Answer:
118%
Explanation:
Calculation for the M2 measure invested in the managed portfolio
Using this formula
M2 measure invested in the managed portfolio=Managed portfolio standard deviation standard deviation/Market portfolio's standard deviation
Let plug in the formula
M2 measure invested in the managed portfolio=26%/22%
M2 measure invested in the managed portfolio=118%
Therefore the adjusted portfolio P* needed to calculate the M2 measure will have 118% invested in the managed portfolio and the rest in T-bills
Answer:
a. No effect
b. Decreases in total asset
c. No effect
d. Decreases in total stockholder equity
Explanation:
Given that
Number of shares purchased = 10,000 shares
Par value = $10
Common stock = $290,000
By using the above information, we can interpret that
a. There is no effect on the net income
b. The total asset is decreased by $290,000 as it reduces the cash balance for $290,000
c. There is no effect on the total paid-in-capital
d. Total stockholder equity is decreased by $290,000
We assume that treasury stock is accounted for using the cash method
Revenue Recognition Principle
An accounting principle that states that a company should record revenues when they provide goods and services to customers.
Answer:
c. $(143,000)
Explanation:
The Jinkerson Corporation is considering to discontinue the product U23N. The advantage or disadvantage Jinkerson Corporation will get after the discontinuation of product U23N will be ;
Saving in Fixed manufacturing expense = $144,000
The new fixed manufacturing expense = $234,000 - $144,000 = $90,000
The new fixed selling and administrative expense = $161,000 - $93,000 = 68,000.
The company overall net income will decrease by $143,000.
