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babunello [35]
3 years ago
11

Ollie Company experienced the following events during its first-year operations: 1. Acquired $72,000 cash from the issue of comm

on stock. 2. Borrowed $26,000 from the First City Bank. 3. Earned $59,000 of cash revenue. 4. Incurred $43,000 of cash expenses. 5. Paid a $7,000 cash dividend. 6. Paid $43,000 to purchase land. Required: Prepare a statement of changes in stockholders' equity.
Business
1 answer:
SCORPION-xisa [38]3 years ago
4 0

Answer and Explanation:

The preparation of the statement of changes in stockholders' equity is presented below:

                                                Ollie Company

                      Statement of changes in stockholders' equity

Beginning common stock $0

Add: Common stock issuance $72,000

Ending common stock $72,000

Beginning retained earning $0

Add: Net income $16,000      ($59,000 - $43,000)

Less: cash Dividend paid -$7,000

Ending retained earning $9,000

Total stockholder equity $81,000 ($72,000 + $9,000)

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Break-Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flowe
kenny6666 [7]

Answer:

The company should provide, in average, 90 jobs per month in order to break even.

Explanation:

We will assume that the variable costs are proportional to the quantity and thus VC=a*Q

the profit obtained is

profit = P*Q  , (Price [$/job] * Jobs sold [jobs])

and the total costs are

total costs= FC+VC = FC + a*Q , FC=fixed costs

in order to break even the quantity sold should be enough to cover all costs, therefore

profit = total costs

P*Q = FC + a*Q → Q= FC/(P-a)

thus

Q= FC/(P-a) = $3240 / ($60/job - $24/job) = 90 jobs

5 0
2 years ago
Maple Farms, Inc. v. City School District of Elmira. Read the summary of the court opinion. Could something like this bankrupt a
tester [92]

The correct answers to these open questions are the following.

Maple Farms, Inc. v. City School District of Elmira.

Could something like this bankrupt a company?

Yes, it can, if the proper forecast were not done taking into consideration all of the possible variables at medium and long-range.

Do you agree with the decision?

It was a tough decision because the court declared in its decision that the performance was not impracticable, as Maple Farm Inc indicated when decided to break the contract.

In strict theory, I agree with the court's decision because the explanation was that an "impractical" occurred when an event happened totally unexpected. And in this case, Mapple Farm Inc could have taken extra provisions knowing that milk had a 10% increase the last year and had the chance of more increases in the present year.

That is how a company can avoid this type of situation. Taking better provisions, contemplating all kinds of variables, knowing that in the future, something unexpected can happen and could be prevented with the proper forecast.

8 0
2 years ago
A $63,000 machine with a 7-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with
Free_Kalibri [48]

The incremental annual cash flow associated with the project is $12400

<h3>What is incremental annual?</h3>

Sales resulting from a higher volume of sales are known as incremental revenue. Establishing a baseline revenue level and comparing changes from that point onwards is required to calculate incremental revenue.

<h3>According to the given information :</h3>

Depreciation=[($63,000/7 years)-($75,000/5 years)

Depreciation=$9000-$15000

Depreciation=$6000

Now let calculate the Incremental annual cash flow

Incremental annual cash flow

={($16000-$6000) - [($16000-$6000)*34%]+$6000}

= {(10000)- [10000*34%]+6000}

= {(10000) - 3600+6000}

= {16000-3600}

= $12400

Incremental annual cash flow=$12400

Therefore the incremental annual cash flow associated with the project is $12400

To know more about the incremental annual visit:

brainly.com/question/22784283

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4 0
2 years ago
Santos International is a beauty salon in Texas. The salon is conveniently located in mid-town, and there is plenty of parking.
Marta_Voda [28]

Answer: d. By choosing the right distribution channel.

Explanation:

In order for Santos to benefit effectively from the services they offer, they need to select the right distribution channel that will ensure that their products and services get to their customers in such a way that the customers are able to utilize these services.

They need to research the various distribution channels available to them and then based on the unique circumstances of their customers, decide which one would be best to ensure maximum reach to their customer base.

5 0
2 years ago
In response to the new employee end of shift policy Brianna proposes that Ollie pay its employees on their breaks instead of mak
andrew11 [14]

Answer:

B. personal appeals

Explanation:

Personal appeals is a tactic used to influence the opinions of others towards a particular purpose,it is usually done to help another person or group of persons to get favoured by another person.

Brianna is most likely adopting the use the personal appeals to influence the opinions of Ollie concerning the payment time for the workers of Ollie.

7 0
3 years ago
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