Answer:
a. No effect
b. Decreases in total asset
c. No effect
d. Decreases in total stockholder equity
Explanation:
Given that
Number of shares purchased = 10,000 shares
Par value = $10
Common stock = $290,000
By using the above information, we can interpret that
a. There is no effect on the net income
b. The total asset is decreased by $290,000 as it reduces the cash balance for $290,000
c. There is no effect on the total paid-in-capital
d. Total stockholder equity is decreased by $290,000
We assume that treasury stock is accounted for using the cash method
Answer:
No, not at all. You should not go for producing that good.
Explanation:
A company do business in order to earn profits. A company earns profits by selling the product, good or service they produce or provide to the consumers. But if the cost of producing the goods is more than the profits earned due to that product, then there is no use of doing business. In order to earn profits, the cost of the product produced must be less than the price of that product. The price of the product should be set at a level which can cover all the costs incurred to produce that product. So in this question, if the price is $12 and cost is $40, then there is no need to product that product any more because this product is only incurring loss to the company.
What's the question? sorry, but am i missing something?
Answer:
The answer is: Ryan lost $1,200 dollars
Explanation:
Ryan sold short 300 shares of the stock when it was at $66. This means, he borrowed 300 shares from the broker with the obligation of buying them back later. When you sell short, you want the stock price to go down to make money, because when you buy them back you are buying at a lower price than what you sold them for, and the price difference times the number of shares is your gain.
In this case, the price went up to $70 and he decided to buy them back before the stock went higher up and he lost more money. Since he sold short at $66 and bought back at $70, it means he lost $70-$66=$4 per share. Multiply this by the amount of shares in the transaction $4x300=$1200. And that is the dollar return on his investment which is negative in this case.
