Answer:
a. False
Explanation:
Corporate level strategies are undertaken by the top management formulating strategic business policies with a purpose of achievement of long term goals and objectives.
Such policies affect the organization as a whole. The purpose of corporate level strategies is to maximize profits over a period and ensure success.
Diversification strategy is aimed at adding operations to pre existing line of operations into different category of products and markets and explore new business ventures.
Hence, corporate level strategies are not limited to diversification strategy as the concept of corporate level strategy is much broader.
Answer:
(a) Earnings per share = Net income ÷ Number of shares
= $22,500,000 ÷ 6,500,000
= $3.46
Price-earnings ratio = Stock price ÷ Earnings per share
= $72 ÷ $3.46
= 20.81
(b) Earnings per share = Net income ÷ Number of shares
= $22,500,000 ÷ (6,500,000 + 650,000)
= $3.15
R = (M0 - S) ÷ (N + 1)
= ($72 - $66.50) ÷ (7 + 1)
= $0.69
where,
M0 = current market price of Walker common stock
S = selling price per share
N = seven rights is needed to buy one of the new shares
Ex-rights price = Rights-on price - Rights value
= $72 - $0.69
= $71.31
Price-earnings ratio = Stock price ÷ Earnings per share
= $71.31 ÷ $3.15
= 22.64
Answer:
Rice Co.
Journal Entries:
April 5:
Debit Inventory $28,000
Credit Accounts Payable (Jax Company) $28,000
To record the purchase of goods, terms 2/10, n/30.
April 6:
Debit Freight-in Expense $700
Credit Cash Account $700
To record the payment of freight costs for goods purchased from Jax Company.
April 7:
Debit Equipment $30,000
Credit Accounts Payable $30,000
To record the purchase of equipment on account.
April 8:
Debit Accounts Payable (Jax Company) $3,600
Credit Inventory $3,600
To record the return of goods to Jax Company.
April 15:
Debit Accounts Payable (Jax Company) $24,400
Credit Cash Discount $488
Credit Cash Account 23,912
To record the full settlement on account.
Explanation:
Rice Co's journal entries are made on a daily basis as transactions occur. They show the accounts to be debited and the ones to be credited in the general ledger. Journal entries are the initial records of transactions made by the company in its accounting system.
The journal entries are made as follows and t-accounts and Trial balance is made.
<h3 /><h3>What is Accounting?</h3>
Accounting is the calculation of debit and credit, this includes the finance calculations of a business. Accounting have five major accounts known as Capital, Income, expense, Liabilities and Assets.
A. DR Cash 14100
DR Furniture 5200
CR Capital 19300
B. DR Rent expense 1500
CR Cash 1500
C. DR Office Supplies 900
CR Accounts Payable 900
D. DR Salary Expense 1700
CR Cash 1700
E. DR Accounts Payable 700
CR Cash 700
F. DR Accrued Income 5900
CR Services 5900
G. DR Capital 6700
CR Cash 6700
T accounts are made by the name of a certain account and debiting or crediting the effecting account.
Trial Balance
Cash 4200
Furniture 5200
Capital 12600
Rent expense 1500
office supplies 900
Salary expense 1700
Accounts payable 200
Services (COGS) 5900
Accrued Income 5900
Learn more about Journals at brainly.com/question/26998490
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