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2 years ago

Explain the distinction between par value and no-par value stock.

1 answer:

4 0

The par value of an inventory is the fee in line with proportion assigned by way of the enterprise that problems it, regularly set at a totally low amount which includes 1 cent. Stocks are issued without a particular minimum price. Neither form has something to do with the real price of marketplace proportion.

Shares include stocks wherein the possession of a organisation or business has been divided. One share represents a partial ownership interest in the organisation over the total variety of shares.

A stock is a shape of safety that represents the holder's proportional hobby within the issuing employer and is typically bought on a inventory exchange.

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A firm's total cost function is given by the equation TC=4000+5Q+10Q and marginal cost is given by the equation MC=5+20Q

Zinaida [17]

The answer is A because of 5q allowing it to be MC

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3 years ago

Kevin's boat was wrecked by hurricane Harvey (a federally declared natural disaster). Damage to the boat was estimated at $30,00

SVEN [57.7K]

Answer:

A) $4,900

Explanation:

Options are: "A) $4,900 B) $5,000 C) $9,900 D) $14,900"

Particulars Amount

Original cost $25,000

Damage $30,000

Lower of the two is $25,000

Less: Insurance reimbursement $15,000

Actual loss $10,000

Less: Deduction $100

Less: 10% of AGI (10% of 50,000) $5,000

Final Deduction $4,900

Note: Flat $100 is deducted from this amount and also 10% of AGI, i.e 10% of $50,000 is deducted to finally arrive at the deduction.

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3 years ago

Glover Corporation issued $2,000,000 of 7.5%, 6-year bonds dated March 1, with semiannual interest payments on September 1 and M

Stels [109]

Answer: This could be explained as below :-

Explanation:

A. Bonds were issued for $97 with par value of $100, hence they were issued on discount.

B. Market rate was higher, as company issued bonds on discount.

C. Amortization = $2,000,000 * 7.5% * 10/12 = $125,000

Discount = $60,000/6 * 10/12 = $8,333

Total interest expense = $125,000 + $8,333 = $133,333

D. Carrying value = $2,000,000 - $51,667 ($60,000 - $8,333) =$1,948,333

5 0

4 years ago

Builder's Outlet just hired a new chief financial officer. To get a feel for the company, she wants to compare the firm's sales

Shkiper50 [21]

Answer:

The answer is: Income statement

Explanation:

As she wants to get information on sales and costs, the Income statement is the statement that she should looking for. With the Balance sheet statement, it only shows information on the financial position reporting the firm's assets, liabilities and owner's equity at a specific point in time rather than the sales and costs firgures during the reporting period.

Furthermore, she should opt for Income statement rather than the common-size income statement because the common-size income statement hardly illustrates any trend during the recent years/ reporting periods, instead, it is only shown each revenue and cost items as percentage of total sales in a specific period.

In the income statement, there should be enough information for the new CFO to find trends on revenues and costs (if any) because the revenue and cost items is detailed enough and at least it should be given the comparision between sales & costs of the reporting period versus the firgures of the previous reporting period.

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4 years ago

The beginning inventory of SoCal Wholesalers was $121,000, and the ending inventory is $116,500. What entries are needed at the

Sphinxa [80]

Answer and Explanation:

The journal entries that are required to adjust merchandise inventory is given below:

Income Summary $121,000

To Inventory $121,000

(Being eliminate Beginning inventory balance is recorded)

Inventory $116,500

To Income Summary $116,500

(Being the cost of ending inventory is recorded)

These two entries should be recorded for adjusting merchandise inventory

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3 years ago