All categories

4 years ago

Poodle Corporation was organized on January 3, 2011. The firm was authorized to issue 100,000

Business

1 answer:

Zanzabum4 years ago

3 0

Answer:

C. $370,000

Explanation:

Poodle Corporation was organized on January 3, 2011. The firm was authorized to issue 100,000 shares of $5 par common stock.

During 2011, Poodle had the following transactions relating to shareholders' equity:

Issued 30,000 shares of common stock at $7 per share.

Issued 20,000 shares of common stock at $8 per share.

Reported a net income of $100,000.

Paid dividends of $50,000.

Therefore total Paid-in capital at the end of 2011 is derived by :

(30,000 shares x $7) + (20,000 x $8) = $370,000

Paid - In capital refers to the funds that stockholders have invested through the purchase of stock from the issuing company, including premiums and not just par value.

You might be interested in

Current operating income for Bay Area Cycles Co. is $74,000. Selling price per unit is $120, the contribution margin ratio is 30

NeX [460]

Answer:

1. 6,944 units and $833,333.33

2. $1,080,000 and 22.83%

Explanation:

The computations are shown below:

1. Break-even point in units

= (Fixed expenses ) ÷ (Contribution margin per unit)

where,

Contribution margin per unit = Selling price per unit × contribution margin ratio

= $250,000 ÷ $36

= 6,944 units

Break-even point in sales

= (Fixed expenses ) ÷ (Contribution margin ratio)

= $250,000 ÷ 30%

= $833,333.33

2. For margin of safety and margin of safety ratio:

Margin of safety = Expected sales - break even sales

where,

Expected sales = (Operating income + fixed expense) ÷ (contribution margin ratio)

= ($74,000 + $250,000)

= ($324,000) ÷ (30%)

= $1,080,000

So, the margin of safety would be

= $1,080,000 - $833,333.33

= $246,667

Margin of safety ratio = Margin of safety ÷ total sales

= $246,667 ÷ $1,080,000

= 22.83%

3 0

3 years ago

2 Study Guide-000 N

Likurg_2 [28]

Answer:

thank you

Explanation:

Are we supposed to apply for those courses

5 0

2 years ago

An important part of obtaining venture capital funding is going through ________ , which refers to the process of investigating

geniusboy [140]

Answer:

Due-diligence

Explanation:

Due diligence is the process of inspection by the venture capitalist to determine whether to invest in any company or not. In due diligence they gauge the potential of success of company and potential profitability. Due diligence process involves asking question to obtain important information to verification of feasibility of business opportunity. The question is primarily involved around date from financial reports, legal aspects, any intellectual property possess, the assets and liability of company.

Since given in question key claims of business plan is being verified, therefore due diligence process is being followed in venture capital funding

5 0

3 years ago

Issued a cheque of rs. 39000 to Saurya stores in full settlement. <br>journal entry

Semmy [17]

Answer:

When issuing a check to a creditor as is being done here, you need to debit the creditors account (Accounts Payable) to show that you are paying off the debt.

You also need to credit cash because a credit will show that cash was used to pay for something and so has reduced.

Date Account Title Debit Credit

XX-XX-XXX Accounts Payable - Saurya Stores Rs. 39,000

Cash Rs. 39,000

4 0

3 years ago

A cash equivalent is: Multiple Choice Generally within 3 years of its maturity date. Close to its maturity date but its market v

11111nata11111 [884]

Answer:

An investment readily convertible to a known amount of cash

Explanation:

Cash equivalents are items usually recognized in the balance sheet along with cash (then names Cash and cash equivalent) that are readily or easily convertible to cash at an amount that is measurable.

Examples of cash equivalents include commercial papers, bank certificate of deposit, treasury bills usually with a tenor of 3 months or less etc.

Cash equivalents are assets and help improve the company's liquidity.

6 0

3 years ago