If all families receive exactly the same income the lorenz curve would appear as

Oregon Outfitters issues 1,300 shares of $1 par value common stock at $21 per share. Later in the year, the company decides to r

Molodets [167]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $27,300

(1,300 × $21)

To Common Stock $1,300

To Paid in capital in excess of par-Common Stock $26,000

(Being issue of common stock is recorded)

2.Treasury stock Dr, $5,000

(250 × $20)

To Cash $5,000

(Being repurchase of treasury stock is recorded)

3. Cash Dr, $6,750

(250 × $27)

To Treasury stock $5,000

(250 × $20)

To Paid in capital-Treasury stock $1,750

(Being reissue of treasury stock is recorded)

3 0

2 years ago

A manufacturing company producing medical devices reported $59 million in sales over the last year. At the end of the same year,

kaheart [24]

Answer:

The inventory TO is 3.6875

Explanation:

$\frac{Sales}{Average Inventory} = $Inventory Turnover$

where:

$$$Average Inventory=(Beginning Inventory + Ending Inventory)/2$

Considering there is not sufficient information to calculate the begining inventory <u>we are going to work only with the ending inventory </u>so:

$\frac{59,000,000}{16,000,000} = 3.6875$

The inventory TO is 3.6875 This means the company sales their inventory almost 4 times per year.

4 0

3 years ago

In a deposits-only monetary system (people hold no currency) with a 5% required reserve ratio, a bank deposit of $1,000 will inc

liraira [26]

The reserve ratio is the portion of the money of the depositor that should be available in cash in the bank. This amount should only be in the bank and not used for all other purposes. Hence, the balance money can be used for the bank operations, increasing the supply.

In this item, we are given that the reserve ratio is only 5%. This means that, 95% of the money can be used by the bank for its operation. This amount can be calculated by multiplying the amount deposited by the decimal equivalent of 95%. That is,
= ($1000)(0.95)
= $950

Therefore, the money supply will increase by $950.

5 0

3 years ago

Blazer Sports Store is preparing to pay its quarterly dividend of $7.75 a share this quarter. The stock closed at $105.64 a shar

Lana71 [14]

Answer:

$99.3625

Explanation:

The computation of ex-dividend stock price is shown below:-

Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)

= $105.64 - $7.75 × (1 - 19%)

= $105.64 - $7.75 × 0.81

= $105.64 - 6.2775

= $99.3625

Therefore for computing the ex-dividend stock price we simply applied the above formula.

3 0

3 years ago

The records of Pippins, Inc., included the following information: Net sales $ 1,000,000 Gross margin 475,000 Interest expense 50

Lelu [443]

Answer:

Times interest earned (TIE) = 7.4 times

Explanation:

The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,

Times Interest Earned (TIE) = EBIT / Total Interest expense

Where,

EBIT is the earnings of the company before interest and tax

To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:

EBIT = Net income + tax + interest expense

EBIT = 240000 + 80000 + 50000

EBIT = $370000

Times interest earned (TIE) = 370000 / 50000

Times interest earned (TIE) = 7.4 times

6 0

3 years ago