Answer:
28.63%
Explanation:
The computation of the cost of preferred stock is shown below:
Cost of the preferred stock = Dividend ÷ Price of the stock
where,
Dividend is
= $1,000 × $15%
= $150
And, the price of the stock is
= Market value of the stock - flotation cost
= $576 - $52
= $524
So, the cost of preferred stock is
= $150 ÷ $524
= 28.63%
We ignored the marginal tax rate i.e 40%
Answer: $65
Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.
So, in the given question the two units sold would be costing $80 and $95
Hence,
Gross profit = $240 - ($80 + $95)
= $65
Answer:
$225,000
Explanation:
The cash flow statement is divided into three categories investing, operating and financing. The investing activity refers to those activities which deal in buying and selling for long term asset in cash. The buying is cash outflow while the selling is a cash inflow. So the amount reported under the investing activity is $225,000 as cash inflow.
Answer:
a. True
Explanation:
The uterine family represents the individual mother and mother children. in other way, it is you, your mother, your siblings, etc
The Uterine family implies the family description that shows the women have the children but they are not officially recorded as a members of the similar lineage
Therefore the given statement is true
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $1,323. Gabe Industries typically sells three Basic models for every Deluxe model.
First, we need to calculate the weighted sales participation:
Basic= 3/4= 0.75
Deluxe= 1/4= 0.25
Now, we need to calculate the weighted average selling price and variable cost:
weighted average selling price= (selling price* weighted sales participation)= (44*0.75 + 52*0.25)= 46
weighted average variable cost= (variable cost* weighted sales participation)= (25*0.75 + 25*0.25)= 25
Now, we can calculate the break-even point in units:
Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)
Break-even point= 1,323/ (46 - 25)= 63 units
