Answer:
The Rubber Meets the Road has issued shares at discount to market price to its shareholders (Right Issue)
Explanation:
These tactics are used by the company who wants to defend itself from the acquirer because they think they will damage the company values, culture, restructure business processes and change in people who work and are part of the organization. In other words they think are a family and will loose each other and the associated benefits now they are enjoying so what they do is they upper management issues the rights to its existing shareholders at discount to market value.
The investment doesnot seems attractive as the benefit are no more if the acquirer pays extra dollars to buy the 50% shares which have been increased due to right issue. So the statement hostile takeover means the defending strategy of the firm that the acquirer wants to acquire its control by buying more than 50% shares.
Answer:
The ending balance in the retained earnings account on December 31, 2009 was $11,000
Explanation:
For computing the retained earnings balance on December 31, 2009, the following equation should be used which is shown below:
= Ending retained earnings + dividend paid - net income
= $31,000 + $16,000 - $36,000
= $11,000
Since we have to find out the beginning retained earning so we add the dividend amount and deduct the net income amount
If we find out the ending balance of December 31, 2010, than we add the net income and deduct the dividend amount.
Hence, the ending balance in the retained earnings account on December 31, 2009, was $11,000
The total goods available for sale for the period is computed as follows:
Inventory, beg (200 @ $10) ----------------------------------------$2,000
1st Purchase (350 @ $15) ---------------------------------------------5,250
2nd Purchase (450 @ $20) ------------------------------------------9,000
3rd Purchase (100 @ $25) -------------------------------------------2,500
Total Goods Available for Sale -----------------------------------$18,750
(a) In computing the Ending Inventory and Cost of Goods Sold using FIFO method:
Total Goods Available for Sale ---------------------------------- $18,750
Less: Ending Inventory* -------------------------------------------- 4,900
Cost of Goods Sold --------------------------------------------------$13,850
*Ending Inventory
Inventory, beg ---------------------------------------------------------- 200
Total Purchases -------------------------------------------------------- 900
Total Available Units ------------------------------------------------- 1,100
Less: Units Sold ------------------------------------------------------- 880
Inventory, end --------------------------------------------------------- 220
Cost of Ending Inventory
100 × $25 = $2,500
120 × $20 = 2,400
220 $4,900
(b) In computing the Ending Inventory and Cost of Goods Sold using LIFO method:
Total Goods Available for Sale ---------------------------------- $18,750
Less: Ending Inventory* -------------------------------------------- 2,300
Cost of Goods Sold --------------------------------------------------$16,450
*Ending Inventory
Inventory, beg ---------------------------------------------------------- 200
Total Purchases -------------------------------------------------------- 900
Total Available Units ------------------------------------------------- 1,100
Less: Units Sold ------------------------------------------------------- 880
Inventory, end --------------------------------------------------------- 220
Cost of Ending Inventory
100 × $20 = $2,000
120 × $15 = 300
220 $2,300
(c) The Gross Margin for FIFO and LIFO
FIFO LIFO
Sales (880 @ $40) ------------------------$35,200 -------------------$35,200
Cost of Goods Sold ---------------------- 13,850 -------------------- 16,450
Gross Margin --------------------------------$21,350 ------------------- $18,750
<span>Their complete inventory involves all three "locations" of goods: those in their warehouse, those in transit (i.e. those that simply had not arrived in time for the inventory) and those on consignment -- loaned to others, whose value still belongs to Bell Inc. Simple addition of these three together yields $980,000 worth of total goods in their possession.</span>
Answer:
Option (A) is correct.
Explanation:
Given that,
Amount withdraw by Pete Mills = $10,100
Mutual charges on amount withdrawn = 6%
Therefore, the dollar amount of the withdrawal charge;
= Amount withdraw by Pete Mills × Percent charges by mutual fund on withdrawal of fund
= $10,100 × 0.06
= $606.00
Hence, the correct answer is $606.00