Answer:
31 per share
Explanation:
The computation of value per share is shown below:-
Share exchange ratio = MPS of Nelson ÷ MPS of George
= $38 ÷ $31
= 1.2258
MPS a + b = MVa + MVb ÷ Number of shares a + Number of shares b × SER
= (1600 × $38) + (4,600 × $31) ÷ 4,600 + (1,600 × 1.2258)
= $60,800 + $142,600 ÷ 4600 + 1,961
= $203,400 ÷ 6,561
= 31 per share
Therefore for computing the value per share we simply applied the above formula.
Answer: a. a credit to Accounts Payable.
Explanation:
When paying off a note, cash will be used so cash will have to be credited to show that it is decreasing.
Interest expense will be debited by the interest accumulated on the loan because expenses are debited when they increase.
Notes Payable will be debited to show that the note has now been retired.
There is no credit for Accounts payable involved in this transaction.
<span>Kevin has analyzed the situation well. However, he should also consider the fact that he saved $10 by only purchasing the shirt.
Opportunity cost is the cost of the forgone alternative. Out of the 3 choices, he only purchased 1 of the choices, the opportunity cost are the other two choices. However, he is still capable of buying the flip-flops costing $10 but he chose not to do so. He should consider it as a savings aside from it being a lost opportunity.</span>
Answer:
The correct answer is B
Explanation:
The net cost of goods is computed as if the paid in the discounting period:
Net Cost of goods = Inventory cost - (Inventory cost × Discounting percentage)
where
Inventory cost is $9,000
Discounting percentage is 2%
Putting the values above:
Net Cost of goods = $9,000 - ($9,000 × 2%)
Net Cost of goods = $9,000 - $180
Net Cost of goods = $8,280
Therefore, the amount of $8,280 will be paid by the company if paid within the discounting period and avail the discount of $180.
Answer:
c. All are correct.
Explanation:
Variable costs depend on the number of units produced, if production drops to zero, all associated variable costs also drop to zero; options b and d are correct.
Fixed cost remain the same with changes in the production volume. Therefore, even if Bev's Bags produced no bags, fixed cost of thread would stay the same; option a is correct.
Therefore, all are correct.
