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aleksklad [387]
3 years ago
7

Pronghorn Corporation began operations on January 1, 2020 when $236,000 was invested by shareholders of the company. On March 1,

2020, Pronghorn purchased for cash $125,000 of debt securities that it classified as available-for-sale. During the year, the company received cash interest of $7,100 on these securities. In addition, the company has an unrealized holding loss on these securities of $13,500 net of tax. Determine the following amounts for 2020: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2020). (Enter negative amounts using either a negative sign preceding the number e.g. -15 or parentheses e.g. (15).)
Business
1 answer:
Over [174]3 years ago
3 0

Answer:

a. $7,100

b. -$6,400

c. -$13,500

d. -$13,500

Explanation:

The computation is shown below:-

a. Net income

Net income = Cash interest

= $7,100

b. Comprehensive Income = Net Income - unrealized holding loss

= $7,100 - $13,500

= -$6,400

c. Other Comprehensive Income = unrealized holding loss

= -$13,500

d. Accumulated other comprehensive income:

Ending Balance of other comprehensive income = Beginning Balance + During this year

= $0 + (-$13,500)

= -$13,500

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Answer:

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Explanation:

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7 0
3 years ago
Read 2 more answers
Uber plans to sell shares of common stock to raise capital funds. They estimate that each share of common stock will sell for $1
blsea [12.9K]

Answer:

cost of capital of common stock = 13.38 %

Explanation:

given data

common stock sell = $145

fee charge= 5%

face value = $145 per share

dividend = 7%

growth rate = 8%

to find out

Uber cost of capital of common stock

solution

we get here cost of capital of  common stock that is express as

cost of capital of common stock = \frac{D1}{Po-f} + g    ....................1

here D1 is dividend at end year and Po is today price and f is flotation rate and g is growth rate

so we get here

cost of capital of common stock = \frac{113*0.05}{113-113*0.07} + 0.08    

cost of capital of common stock = 0.133763

cost of capital of common stock = 13.38 %

4 0
3 years ago
Walmart, Costco, and Southwest Airlines serve customers who want reliable, good-quality products or services that are also reaso
maks197457 [2]

Answer:

A) operational excellence

Explanation:

Operational excellence is a business strategy that consists in the constant improvement of all aspects of the organization in order to maintain high standars in every possible way. The idea is to be better than the competition in the long-term.

Walmart, Costco, and Southwest Airlines are engaging in operational excellence when they manage to offer products and services that have reasonable price, while being reliable and high-quality at the same time. The combination of low price, and high quality, is very hard to achieve, and it's a sign that a company is following operational excellence.

6 0
4 years ago
Williamson Industries has $6 billion in sales and $1.1 billion in fixed assets. Currently, the company's fixed assets are operat
erma4kov [3.2K]

Answer:

$6,666,666.67

Explanation:

The computation of the level of sales operating at full capacity is as follows

= Sales ÷ Operating capacity percentage

where,

Sales is $6,000,000

And, the operating capacity percentage is 90%

Now placing these values to the above formula

So, the level of sales operating at full capacity is

= $6,000,000 ÷ 90%

= $6,666,666.67

Hence, the level of sales is $6,666,666.67

7 0
3 years ago
Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
Shalnov [3]

Answer:

Avoidable interest is $272,064.

Explanation:

Compute the interest on new notes payable, using the equation as shown below:

Interest = Principalof 13% note payable × Rate of interest

=$1,059,300×13%

=$137,709

​  

Hence, the interest of new notes payable is $137,709.

Compute the interest of outstanding notes payable using the equation as follows:

Interest = Outstanding principal × Weighted average interest rate

=$1,268,700×10.59%

=$134,355

​    

Hence, the interest of outstanding principal which is needed to be considered for the calculation of avoidable interest is $134,355

Avoidable interest is $272,064.

8 0
3 years ago
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