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3 years ago

A stockholder in a Subchapter S corporation:

Business

1 answer:

Lina20 [59]3 years ago

8 0

Answer:

The answer is C.

Explanation:

The shareholders are the owners of the company while board of directors are the agents( although many directors now have shares in the company) that runs the business on behalf of the shareholders. The problem associated with directors not pursuing the interests of the shareholders is known as agency problem.

Board of directors/directors are to make sure the business run smoothly while the shareholders provide the fund to meet emergencies.

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Joseph buys a Hummer for $59,000, financing it with a five-year 7.60% APR loan paid monthly. He decides to pay an extra $50 per

Alex Ar [27]

Answer:

57.07 months.

Joseph must decide whether the 57th payment was $1,327, or he can pay a 58th payment of just $92.

Explanation:

The easiest way to calculate a monthly payment is using a payment calculator:

principal = 59,000
n = 60
APR = 7.6%

Monthly payments = $1,185.04

Since Joseph will pay an extra $50 each month, his payment = $1,235.04

By paying that extra amount Joseph will reduce his payments by almost 3 months to 57.07 months

After the 57th payment, Joseph' balance = $91.43, so he can decide to pay a little on the 57th payment or just pay $92 next month.

7 0

3 years ago

Identify the type of cash flow activity for each of the following events (operating, investing, or financing): a. Redeemed bonds

Burka [1]

Answer is given below

Explanation:

type of cash flow activity

a. Redeemed bonds ---------------Fiancing

b Issued preferred stock -----------Fiancing

c. Paid cash dividends --------------Fiancing

d. Net income --------------------------Operating

e. Sold equipment --------------------Investing

f. Purchased treasury stock -------Fiancing

g. Purchased patents ----------------Investing

h. Purchased buildings -------------Investing

i. Sold long-term investments ----Investing

j. Issued bonds ------------------------Fiancing

k. Issued common stock -----------Fiancing

7 0

3 years ago

Why doesn’t a change in the price of eggs cause a change in the demand for eggs?

FromTheMoon [43]

Supply and demand changes the price of eggs

6 0

3 years ago

A company has net working capital of $0, current liabilities of $25 and total assets equal to $100. What is its current ratio?

kap26 [50]

I believe the answer is B) 1.0

6 0

3 years ago

Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $206,000; Costs = $123,000; Other expe

EastWind [94]

Answer:

a. What is the 2018 operating cash flow?

$31,200 + $14,000 = $45,200

b. What is the 2018 cash flow to creditors?

-$13,100 - $3,100 = -$16,200 (it is negative since interests and principal were paid to creditors)

c. What is the 2018 cash flow to stockholders?

-$10,000 + $4,600 = -$5,400 (it is negative since more dividends were paid to stockholders than new equity raised)

d. If net fixed assets increased by $22,000 during the <em>year, what was the addition to NWC?</em>

net capital spending = depreciation + increase in fixed assets = $14,000 + $22,000 = $36,000

cash flow from assets = cash flow to creditors + cash flow to stockholders = -$16,200 - $5,400 = -$21,600

change in net working capital = operating cash flow + cash flow from assets - net capital spending = $45,200 - $21,600 - $36,000 = $12,400

Explanation:

net income = $206,000 - $123,000 - $7,900 - $14,000 - $13,100 - $16,800 = $31,200

8 0

3 years ago