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3 years ago

The margin requirement on a stock purchase is 25%. You fully use the margin allowed to purchase 100 shares of MSFT at $25.

Business

1 answer:

loris [4]3 years ago

8 0

Answer:

Return or Percentage Loss=-0.48=-48%

Explanation:

Given Data:

The margin requirement on a stock purchase =25%

Number of shares=100 shares

Price of purchase=$25/ share

Drop in Price=$22

Required:

Percentage loss=?

Solution:

Loss occurred=($22-$25)*100

Loss occurred=-$300

Actual amount at which shares are bought=0.25*($25*100)

Actual amount at which shares are bought=$625

Return or Percentage Loss= $\frac{Loss}{Actual \ Amount}$

Return or Percentage Loss= $\frac{-300}{625} =-0.48$

Return or Percentage Loss=-0.48=-48%

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Simon Company’s year-end balance sheets follow.

vivado [14]

Answer:

A.Current ratio

2017 191%

2016 248%

2015 289%

B.Acid Test Ratio

2017 101%

2016 139%

2015 183%

Explanation:

A.Computation of the current ratio for the year ended 2017, 2016, and 2015.

Using this formula

Current Ratio =Current Assets / Current Liabilities

2017 2016 2015

Cash $26,403 $29,364 $29,991

Accounts receivable, net

73,552 52,436 40,392

Merchandise inventory 96,214 70,676 43,017

Prepaid expenses 8,255 7,944 3,467

a.Current asset

204,424 160,420 116,867

b.Current Liabilities

Accounts payable $107,101 $64,564 $40,392

Let plug in the formula

(a) / (b) Current Ratio 191% 248% 289%

Therefore the Current ratio are:

2017 191%

2016 248%

2015 289%

B.Computation for acid-test ratio for the year ended 2017, 2016, and 2015.

Using this formula

Acid Test Ratio=Current Assets / Current Liabilities

2017 2016 2015

Cash $26,403 $29,364 $29,991

Accounts receivable, net

73,552 52,436 40,392

Prepaid expenses 8,255 7,944 3,467

a. Current asset

108,210 89,744 73,850

b. Current liabilities

Accounts payable $107,101 $64,564 $40,392

Let plug in the formula

(a) / (b)Acid Test Ratio 101% 139% 183%

Therefore the Acid Test Ratio are:

2017 101%

2016 139%

2015 183%

8 0

3 years ago

You are an RR at a firm and one of your customers calls you up and informs you that she wishes to exercise a long listed option

MAVERICK [17]

Answer:

The correct answer is: The firm would present the order to the Options Clearing Corporation.

Explanation:

The Options Clearing Corporation or OCC works under the Securities and Exchange Commission (<em>SEC</em>) and acts as a guarantor and the issuer of options and futures contracts. The OCC is also in charge of clearing transactions for stock indexes, interest rate composites, and foreign currencies.

7 0

3 years ago

Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2021 and 2020 contained errors as follows: 2

lubasha [3.4K]

Answer:

$3,000 understated

Explanation:

The computation of the working capital in case of no correcting entries made is shown below:

= Depreciation Expense for 2020 - depreciation expense for year 2021 - ending inventory for 2021

= $18,000 - $6,000 - $9,000

= $3,000 understated

While there is no additional errors occurred and no correcting entries passed so in this the $3,000 is understated by above calculation

6 0

3 years ago

Scrimshander, Inc. is a shipping company, transporting goods using cargo ships. On January 1, 2017, the company purchases and pu

Alex17521 [72]

Answer:

Scrimshander, Inc.

a) Annual depreciation expense = $360,000

b) Net book value of the cargo ship as of December 31, 2019 = $9,280,000

c) Net book value of the cargo ship as of December 31, 2041 = $1,360,000

d) Depreciation expense for 2042 = $360,000

Explanation:

a) Data and Calculations:

Purchase price of a cargo ship = $10,000,000

Expected useful life of the ship = 25 years

Salvage value = $1,000,000

Depreciable amount = $9,000,000 ($10,000,000 - $1,000,000)

Annual depreciation expense = $360,000 ($9,000,000/25)

Net book value as of December 31, 2019 = $9,280,000 ($10,000,000 - $720,000)

Accumulated depreciation = $720,000 ($360,000 * 2)

Net book value as of December 31, 2041 = $1,360,000 ($10,000,000 - 8,640,000)

Accumulated depreciation = $8,640,000 ($360,000 * 24)

7 0

3 years ago

This project is similar to a project you completed a few months ago and you would like to reference the older project for inform

Mkey [24]

Answer:

The correct answer is A. Analogous estimating.

Explanation:

The analogous estimate, also called top-down estimates, means the use of real durations of similar previous activities, as the basis for the estimation of the duration of a future activity. It is frequently used to estimate the duration of the project when there is a limited amount of project detail information (for example in the initialization phase).

The Analog Estimate is also called top-down, it consists of using the real costs of similar previous projects as a basis for the estimation of costs of the current project. This technique is frequently used when the detail of the information about the current project is limited ( for example in the early stages Analog Estimation is a form of expert judgment It is less expensive than other techniques, and usually less accurate It is more reliable when the previous project is similar in fact and not only in appearance and when groups or individuals who prepare estimates, have the required experience.

6 0

3 years ago