Answer:
Issued shares =5000
Outstanding shares = 4700
Explanation:
Jan-1 Issued shares = 2000 shares
During year 3000 shares were issued.
a.) Outstanding shares =?
we know that Outstanding shares = issued stock -repurchased shares- treasury stock
= 2000+3000-500+200
= 4700 shares.
b.) Shares of common stock issued=?
Number of issued shares = 2000+3000 = 5000 shares.
Number of outstanding shares will always be less than issued shares.
I think it’s true
(Not sure)
Answer:
C. $12,500
Explanation:
Please keep in mind that, annual depreciation expense is caluclated as below:
Depreciation expenses = (Original cost - Salvage value)/Expected useful life
Putting all the number together, we have:
Depreciation expenses = (90,000 - 15,000)/6 = 12,500.
So the correct answer is C. $12,500
Answer:
The correct answer is: Inventories.
Explanation:
Inventories are real and concrete assets, that is movable and immovable property. These form the commercial flow of a person or a company. These goods are for sale, hence the commercial nature, or for the consumption of goods and / or services. Inventories are made in a certain period of time.
If a company is commercial, its livelihood is always buying and selling, that is, the exchange of goods and services. With the inventory, the company has an exhaustive control of merchandise during the commercial period, and at the end of it it has the “final balance”, that balance is comparable with that of other years and serves to draw conclusions and from there take certain actions depending of the result. When the goods are being counted for a certain economic period, it is necessary that they appear in the “Current Assets” group, this means that it is all merchandise at the cost that is in the hands of a company.
The concept of inventory has to do with accounting, which is a system for controlling and recording profits (income and expenses), as well as economic operations, in this case carried out by a company or association, it reflects the financial movements that they make.
Answer:
The change in net operating income after the changes by $14,200
Explanation:
For computing the change in net operating income, first, we have to compute the contribution per unit which is shown below:
Contribution per unit = Selling per unit - variable cost per unit
= $190 per unit - $76 per unit
= $114 per unit
where,
The selling per unit = (Sales revenue ÷ number of units)
= ($190,000 ÷ 1,000 units)
= $190 per unit
The variable cost per unit = (variable cost ÷ number of units)
= ($76,000 ÷ 1,000 units)
= $76 per unit
Now the change in operating income equals to
= (increased sales units × contribution per unit) - advertising cost
= (300 units × $114 per unit) - $20,000
= $34,200 -$20,000
= $14,200 increase
