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Leto [7]
3 years ago
15

Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $90,500 and de

clared dividends of $21,500 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method
Business
2 answers:
kirill [66]3 years ago
7 0

Answer:

$27,600

Explanation:

A. To record equity income

Dr Investment in macro $36,200

Cr Equity income from macro $36,200

(40%×90,500= 36,200)

B.To record cash dividend

Dr Cash $8,600

Cr Investment in macro $8,600

(40%×21,500=8,600)

Therefore:

Increased in investment- macro company stock

$36,200-$8,600= $27,600

andreev551 [17]3 years ago
4 0

Answer:

Explanation:

Given the following :

Purchased outstanding stock by Ramiro= 40%

Marco net income = $90,500

Marco dividend = $21,500

From the information above, under the Equity method, Purchasing a percentage share of a stock entitles the buyer to partial ownership of the company. With Ramiro's 40% purchase of Marco's outstanding stock, Ramiro is entitled to 40% of Marco's net income and dividend.

Therefore ;

40% of net income :

0.4 × $90,500 = $36,200(Ramiro's share of net income)

40% of dividend :

0.4 × $21,500 = $8600(Ramiro's share of dividend)

Ramiro's adjustment = $(36,200 - 8600) = $27,600

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XYZ Corporation's standards call for 1,000 direct labor-hours to produce 250 units of product. During October the company worked
larisa [96]

Answer:

Standard hours= 1,200 hours

Explanation:

Giving the following information:

XYZ Corporation's standards call for 1,000 direct labor-hours to produce 250 units of product.

During October the company worked produced 300 units.

<u>First, we need to calculate the standard hour per unit:</u>

Standard hour per unit= 1,000 / 250= 4 hours per unit

Now, the standard hours allowed for 300 units:

Standard hours= standard hour per unit*number of units

Standard hours= 4*300

Standard hours= 1,200 hours

3 0
3 years ago
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $350 and has a unit cont
grandymaker [24]

Answer:

Break-even point in composite units = 811 units

Explanation:

Number of modal;

5 Youth models

9 Adult models

6 Recreational models

Annual fixed costs total = $6,550,000

Find:

Break-even point in composite units

Computation:

Mixed contribution margin = 5[130] + 9[475] + 6[525]

Mixed contribution margin = 650 + 4275 + 3150

Mixed contribution margin = $8075

Break-even point in composite units = Annual fixed costs total / Mixed contribution margin

Break-even point in composite units = 6,550,000 / 8075

Break-even point in composite units = 811 units

3 0
3 years ago
HELP ME PLEASE************
ratelena [41]

Answer:

The 1st one because I would want the product to be okay for me to use and not under pay for something that will harm me.

Explanation:

It is just plain facts!!!

6 0
3 years ago
Read 2 more answers
Common stock, par $12 per share, 49,000 shares outstanding. Preferred stock, 8 percent, par $17.5 per share, 7,710 shares outsta
Vlad [161]

Answer:

<h2>a. The Preferred stock is noncumulative.</h2>

Preferred stock

= 7,710 * 17.5 * 8%

= $‭10,794‬

Per share

= 10,794/7,710

= $1.40

Common Shareholders.

= 63,800 - 10,794

= $‭53,006‬

Per share

= ‭53,006‬/49,000

= $1.08

<h2>b. Preferred stock is cumulative. </h2>

This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.

Preferred stock

= 7,710 * 3 years (2017,2018,2019)

= $‭23,130‬

Per share = 23,130/7,710

= $3

Common stock

= 63,800 - 23,130

= $‭40,670‬

Per share

= 40,670/49,000

= $0.83

c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?

b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.

7 0
4 years ago
One measure of the importance of a publicly traded asset class in the U.S. economy can be calculated by multiplying the number o
anygoal [31]

Answer:

Market Capitalization

Explanation:

One measure of the importance of a publicly traded asset class in the U.S. economy can be calculated by multiplying the number of publicly traded shares by the current market price of the stock. The result of this calculation is more commonly referred to as market capitalization.

Market capitalization refers to the total market value of a firms shares. it is the cumulative value of the outstanding shares a publicly quoted company (a company that trades its shares in the stock exchange).

7 0
3 years ago
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