Answer:
explicit costs = $1,260,000
the implicit costs = $8,400,000
total costs = $9,660,000
Explanation:
the underwriter's explicit costs = total number of shares x initial price x % charged by underwriter = 700,000 x $24 x 7.5% = $1,260,000
the implicit costs = (market price - initial price) x total number of shares = ($36 - $24) x 700,000 = $8,400,000
total costs = $9,660,000
Question Completion:
Prepare an Income Statement for the month of June.
Answer:
Windsor, Inc.
Income Statement for the month ended June 30, 2017:
Service Revenue $7,730
Supplies expense 1,100
Maintenance and
repairs expense 700
Advertising expense 400
Utilities expense 200
Salaries and
wages expense 1,630 $4,030
Net Income $3,700
Explanation:
Windsor, Inc. Income Statement is where the revenues and expenses are summarized in order to arrive at the net income or profit of the business. Temporary accounts are closed to the income statement. These are accounts that are periodic in nature. They are not permanent accounts, which are transferred to the next period. The only element of the income statement that is taken to the balance sheet is the net income or loss.
Answer:
$6,000
Explanation:
Data provided
Beginning credit balance = $26,000
Net loss = $12,000
Paid dividends = $8,000
The calculation of Retained Earnings account is given below:-
Retained Earnings = Beginning balance - Net loss - Dividend
= $26,000 - $12,000 - $8,000
= $26,000 - $20,000
= $6,000
So, for computing the retained earning we simply applied the above formula.
Answer:
After World War II, the United States helped rebuild Western Europe.
Explanation:
There was a program known as 'The Marshall Plan' or 'European Recovery Program' started by United States in which it provided help to Western Europe after the World War II. It was passed in 1948 by Secretary of United States 'John Marshall'. According to this program, it gave more than $15 billion as a financial help to Western Europe to rebuild their continent.
Their main purpose was to revive the working economy of the world. Also, Marshall believed that stable government in Europe would depend on economic stability of the people.
