as follows:

Step 1  

PV of interest payments

Semi annul interest payment  

= 8%× 1000 × 1/2 =40

Semi-annual yield = 12/2 = 6% per six months

Total period to maturity (in months)  = (2 ×10) = 20 periods

PV of interest =  

40 × (1- (1+0.06)^(-20)/0.06)  = 458.796

Step 2  

PV of Redemption Value

= 1,000 × (1.06)^(-20)  = 311.80

Step 3 :Price of bond  

= 458.796  + 311.80 = 770.60

Price of bond   = $770.60

On July 1, 20Y7, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
A. Opened a business bank account with a deposit of $25,000 from personal funds.
B. Purchased office supplies on account, $1,850.
C. Paid creditor on account, $1,200.
D. Earned sales commissions, receiving cash, $41,500.
E. Paid rent on office and equipment for the month, $3,600.
F. Withdrew cash for personal use, $4,000.
G. Paid automobile expenses (including rental charge) for the month, $3,050, and miscellaneous expenses, $1,600.
H. Paid office salaries, $5,000.
I. Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900.
What would the Financial Statement look like?

Answers

Answer:

Explanation:

A) Debit cash 25,000 , credit capital 25,000

B)Credit Payable 1850 , Debit supplies 1850

C) Credit cash (1200), Debit payable (1200)

D) Debit cash 41,500 , credit sales commission 41,500

E)Credit cash (3600). debit rent 3,600

F)Credit cash ( 4000), debit drawings 4000

G)credit cash (4,650), debit automobile 3,050,miscellaneous 1600

H) Credit cash (5,000), debit salaries 5000

i)Credit supplies (900) debit supplies expense 900

Overall total

Cash = 25000-1200+41500-3600-4000=4650-5000 48,050

Supplies = 1850 -900 =950

Account payable = 1850-1200 =650

Capital = 25,000

Drawing =4000

Sales commission = 41,500

Salaries = 5,000

Rent = 3,600

Automobile expenses =3050

Miscellaneous expenses =1600

Supplies expenses = 900

Income statement

Revenue ( sales commission )                                        41,500

Expenses

salaries                              5,000

Rent                                    3,600

Supplies                                900

Automobile                          3,050

Miscellaneous                      1,600

Total expenses                                                                         14,150

Gross profit                                                                                27,350

Statement of financial position

Assets

Cash                                   48,050

Supplies                                  950

Total                                     49,000

Liabilities

Account payable                   650

Capital                                   25,000

Drawing                                  (4000)

Total                                      21,650

Owners equity                      27,350

Total liabilities and equities 49,000

Owners equity = ( sales commission - salaries - rent -supplies - automobile -miscellaneous )

Green Inc. made no adjusting entry for accrued and unpaid employee wages of $38,000 on December 31. This error would Multiple Choice Understate assets by $38,000. Overstate net income by $38,000. Understate net income by $38,000. Have no effect on net income.

Answers

Answer:

The answer is B. Overstate net income by $38,000.

Explanation:

Accrued expense is an expense that has been enjoyed or incurred but has been paid for. Examples of an accrued expense are unpaid wages/salary, unpaid electricity bill etc.

Usually, the adjusting entry for accrued expense is to debit the expense and debit increases expense while credit decreases it. Since there is no adjusting entry, that means no expense is being recognized on the income statement for this transaction. Hence, the net income increases (overstated). because ordinarily expense reduces net income.

Net sales$688,500 $450,000 Cost of goods sold 337,364 133,200 Determine the 2016 and 2017 trend percents for net sales using 2016 as the base year.

Answers

Answer:

Trend- % change in sales =  34.64%

Explanation:

Trend analysis entails determining the performance of a business over time by comparing its performance data from one period to another. The aim of trend analysis is to identify the behavior of a set of ratios over a period of time by comparing them across different years.

To determine the trend for a particular data, we use the formula below

% Change in variable =

(Current year figure - Previous year figure)/Previous year figure × 100

DATA

Current year figure  for sales (2017) - 450,000

Previous year figure for sale (2016) - 688,500

% change in sales =   (450,000 -688,500)/688,500 × 100 = 34.64%

% change in sales =  34.64%

This implies that the company made sales in 2017 which is 34.64% less than that made in 2016

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