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Svet_ta [14]
3 years ago
13

Midyear on July 31st, the Baldwin Corporation's balance sheet reported: Total Liabilities of $101.255 million Cash of $8.040 mil

lion Total Assets of $163.111 million Retained Earnings of $34.226 million. What was the Baldwin Corporation's common stock
Business
1 answer:
kkurt [141]3 years ago
5 0

Answer:

Stock = 27.629 million

Explanation:

<u>Baldwin Corporation</u>

<u>Balance Sheets</u>

<u>Assets</u>

Cash of $8.040 million

Total Assets $163.111 million

<u>Liabilities and Owner's Equity </u>$163.111 million

Stock 27.629 million

Total Liabilities  $101.255 million

Retained Earnings  $34.226 million

According to Balance sheet approach total assets must equal total liabilities and Owner's Equity.

Total assets including cash are given which are equal to $163.111 million  and when we subtract total liabilities and retained earning from it we get the value of stock.

Stock = Total Assets- Total Liabilities - Retained Earnings

Stock = $163.111 million - $101.255 million-$34.226 million

Stock = 27.629 million

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The correct answer to this open question is the following.

Although the question is incomplete because it does not attach the model to answer it we can comment on the following.

The problem is that Jamal, trying to increase profits, decided to sell two different products that are not part of the Subway products. When the franchisor visited Jamal's location, it realized the changes and set an ultimatum to Jamal to respect the franchise agreement.

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One possible solution is that Jamal respects those 30 days to make the proper corrections, follow the guidelines established in the Subway's manuals, offer a sincere apology, and commit himself to operate the franchise just as it is stated on the agreement.

7 0
4 years ago
On September 30, Year 1, Payne, Inc. exchanged some of its shares for all of the common stock of Salem, Inc. in a business combi
MrRissso [65]

Answer:

Payne should exclude Salem's January 1, Year 1, Retained Earnings and income for January 1 to September 30 from consolidated Retained Earnings and consolidated income

Explanation:

The Retained Earnings of Salem on January 1, Year 1 and and its income during the period between January 1 and September 30 would not be included in the Year 1  consolidated financial statements.

The reason is that The Retained Earnings of Salem on January 1, Year 1 and and its income during the period between January 1 and September 30 are part of the equity of the shareholders that that Payne acquired on September 30, Year 1. They would then be eliminated in the eliminating entry of the consolidating investment.

6 0
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When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying
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6 0
1 year ago
Allison wants to become an MLO but is unsure about the process in which she must go through to obtain her license. She needs som
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Answer: See explanation

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8 0
3 years ago
Blue Chance Co. sells computers and video game systems. The business is divided into two divisons along product lines. Variable
slamgirl [31]

Answer:

ratio = 7 : 3  

Weighted average contribution ratio = 37 %

break-even point = $800,000

sales level = $560,000

Sales level = $240,000

Explanation:

Solution

we know here that contribution margin for computer is express as

contribution margin for computer = \frac{280000}{700000}

contribution margin for computer =  40%

and

Contribution margin for VG Systems is = \frac{90000}{300000}

Contribution margin for VG Systems is = 30%

so  

ratio = (40 + 30 ) : 30 = 7 : 3  

and

Weighted average contribution margin ratio are here

Weighted average contribution ratio = 40% × 0.7 + 30% × 0.3

Weighted average contribution ratio = 37 %

and

break even point in dollars are

break-even point = \frac{296000}{37}

break-even point = $800,000

and

sales level are here

sales level for computer  = 800000 × 70%  

sales level = $560,000

and

Sales level for VG systems: 800000 × 30%

Sales level = $240,000

7 0
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