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3 years ago

An analysis of stockholders' equity of Hahn Corporation as of January 1, 2010, is as follows:

Business

1 answer:

charle [14.2K]3 years ago

6 0

Answer:

Additional paid-in capital is $904,200

Explanation:

Number of shares, issued and outstanding = 93,000 shares

Acquired 2,460 shares of its stock for $75,000.

Sold 2,000 treasury shares at $35 per share.

Sold the remaining 460 treasury shares at $20 per share.

i) Acquired 2,460 shares of its stock for $75,000.

= Treasury Stock Dr $75,000

ii) Sold 2,000 treasury shares at $35 per share.

Treasury Stock (2,000 × $35) = Dr $70,000

iii) Sold the remaining treasury shares at $20 per share.

Treasury Stock (460 × $20) = Dr $9,200

Total Treasury Stock = $75,000 - $70,000 - $9,200

= ($4,200)

Paid in Cap-tresury stock= 10,000-5000=5000

Additional Paid in capital = Paid in Capital - treasury stock

= 900,000 + 4,200 = $904,200

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"A mutual fund manager of a "high technology" fund feels that the market for this sector will remain flat in the next coming mon

qaws [65]

Answer: C. narrow-based calls

Explanation:

Narrow based calls would include calls from one industry. The mutual fund is an "High technology" firm which means that it is a narrow based fund for instance as it is interested only in one industry being the High Tech industry.

The manager should invest in Narrow based calls that focus on the sector if he anticipates that the market will remain flat for the sector. Narrow based Calls are more volatile because they are specific and with the volatility comes higher premiums to be charged.

Should he wish to make income against the portfolio, he should sell these knowing that the options will not be called as the market will remain flat.

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3 years ago

Assume that the reserve requirement is 10%. All other things being equal, will the money supply expand MORE if the Fed buys $1,0

Strike441 [17]

Solution:

The reserve ratio is 10%.

Money multiplier = $\frac{1}{reserve requirement }$ = $\frac{1}{0.10}$ = 10.

So, the money multiplier increases by 10.

Money supply = amount x money multiplier = 1,000 x 10 = 10000

Therefore, because any certain items are equivalent, the rise in the currency supply is 10000 dollars.

When the FED sells 1,000 million worth of debt, this would further increase the monetary market, as the investments are fresh funds and the income from the bank is now used in the money supply.

8 0

3 years ago

Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $89,000. However, the bu

gogolik [260]

Answer:

The correct option is D,$42,000

Explanation:

The balance on Maxwell capital account=market value of building contributed less the mortgage on the building

market value of the building is $89,000

Mortgage on the building is $47,000

balance on Maxwell capital account=$89,000-$47,000

balance on Maxwell capital account=$42000

The correct option is D.

Care must taken so that one does include the cash of $38,000 contributed by Smart in Maxwell's capital account balance calculation,otherwise one would have concluded that option E,$80,000($42,000+$38,000)

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3 years ago

Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union P

erma4kov [3.2K]

Answer and Explanation:

The computation of the asset turnover for all three companies is as follows:

<u>Particulars YRC UNP CH </u>

Sales 4697500 19941000 13144413

Divided by

Average

total assets 1824700 55159000 3436058

Assets turnover 2.6 0.4 3.8

4 0

2 years ago

Explain how the following event would affect the cost curves A company's primary supplier of resources implements a 3 percent pr

Alenkasestr [34]

Answer:

Marginal cost, average variable cost, and average total cost will increase. Average fixed cost will not change.

Explanation:

Marginal Cost is the change in total cost as a result of producing one extra unit of output.

Variable cost is cost that varies with output level. Average variable cost = variable cost / quantity produced

Fixed cost is cost that doesn't vary with the level of output produced. Average fixed cost = Fixed cost / quantity produced.

Total cost is the sum of fixed and variable cost. average total cost is total cost / quantity produced.

If the price of supplies increase, the cost of production increases and average total cost, average variable cost and marginal cost would increase.

Fixed cost would remain the same.

I hope my answer helps you

5 0

3 years ago