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mash [69]
3 years ago
8

At the beginning of the year (January 1), Buffalo Drilling has $10,000 of common stock outstanding and retained earnings of $7,0

00. During the year, Buffalo reports net income of $7,300 and pays dividends of $2,000. In addition, Buffalo issues additional common stock for $6,800.Prepare the statement of Shareholer'sequity in the end of the year.
Business
1 answer:
GarryVolchara [31]3 years ago
3 0

Answer:

Shareholders Equity  

INITIAL Shareholders Equity  $ 17.000

Common Stock  $ 6.800

Retained Earnings  $ 5.300

FINAL Shareholders Equity $ 29.100

Explanation:

Retained Earnings Report  

Opening retained earnings $ 7,000

Add: Net Income $ 7,300

Subtotal $ 14,300

Less: Dividens -$ 2,000

Total $ 12,300

Stockholders' Equity   INITIAL   FINAL  

Common Stock  $ 10,000 $ 16,800    

Retained Earnings  $ 7,000 $ 12,300

TOTAL EQUITY  $ 17,000 $ 29,100

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Company A considers buying company B by means of a tender offer. Company B will accept any offer of A which reflects a fair valu
Evgen [1.6K]

Answer:

the price per share in the case when A offers B is $200

Explanation:

The computation of the price per share is as follows:

The fair value is

= ($60 + $120) × 50%

= $90

The 50% represent the percentage of equally

Now the price per share is

= $90 + $90 + $20

= $90 + $110

= $200

Hence, the price per share in the case when A offers B is $200

The same is to be considered

3 0
3 years ago
Indirect costs occur when
nikklg [1K]

Answer:

The answer is A. resources are shared by more than one product or service.

Explanation:

Indirect cost are costs that are not directly related or traced to any product or activity. They are shared or used by more than one activities. Examples include, Adminstrative expenses, advertising expenses, telephone expenses, rent, office expenses etc.

Like direct cost, indirect cost can be fixed or variable.

Indirect costs are used by business as a whole and not just limited to a particular product.

Option B is not correct. Cost that are directly traced or related to a product is known as direct material. For example, direct labour and direct material used to produce a particular good.

Option C and D are also wrong

5 0
3 years ago
Insurance is a financial service that allows a
astra-53 [7]

Insurance is a financial service that allows a consumer to share liability with a company.

The answer is C

4 0
3 years ago
Read 2 more answers
Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would
astra-53 [7]

Answer:

$60

Explanation:

For computing the target cost, first we have to determine the profit per unit which is shown below:

= Selling price × return on sales percentage

= $80 × 25%

= $20

Now the target cost would be

= Selling price per unit - profit per unit

= $80 - $20

= $60

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
X Company must replace one of its current machines with either Machine A or Machine B. The useful life of both machines is seven
Anastaziya [24]

Answer: 0 years

Explanation:

The payback period calculates the amount of time taken to recoup the initial investment made in a project or in the purchase of a machine or building. It calculates how long the cumulative cash flow generated from a project equals the cost of the project.

The payback period for both machines are zero years because the cumulative cash flow is less than the cost of the machine.

For machine A - cumulative cash flow- $-47,000 is less than -$71,000

For machine B - cumulative cash flow, -$7,000 is less than -$52,000

Explanations on how the figures were derived is found in the attached tables.

7 0
3 years ago
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