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3 years ago

Korte Company reported the following information for 2014:

Business

1 answer:

sergejj [24]3 years ago

4 0

Answer: For 2014, Korte would report comprehensive income of $341,000.

Explanation:

Korte Company

Comprehensive income statement for 2014 (extract)

Sales revenue $1,500,000

Cost of goods sold (1,050,000)

Gross profit 450,000

Operating expenses (165,000)

<em>Other income:</em>

Unrealised gain on AFS securities 50,000

Dividends received 6,000

Comprehensive income $341,000

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In 2017, Coronado Industries, issued for $103 per share, 95000 shares of $100 par value convertible preferred stock. One share o

zloy xaker [14]

Answer:

$4,085,000

Explanation:

Given that,

Coronado Industries, issued for $103 per share, 95000 shares of $100 par value convertible preferred stock.

1 share of preferred stock = 3 shares of common stock ($20 par value)

Additional paid in capital:

= Preferred stock - Common stock

= [95,000 shares × $103] - [(95,000 shares × 3 shares) × $20]

= $9,785,000 - (285,000 shares × $20)

= $9,785,000 - $5,700,000

= $4,085,000

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4 years ago

If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then A. the firm

MariettaO [177]

Answer:

C. decreasing output would increase the firm's profit.

Explanation:

The marginal concept explain the benefit or the cost that a company or firm gets of produce and additional unit of their product. In this case the marginal costs exceeds the marginal revenue, It means that the actual level of revenue isn't producing the optimum profit that could reach if the company decrease the output, for example

Marginal Cost= $1.20

Marginal revenue =$1

Difference = $1 - $1.20

= -$0.20

It means that the revenue of the firm increase but not at the same level that the marginal cost, that in this case is higher, it means that every additional unit affects negative the profitability of the company.

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4 years ago

Suppose a company has a unique dividend policy. The firm has expects to pay a dividend of $3.45 in the next year. They anticipat

NemiM [27]

Answer:

A. 16.71%

Explanation:

Use dividend discount model (DDM) to solve this question.

Formula for finding the required return of a stock is;

r = $\frac{D1}{P0} +g$

where P0 = Current price = $17.50

D1 = Next year's dividend = $3.45

r= required return = ?

g= growth rate = -3% or -0.03 as a decimal (negative sign is because dividend is expected to decrease)

r = $\frac{3.45}{17.50} -0.03\\ \\ =0.19714 - 0.03\\ \\ =0.16714$

As a percentage , it becomes 16.71%

7 0

3 years ago

You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound

Maslowich

Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

We need to solve for time in an ordinary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $15,000.00

rate 0.004 (4.8% divide by 12 month)

PV $3,000,000

time n

$15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\$

we clear for n as much as we can and solve

$(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}$

$(1+0.004)^{-n}= 0.20$

now we use logarithmic properties to solve for n:

$-n= \frac{log0.2}{log(1+0.004)$

-403.16

this will be a value in months so we divide by 12 to get it annually

403/12 = 33,5833

we convert the residual to months:

0.5833 x 12 = 6.996 = 7 months

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3 years ago

If a fraudster manipulates the assumptions used to calculate depreciation charges in order to increase earnings to a desired fig

liubo4ka [24]

Answer:

Playing the accounting system

Explanation:

Playing the accounting system means fraudsters introduces false information or influences the way the accounting system operates so that results will give higher amounts than one would normally get.

For example creating fictitious customers and assigning sales figures to them, aimed at inflating sales.

In the given instance the fraudster manipulates the way the accounting system calculates depreciation in order to gain from the inflated figures.

8 0

3 years ago