Answer:
Option (c) $141,818
Explanation:
Data provided in the question:
Number of common stocks issued = 5,000
Value of common stock = $25 par value
Number of preferred stocks issued = 7,500
Value of preferred stock = $20 par value
Lump sum value of total shares issued = $260,000
Now,
Fair value of the preferred stocks = 7,500 × $20
= $150,000
Fair value of the common stocks = 5,000 × $25
= $125,000
Thus,
Total value of the stocks issued = $150,000 + $125,000
= $275,000
Therefore,
Proceeds allocated to the preferred stock
= Lump sum value × [ Fair value of the preferred stocks ÷ value of the stocks ]
= $260,000 × [ $150,000 ÷ $275,000 ]
= $141,818.18 ≈ $141,818
Hence,
Option (c) $141,818
Answer: 8%
Explanation:
Profit Margin = Net income / Net sales
2017 Net income ⇒ $54,400
2017 Net Sales ⇒ $680,000
Profit Margin₂₀₁₇ = 54,400/680,000
= 0.08
= 8%
Answer:
Option C). This is a capital lease because it meets at least one of the four capital lease criteria.
Explanation:
In the following situations, the lease transactions are called Finance Lease.
i) The lessee will get the ownership of leased asset at the end of the lease term.
ii) The lessee has an option to buy the leased asset at the end of lease term at price, which is lower than its expected fair value at the date on which option will be excercised.
iii) The lease term covers the major part of the life of asset.
iv) At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset.
In the given question, Present value of minimum lease rental amounting to $ 78 million covers substantially 94 % portion of the initial fair value of leased asset. Accordingly, last condition / last situation mentioned above to treat lease as finance lease is satisfied in the given question. In other words, out of four capital lease criteria mentioned above, fourth criteria / fourth condition (At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset) is satisfied in this given question.
Present value of minimum lease rental as a percentage of initial fair value of leased asset :-
= (78 Million / 83 Million ) * 100
= 0.94 * 100
= 94 % (approx).
Lease in given question is capital lease because it meets at least one of the four capital lease criteria.
Answer:
a. The company can utilize production facilities to produce greater volumes to meet demand from a larger market, leading to higher productivity, lower cost and greater profitability.
Explanation:
Options are <em>"a. the company can utilize its production facilities to produce greater volumes to meet demand from a larger market, leading to higher productivity, tower cost and greater profitability. b. it will lead to a lower sales volume, which enables the company to free up more production power and require fewer employees. c. it will lead to a lower sales volume, which will reduce production costs and lead to greater production power. d. It will lead to a lower sales volume which means using less production power, enabling employees to have more time to participate in a learning environment."</em>
<em />
The question here is how the company will benefit by entering global market. And to enter global market, the company must produce larger volumes. So, the options B, C,& D are not correct. Because the company is looking to produce more and utilize its production capacity to the full to increase the profits by decreasing the costs (economies of scale). Thus, option A is correct.
Answer:
security policy is the correct answer.
Explanation:
