How much did obama add to the national debt?

The Jones Company plans to issue preferred stock with a perpetual annual dividend of $5 per share and a par value of $30. If the

Sever21 [200]

Answer:

c) $25

Explanation:

The value of a preferred stock is the present value of the constant dividend payable for the foreseeable future discounted at the required rate of return

Price = Constant dividend/ required return

The constant dividend = Dividend rate × par value

Dividend as be given as $5 per share

requited return - 20%

So the price of the stock would be

Price = 5/0.2

= $25

7 0

3 years ago

Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and

Anuta_ua [19.1K]

Answer:

c. $ 95,000 $ 0

Explanation:

Calculation of cost of land acquired

For the purpose of recording of land acquired in the books of accounts, the accounting values of consideration paid shall be considered as per the generally accepted accounting principles as well as as per International accounting standard (IAS) - 16 'Property, plant and equipment'. Hence the land shall be recorded as per the following amounts:

Consideration paid in cash (A) = $ 5,000

Consideration in kind (land) (B) = $ 90,000 (Refer Note 1)

Total cost of new land (A+B) = $ 95,000

Note 1

Fair value is irrelevant for the purpose of capitalization of asset (IAS-16)

Calculation of Gain/loss on disposal of land

No gain/loss needs to be recorded as the new asset shall be recorded in terms of the book value of old asset (i.e. net impact is already taken into account during the exchange transaction)

5 0

3 years ago

Aside from low-cost strategy, describe other methods that businesses can use to differentiate their products.

Anettt [7]

Aside from low cost strategy, there are more other methods that will help business in differentiating their products.

· Exploring new markets – This where the market concentrates on their fellow contenders.

· Partnership with other firms – It is a way of teaming up with other organizations which will be of benefit for the products that is being sold by the company.

· Innovation – It is a way of asking higher price compared to other companies when new features of the product is being added as consumers will most likely want to buy something new and fresh.

· Propose amplified provision – Different services are being applied for the sake of consumers so that more consumers will be attracted to the product.

8 0

3 years ago

Riverbed Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts a

Arte-miy333 [17]

Answer:

A.

Dr Cash $891,540

Dr Warranty Expense $127,254

Cr Sales Revenue $891,540

Cr Warranty Liability $127,254

B. Current Liabilities

Warranty Liability $63,627

Long-term Debt

Warranty Liability $63,627

C. Dr Warranty Liability 61,300

Cr Inventory 21,400

Cr Salaries and Wages Payable 39,900

Explanation:

A. Preparation of the journal to Record any necessary journal entries in 2017.

Dr Cash $891,540

[ (381 × $2,340) = $891,540]

Dr Warranty Expense $127,254

Cr Sales Revenue $891,540

Cr Warranty Liability $127,254

(381 *[$142+ $192])

B. Calculation for What liability relative to these transactions would appear on the December 31, 2017,

Riverbed Corporation

Balance Sheet (Partial)

December 31, 2017

Current Liabilities

Warranty Liability $63,627

($127,254/2)

Long-term Debt

Warranty Liability $63,627

C. Preparation of the journal entry Record any necessary journal entries in 2018

Dr Warranty Liability 61,300

($21,400+$39,900)

Cr Inventory 21,400

Cr Salaries and Wages Payable 39,900

5 0

3 years ago

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net in

a_sh-v [17]

Answer:

The correct answer is Net cash= 96.100,00

Explanation:

Depreciation expenses must be added back to net income.

Also, Increase in accounts payable is added to net income

Gain on sale of land and Increase in merchandise inventory are subtracted from net income

So,

Indirect Method

Net income 86.300,00

Depreciation expense 13.000,00

Increase in accounts payable 7.150,00

Gain on sale of land (7.300,00)

Increase in merchandise inventory (3.050,00)

Net cash 96.100,00

6 0

3 years ago