Using a credit card is like borrowing money, while debit cards let you draw directly from your bank account
Answer:
The correct answer is d) Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.
Explanation:
Option D. represents two situations that perfectly describe the interest that the shareholders pursue: the maximization of the profits of the company where they have their resources invested.
The shareholder, on the other hand, is also an investor, since he contributes capital with a view to obtaining a dividend.
Its investment is said to be in equities, given that there is no contract through which the shareholder will receive fixed fees in return for his investment. Their remuneration is through two ways:
- Dividend
- Increase in the price of the company. This is produced by its good progress and its ability to generate future benefits, as well as by the increase in assets through past benefits.
Answer:
Please see answers below
Explanation:
1. Prepare an income statement for the year ended, December 31, 2021
Fightin' Blue Hems Corporation, Income statement for the year ended, December 31, 2021.
Details
$
Service revenue
500,000
Salaries expense
400,000)
Rent expense
20,000)
Depreciation expense
40,000)
Interest expense
5,000)
Earnings for the year
35,000
2. Prepare a statement of stockholder's equity for the year ended, 31, December, 2021
Fightin' Blue Hens Corporation statement of stockholder equity for the year ended , December 31, 2021.
Details
$
Common stock
300,000
Retained earnings
60,000
Earnings for the year
35,000
Stockholder equity
395,000
3. Prepare a classified balance sheet as at 31, December
Fightin' Blue Hens Corporation, classified balance sheet for the hear ends, December 31, 2021.
Details
$
Fixed assets
Equipment
400,000
Accumulated depreciation
135,000
Net fixed assets
265,000
Current assets
Cash
12,000
Accounts receivables
150,000
Prepaid rent
6,000
Supplies
30,000
Total current assets
198,000
Current liabilities
Accounts payable
($12,000)
Salaries payable
(11,000)
Interest payable
(5,000)
Working capital
170,000
Long term liabilities
Notes payable (due in two years)
(40,000)
Net total assets
395,000
Financed by;
Common stock
300,000
Retained earnings
60,000
Earnings for the year
35,000
Stockholder equity
395,000
Answer:
$406.07
Explanation:
Revenue for year 1 = $100
Profit = 20%
Growth rate of revenue, = 15% per year = 0.15
Now,
year 1 is the base year thus, take it as n = 0
Revenue for the year = $100 × ( 1 + r )ⁿ
Profit = 20% of [$100 × ( 1 + r )ⁿ]
Year n Revenue Profit
1 0 $100( 1 + r )⁰ $20
2 1 $100( 1 + r )¹ $23
3 2 $100( 1 + r )² $26.45
4 3 $100( 1 + r )³ $30.4175
5 4 $100( 1 + r )⁴ $34.98
6 5 $100( 1 + r )⁵ $40.227
7 6 $100( 1 + r )⁶ $46.261
8 7 $100( 1 + r )⁷ $53.2004
9 8 $100( 1 + r )⁸ $61.1804
10 9 $100( 1 + r )⁹ $70.357
Hence,
Total profit for the year 1 - 10 = $406.07
