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3 years ago

The distribution of stock rights to existing common stockholders will increase paid-in capital at the

Business

1 answer:

likoan [24]3 years ago

4 0

Answer:

Date of issuance of rights - No

Date of exercise of the rights - Yes

Explanation:

The distribution of stock rights to existing common stockholders will increase paid-in capital at the date of exercise of the rights.

Actually, Paid in capital increases whenever funds are received. This means on the day the rights are exercised and not when the rights are issued.

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Dairy Days Ice Cream sells ice cream cones for $5 per customer. Variable costs are $2 per cone. Fixed costs are $2100 per mon

qwelly [4]

Answer:

0.6 or 60%

Explanation:

The contribution margin ratio is calculated by the formula below.

Contribution margin ratio = contribution margin

sales revenue

= For Dairy D's

Contribution margin per unit = sales - variable expenses

=$5-$2

= $3 per unit

Contribution margin = Contribution margin per unit

sale price per unit

=3/5

=0.6 or 60%

4 0

3 years ago

A company purchased factory equipment on April 1, 2022 for $128,000. It is esti salvage value at the end of its 10-year useful l

just olya [345]

Answer:

Depreciation expense= $9,600

Explanation:

Giving the following information:

A company purchased factory equipment on April 1, 2022 for $128,000. 10-year useful life.

We weren't provided with the salvage value.

First, we need to calculate the annual depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= 128,000/10= 12,800

Now, for 9 months:

Depreciation expense= (12,800/12)*9= $9,600

8 0

3 years ago

Farrell wants to retire in six years. To have sufficient assets to fund retirement, Farrell needs to accumulate an additional $4

Mademuasel [1]

Answer:

$73,070.5

Explanation:

Inflation erodes the value of money. It makes more quantity of money to required to buy the same basket of food and services in the future.

With inflation, to calculate the the quantity of Dollars needed in n years time, we use the formula;

Inflated amount = h × (1 + f)^n

h= amount required today, f - inflation rate, n- number of years

So if Farrell needs $400,000 in 6 years time in real terms, with an inflation of 5% per year, he would need to have a quantity of money equal to

1.05^6 × 400,000 = $536,038.3.

To provide for $536,038.3 in 6 years time, he would need to contribute into a sinking fund on a yearly basis, an equal amount denoted as "A" in the formula below:

FV = A × ((1+r)^n - 1)/r

FV - 536,038.3, r - 8%, n = 6

536,038.3 = A × ((1+0.08 )^(6) - 1)/0.08)

536, 038.3 = A × 7.3359

536,038.3/7.3359 = A

$73,070.5 = A

Farrell should invest at the end of every year

$73,070.5

7 0

3 years ago

Please I need help.....

Harrizon [31]

already answered this question for you in a previous post. Please do not post the same question 6 times in the thread.

5 0

3 years ago

Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year

aalyn [17]

Answer:

Pension Expense = $29,200,000

Explanation:

As per the data given in the question,

Service cost = $25,000,000

Interest cost = $15,000,000

Expected return on the plan assets = $10,800,000

( 12% × $90,000,000)

Pension Expense = $29,200,000

($25,000,000 + $15,000,000 - $10,800,000)

Journal entries to record the pension expense :

Pension expense A/c Dr. $29,200,000

To accrued pension cost A/c $6,200,000

To Cash A/c $23,000,000

($29,200,000 - $6,200,000)

3 0

3 years ago