Communication exchanges are viewed through an individual's , which influences how the communication is interpreted.

Beckett, Inc., has no debt outstanding and a total market value of $200,000. Earnings before interest and taxes, EBIT, are proje

FrozenT [24]

Answer:

Beckett, Inc.

Earnings Per Share:

a-1. Earnings Per Share:

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Earnings per share:

Recession = $24,000/8,000 $3.00

Normal = $30,000/8,000 $3.75

Expansion = $35,400/8,000 $4.43

a-2. Percentage changes in EPS:

Recession = -$0.75/$3.75 x 100 = -20%

Expansion = $0.68/$3.75 x 100 = 18.13%

b-1. EPS after recapitalization:

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Interest at 8% $8,000 $8,000 $8,000

Earnings after interest $22,000 $27,400 $16,000

Earnings per share:

Recession = $16,000/8,000 $2.00

Normal = $22,000/8,000 $2.75

Expansion = $27,400/8,000 $3.43

b-2. Percentage changes in EPS:

Recession: -$0.75/$2.75 x 100 = -27.27%

Expansion: $0.68/$2.75 x 100 = 24.73%

Explanation:

1. Data:

Market Value = $200,000

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Issue of debt for $75,000 with 8% interest

Proceeds to repurchase shares of stock.

Outstanding shares = 8,000

Ignore taxes

5 0

3 years ago

Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international bus

statuscvo [17]

Answer:

There has been a drastic change and shift in the world economy over the past 30 years.

There is a migration from a world where national economies were once self-contained entities, separated and isolated from each other due to some barriers like time zones, distance, government regulations, investments, language and business systems.

During the 1960s, there were four stylized facts that described the demographics of the global economy.

First, the U.S dominated the world economy and the world trade.

The second was the U.S dominance in the world foreign direct investment picture.

Thirdly, was the dominance of large, multinational U.S companies in the international business scene.

Although, the U.S is still dominating world's economy, but it's share of world output and world's export has declined since 1960.

It doesn't spell doom for U.S economy but rather reveals the growth in industralization in developing and growing economies like China, South Korea, India, etc.

Shifts in the world economy can be spotted in the shifts in multinational enterprises.

Two major trends are found in the demographics of the multinational enterprises.

One is seen in the rise of non-U.S multinationals especially the Japanese multinationals.

Secondly, is the emergence of small and medium-sized multinationals.

These shifts are seen in the fall of the Communist in Eastern Europe and the republic of the former Soviet Union.

The implications of these trends are similar to U.S and Britain. These had been the big players in the international scene. But that has changed. To win orders, the U.S and Britain have to compete with competitors around the world.

There is great opportunities for companies in Hong Kong to seriously pursue export market due to the decline in the influence of the U.S and Britain in the world economy.

We can say that we are moving to a world where barriers to cross-border trade and investments are declining, perceived distances are being eliminated due to the advances in transportation and technology and national economies are merging into interdependent, integrated global economic system.

4 0

3 years ago

Dr. Peabody recorded an $82 telephone bill that he will pay within thirty days. Which of the following statements is correct?

lana66690 [7]

Answer:

A. Telephone expense is debited $82; accounts payable is credited $82.

Explanation:

Mr. Peabody has incurred a debt of $82 on telephone expenses. His expenses have increased by $82, and his debts(liabilities) have also increased by $82.

An increase in expenses is recorded by debiting the relevant expense account. Mr. Peabody will debit the telephone expense account by $82.

Liabilities have increased by $82. An increase in liabilities is recorded by crediting the liabilities account. Mr. Peabody will complete this transaction by crediting the liabilities account by $82.

7 0

2 years ago

A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340

boyakko [2]

Answer:

The correct answer is:

excess of $15,800 (d.)

Explanation:

In order to calculate the cash excess or deficiency for March, we have to determine the net balance for the period from January, February and March, after deducting the total expenditures from the incomes as follows:

Cash Receipts (income)

January 1 balance = $ 290,000

January = $ 1,061,200

February = $ 1,182,400

March = $ 1,091,700

Total cash receipt = $3,625,300

Cash payments (expenditure)

January = $ 984,500

February = $ 1,210,000

March = $ 1,075,000

Total payments = $ 3,269,500

Net cash available = total cash receipts - total cash payments

= 3,625,300 - 3,269,500 = $355,800

Note, we are told that the minimum cash requirement = $340,000

Therefore:

Cash excess (deficiency) = Net cash available - minimum cash requirement

= 355,800 - 340,000 = $15,800 (excess)

<em>excess because cash available is greater than the minimum cash requirement.</em>

5 0

3 years ago

On January 1, 2018, Moore, a fast-food company, had a balance in its Cash account of $54,000. During the 2018 accounting period,

7nadin3 [17]

Answer:

Net cash flow as at the year end= $22,100

Explanation:

The statement of cash flows for Moore shall be calculated as follows:

Cash balance as at January 1, 2018= $54,000

Cash inflow from operating activities= $35,600

Cash outflow from investing activities= ($43,000)

Cash outflow from financing activities= ($24,500)

Net cash flow as at the year end= $22,100

4 0

3 years ago