Answer:
B. Workers prefer companies that minimize operating costs.
C. The owners of stock are society.
D. Successful companies attract more talent.
Explanation:
The intrinsic stock value does not need to reflect the market value of the company stock. However, the intrinsic stock reflects the company's lucrative aspect, something more intuitive that describes the company's operating. Therefore, a high intrinsic stock value reflects a company with great reputation.
A company with high intrinsic stock will surely attract more talent, as the talent pool is motivated by working in a reputable, efficient company. This kind of company is surely cost-effective in terms of operation too.
Answer:
Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
Explanation:
Book value per share of Red Inc = $1.20 per share
As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.
Net gain = Sale price - Book value
= $3.40 - $1.20 per share = $2.2 per share
Total gain for the year end on June 30 will be
= $2.2 per share X 180,000 shares = $396,000 shares
Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
Answer:
The net income for 2020 was $90,000
Explanation:
Shmenson Company
Income Statement for the year ended 2020
Sales $470,000
Less Cost of Sales
Beginning Inventories $70,000
Add Net purchases $180,000
Add Freight In $15,000
Less Ending Inventories ($60,000) ($205,000)
Gross Profit $265,000
Less Expenses
Operating expenses ($175,000)
Net Income $90,000
Conclusion
Thus, the net income for 2020 was $90,000.
Answer:
Given that generators generate greater profit with less consumption of hours, the maximum profit would be building 130 generators, obtaining $ 32,500 of profit, and there would be 10 hours of testing left over.
Explanation:
Since the Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators, and both of these products require wiring and testing during the assembly process, and each generator requires 2 hours of wiring and 1 hour of testing and can be sold for a $ 250 profit, while each alternator requires 3 hours of wiring and 2 hours of testing and can be sold for a $ 150 profit, and there are 260 hours of wiring time and 140 hours of testing time available in the next production period and Electrotech wants to maximize profit, to determine this situation the following mathematical logical reasoning must be carried out:
260/2 = 130
140 - 130 = 10
130 generators = 32,500
Thus, given that generators generate greater profit with less consumption of hours, the maximum profit would be building 130 generators, obtaining $ 32,500 of profit, and there would be 10 hours of testing left over.
Answer:
Debit Interest Expense and credit Interest Payable for $6,000.
Explanation:
$100,000 × 8% × 9/12 = $6,000.
