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4 years ago

Why should an auditor make decisions in the public interest rather than in the interest of management or current shareholders??

1 answer:

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Because their duty is to the public. They're trusted to report any wrong doings they find when auditing a corporation. They have to follow government guidelines and laws that are in place.

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Blue Hamster Manufacturing Inc. just reported earnings after tax (also called net income) of $8,000,000 and a current stock pric

Yuki888 [10]

Explanation:

Current Year Price earning ratio = Net Income ÷ Number of shares

= ($17.50 × 5,500,000) ÷ $8,000,000

= 96,250,000 ÷ $8,000,000

= 12.03

Next year earnings = $8,000,000 × (1 + 25%)

= $10,000,000

Share price next year = ( $10,000,000 × 12.03) ÷ 7,000,000

= 120,300,000 ÷ 7,000,000

= 17.1857 per share

The correct answer is 17.1857 per share. Therefore, the option is not available.

Market to book ratio = market value ÷ book value

= (7,000,000 × $47.12) ÷ $35,424,400

= $329,840,000 ÷ $35,424,400

= 9.31

Negative PE ratio is likely due to the company's Negative Earnings. Therefore yes it is possible.

b. Companies with high research and development (R&D) expenses tend to have high P/E ratios.

4 0

4 years ago

A company had beginning inventories as follows: Direct Materials, $300; Work-in-Process, $500; Finished Goods, $700. It had endi

mojhsa [17]

Answer:

Cost of Goods Sold is $4,200.

Explanation:

Cost of Goods Sold

Beginning Direct Materials $300

+ Material Purchases $1,400

- Ending Direct Materials $400

Total material Cost $1,300

Direct Labor $1,500

Manufacturing Overhead $1,600

Total manufacturing Cost $4,400

+ Beginning Work-in-Process $500

- Ending Work-in-Process $600

Cost of Goods Manufactured $4,300

+ Beginning Finished Goods, $700

- Ending Finished Goods, $800

Cot of Goods Sold $4,200

8 0

4 years ago

Fuschia company's contribution margin per unit is $12. total fixed costs are $84,000. what is fuschia's break-even point in unit

Whitepunk [10]

700units is fuschia's break-even point in units.

BEP(units) = fixed cost/contribution margin per unit

84000/12 = 700units

Fixed costs are costs that do not change whilst sales or manufacturing volumes boom or lower. this is because they may be now not at once associated with manufacturing a product or turning in a provider. As a result, fixed fees are taken into consideration to be indirect costs.

Fixed costs tend to be expenses that are based on time rather than the quantity produced or sold by your business. Examples of fixed prices are rent and rent costs, salaries, utility payments, insurance, and mortgage payments. some kinds of taxes, like enterprise licenses, are also fixed costs.

Variable costs change primarily based on the quantity of output produced. Variable costs may encompass exertions, commissions, and uncooked substances. Fixed costs remain the same regardless of manufacturing output. fixed prices may additionally include lease and rental bills, coverage, and interest bills.

Learn more about break-even point here: brainly.com/question/9212451

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8 0

1 year ago

The disposal of a business segment is reported as discontinued operations. True or false?

zheka24 [161]

True, When the businesses decide not to carry on their operations further it will be reported as Discontinued operations and is shown in extraordinary items.

Explanation:

The disposal of business segment is caused due to some major change or shift that leads to financial dis balance and ultimately leads to the shutting down of the operations and so it will be reported in the discontinued operations. The business segment when disposed of or sold it will be reported as discontinued operations.

6 0

4 years ago

Land was acquired for $200,000 in exchange for common stock, par $200,000, during the year; all equipment purchased was for cash

diamong [38]

Answer:

Option (c) is correct.

Explanation:

Net cash provided by operating activities:

= Net income + Depreciation + loss on sale of Equipment + Decrease in prepaid expense + Increase in account payable - Increase in account receivable - increase in inventory - Decrease in accrued expenses

= $132,000 + 44,000 + 8,000 + 60,000 + 52,000 - 60,000 - 100,000 - 24,000

= $112,000

Note:

The balance sheet is missing in this question, so I attached the balance sheet with the answer.

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3 years ago