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3 years ago

When a firm makes annual deposits to repay bondholders at maturity, it is using a?

1 answer:

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Utilizing the sinking fund. It is a methods for reimbursing reserves acquired through a security issue through intermittent installments to a trustee who resigns some portion of the issue by buying the securities in the open market. Instead of the backer reimbursing the whole central of a security issue on the development date, another organization purchases back a bit of the issue every year and more often than not at a settled standard esteem or at the present market estimation of the securities, whichever is less.

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During 2021, Farewell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. Th

grigory [225]

Answer:

a) c. $4.34

b) b. $4.10

Explanation:

a) Find Farewell's diluted earnings per share for 2021.

Use the formula below:

Diluted EPS = (Net income after tax - preferred dividend) / diluted common stock

$= \frac{2,500,000 - (50,000*100*0.06)}{500,000+(200,000 - ((29*10,000)/30))}$

$= \frac{2,500,000 - 300,000}{500,000 + (200,000 - 193,333)}$

$= \frac{220,000}{506,667}$

$= 4.34$

Diluted EPS = $4.34 per share

b) stock options = 5,000

Value in current shares = 500,000/12 = $4,167

Diluted shares = 5000 - 4167 = 833

Use the formula below to find the diluted earnings per share:

Diluted EPS = Net income/share outstanding

$= \frac{269,915}{50,000 +(20,000-5,000) + 833)}$

$= \frac{269,915}{50,000 + 15,000 + 833}$

$= \frac{269,915}{65,833}$

$= 4.10$

Diluted EPS = $4.10 per share

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3 years ago

Dell Computer's primary consumer business takes orders from customers for specific configurations of desktop and laptop computer

irina1246 [14]

Answer:

Assemble to order

Explanation:

The reason is that the customer places the order and all Dell does is just assemble the product and deliver it to its customers. Dell is using just in time mechanism and has all of its chips manufacturing, LED manufacturing, etc production facilities interconnected. Even its suppliers are close to its production sites. This enables Dell to produce products that the customer is desiring. So assembling products by just after taking the customer orders is "assemble to order mechanism".

8 0

3 years ago

The _____ is determined by the number of separate items within the same category. it is typically reflected in the number of s

sdas [7]

The answer is product line length
The product line length will determine the variety of choice available for customers when they're selecting the products from the company.
Larger product line length means that the company could serve a more diverse group of consumer base

6 0

3 years ago

Gabriel Company views share buybacks as treasury stock. In its first treasury stock transaction, Gabriel purchased treasury stoc

denis23 [38]

Answer:

b. decrease no effect

Explanation:

When the treasury stock is repurchased and at a premium. That is the price more than the par value, the excess is debited to the additional paid in capital account as this is the account used to fund the additional amount required to pay the differential.

Retained earnings on the other hand are unaffected by this transaction as long as the company has enough funds in the paid in capital account to complete the transaction.

Total paid in capital will decrease

Retained earnings will have no effect

Hope that helps.

5 0

3 years ago

Which of the following statements about the W-2 form is TRUE?

ohaa [14]

Answer:

I believe it it the second option.

Explanation:

8 0

3 years ago