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4 years ago

What are consequences of rapid inflation?

Business

1 answer:

Black_prince [1.1K]4 years ago

3 0

The answers are

Savings accounts become less desirable because interest earned is lower than inflation

Individual purchasing power increases, which results in an increase in demand.

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Explain five reasons that may cause a company to redeem its own shares

pochemuha

- Companies buyback shares for a variety of reasons, including firm consolidation, increased equity value, and to appear more financially appealing.

-The disadvantage of buybacks is that they are frequently financed with debt, putting a burden on cash flow.

-Stock repurchases can have a modestly favorable impact on the economy as a whole.

4 0

2 years ago

San Francisco Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is cur

Rzqust [24]

Answer:

The company's operating income will increase from $8,800,000 by $350,000 to become $9,150,000

Explanation:

Detailed explanation and calculation is shown in the image below

4 0

3 years ago

Most founders' agreements include a buyback clause, which legally obligates the departing founder to sell to the remaining found

Rashid [163]

Answer:

Yes

Explanation:

This type of agreements are generally signed in order to protect the foundling members of a business that decide to continue working. Generally, founding members have a large participation in the business or even have certain special stocks that grant them higher voting power. In order for the remaining founders to be able to keep managing the company, they sign this type of agreements so that other external investors do not replace them.

7 0

4 years ago

The following is the adjusted trial balance for Nadia Company. Nadia Company Adjusted Trial Balance December 31 Account No. Debi

muminat

Answer:

Net Income = $2,980

Statement of owner's equity = $15,280

Total Assets = $19,050

Total Liabilities = $3,770

Explanation:

Requirement A) Income Statement

Nadia Company

Income Statement

For the Year Ended December 31, 20X9

Revenues: $ $

Fees Earned 10,930

Expenses:

Wages expense 2,450

Rent expense 1,900

Utilities expense 1,475

Depreciation Expense 1,150

Miscellaneous Expense 975

Total Expenses (7,950)

Net Income 2,980

Nadia company's total revenue exceeds the total expenses, therefore, the company earns a net income of $2,980.

Requirement B) Statement of owner's equity

Nadia Company

Statement of Owner's Equity

For the Year Ended December 31, 20X9

Particulars $

Beginning Capital 10,000

Add: Additional investment (Capital) 3,000

Add: Net income for the year 2,980

15,980

Less: Drawings 700

Capital, December 31 (Ending Capital) 15,280

The amount of $15,280 is the total owner's equity for the company. The company will this amount in the balance sheet as well.

Requirement C) Balance Sheet

Nadia Company

Balance Sheet

As At December 31, 20X9

Particulars $ $

Assets

Current Assets

Cash 5,130

Accounts Receivable 3,300

Prepaid Expenses 420

Total Current Assets 8,850

Property, Plant, and Equipment

Equipment 12,400

Less: Accumulated Depreciation (2,200)

Total Property, Plant, and Equipment 10,200

Total Assets 19,050

Liabilities & Owner's Equity

Liabilities

Current Liabilities

Accounts Payable 700

Notes Payable (Short-term) 3,070

Total Liabilities 3,770

Owner's Equity

Owner's Equity (From requirement B) 15,280

Total liabilities and owner's equity 19,050

Therefore, Total Assets = Total Liabilities + Owner's Equity

5 0

3 years ago

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding D

kogti [31]

Answer:

Cost per EUP Materials: $2,05

Explanation:

Units Materials Conversion

Beginning WIP: 25,000 25,000 (100%) 13,750 (55%)

Units Transferred Out: 135,000 135,000 135,000

Ending WIP: 30,000 30,000 (100%) 9,000 (30%)

Equivalent Units of Production (FIFO): Units Transferred Out + Equivalent Units in ending WIP - Equivalent Units in Beginning WIP

EUP Materials: 135,000 + 30,000 - 25,000 = 140,000

Cost per Equivalent Unit (FIFO): Total Cost Incurred in the Period / Equivalent Units of Production

Cost per EUP Materials: 287,000 / 140,000 = $2,05

7 0

3 years ago