Answer:
$1,305,600
Explanation:
Date of acquisition = Jan, 1 2016
Cost of purchase = $1,904,000
Initial useful life - 15 years
Initial amortization - 1904000/14
= $126,933
Date of review of amortization policy -2019
Accumulated amortization before 2019 -126,933.33*3=380800
Remaining useful years at December 2019 7
Amortization in 2019 =1904000-380800/7 =217,600
Carrying value at December 2019 = 1904000 - (380800 +217600) =1305600 Please note that change in amortization policy can only be applied progressively and not retrospectively
<span>This long term care facility purchases at least 85% of its
food and supplies from one distributor and it’s an example of prime vending. A
prime vending is a type of purchasing that has gained acceptance and popularity
among restaurant and non-commercial buyers. It is also a service which people
or the workers do.</span>
Answer:
$11.60
Explanation:
In ascertaining the parity price of the common stock, we need to ascertain the conversion ratio which is the par price of the preferred stock divided by the convertible price
The par value of the preferred stock=$100(since call price is $110)
convertible price=$10
conversion ratio=$100/$10=10
The parity price is the current market price of the preferred stock divided by the conversion ratio
Parity price=$116/10
Parity price=$11.60
Answer:
5) everyday low
Explanation:
An everyday low pricing policy (or strategy) refers to simply selling your products at a cheaper price than your competitors.
For example, bargain stores usually sell their products at a lower cost than the competition, Walmart, Target and Kmart are supposed to be bargain or discount stores. Another common type of retail store that uses this pricing strategy are outlet stores, specially clothing outlet stores.
In such a case Shawn's company cannot and should not give out a dividend.
Since the company has just raised money, is growing and profitable and it is becoming hard to keep up with demand, this is the best time for the company to reinvest its profits to:
1. Hire more people/Buy more product
2. Improve processes
3. Use the profits to invest in R&D
4. Use the profits to invest in marketing and promotion
5. Invest in providing better customer service
So no dividend should be given since it can hamper the growth of a young company. The money should be used to grow the company for now and in the future all shareholders can enjoy good dividends.
