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3 years ago

Repurchasing shares near year-end will increase a firm's return on equity (ROE). Select one: True False . g

Business

1 answer:

Effectus [21]3 years ago

6 0

Answer:

True

Explanation:

Return on equity calculated by dividing net income with total outstanding shares. When you repurchase shares total outstanding shares are reduced by the quantity purchased. Assuming the net income is constant the Return on equity will be higher as now net income is being divided by the lesser number of shares. So this is a true statement.

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A leftward shift of the market demand curve for hdtvs, ceteris paribus, causes equilibrium price to

s2008m [1.1K]

Decrease and the quantity to decrease

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3 years ago

Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses

Bogdan [553]

Answer:

1. Please find it attached.

If both of them don't get lawyers they will each make half of the $5 million being $2.5 million a piece.

If one side hires a lawyer and the other doesn't, the side with the lawyer will win 0.9 of $5 million which is $4,500,000. However they would have paid the lawyer $200,000 so that payout drops to $4,500,000. The other would make 0.1 which is $500,000.

If they both get a lawyer they will each get half which is $2,500,000 but they would both have paid their lawyers $200,000 a piece so the net payout would be $2,300,000.

2. The Nash Equilibrium is the alternative that it would not serve either party to deviate from as it serves them both well. The Nash Equilibriums would be If both don't get a lawyer or if both get a lawyer.

3. Yes they would because without lawyers they would make more money as they would not have to pay the $200,000 in fees.

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3 years ago

Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,660. Six months’ of the one-ye

PIT_PIT [208]

Question Completion:

Record the adjusting entries.

Answer:

Adjusting Journal Entries:

Debit Depreciation Expense - Mountain Bikes $6,660

Credit Accumulated Depreciation - Mountain Bikes $6,660

To record depreciation expense for the period.

Debit Insurance Expense $

Credit Prepaid Insurance $

To record the insurance expense for the period.

Debit Rental Expense $

Credit Prepaid Rental $

To record the rental expense for the period.

Debit Office Supplies Expense $700

Credit Office Supplies $700

To record office supplies expense for the period.

Debit Interest Expense $

Credit Interest Expense Payable $

To record interest expense on the $44,000 loan.

Debit Racing Supplies Expense $1,990

Credit Racing Supplies $1,990

To record racing supplies expense for the period.

Debit Income Tax Expense $13,900

Credit Income Tax Payable $13,900

To record income tax expense payable.

Explanation:

Adjusting journal entries are recorded in order to present elements of financial statements based on the accrual basis and not whether cash was paid or received.

In this question, some data were not provided. This is why some figures were not disclosed for Insurance Expense, Rental Expense, and Interest Expense. But, the accounting treatments remain valid. Only the figures are missing.

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3 years ago

Martinez, Inc. reported net income of $2.5 million in 2007. Depreciation for the year was $160,000, accounts receivable decrease

n200080 [17]

Answer:

$2,730,000

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $2,500,000

Adjustment made:

Add : Depreciation expense $160,000

Add: Decrease in accounts receivable $350,000

Less: Decrease in accounts payable -$280,000

Total of Adjustments $230,000

Net Cash flow from Operating activities $2,730,000

8 0

3 years ago

Valiant Petro products refines crude oil to produce gasoline and kerosene. Joint costs incurred during the month of May were $1,

arsen [322]

Answer: $1,400,000

Explanation:

Joint cost = $1,800,000

Further processing cost(Gasoline) =$100,000

Further processing cost(kerosene) =$200,000

Price of gasoline = $4 per gallon

Price of kerosene = $3.50 per gallon

Processed gasoline in May = 500,000

Processed kerosene in May = 600,000

Allocation of joint cost(Gasoline) = (Total cost × share ratio)

Share ratio = further processing cost of component ÷ total further processing cost

[$1,800,000 × ( 100000 ÷ 300000)]

($1,800,000 × 0.33333333) = 599,999.999

Net realizable value = (Final sales price - processing cost)

[ $(500,000×4) - $600,000]

$2,000,000 - $600,000

$1,400,000

Production cost of gasoline is $1,400,000

5 0

3 years ago