According to the Law of Supply and Demand, what will happen when supply increases?

Which of the following jobs typically requires an associate’s degree?

nikdorinn [45]

Fashion merchandising

6 0

3 years ago

Effect of Financing on Earnings per Share Domanico Co., which produces and sells biking equipment, is financed as follows: Bonds

goldfiish [28.3K]

Answer:

a. Earnings per share on common stock $ 1.25

b. Earnings per share on common stock $ 2.75

c. Earnings per share on common stock $ 4.25

Explanation:

1.Calculation of Bond Interest:

Bonds payable, 10 % (issued at face amount) = $ 2,000,000

This implies that rate of Bond Interest = 10 %

Total face value of the Bonds issued = $ 2,000,000

Thus the Bond Interest = Total face value of the Bonds issued * Rate of Bond Interest

= $ 2,000,000 * 10 % = $ 200,000

Thus the Bond Interest = $ 200,000

2.Calculation of Preferred stock Dividend :

As per the information given in the question we have

Total value Preferred Stock issued = $ 2,000,000

Par value of preferred stock = $ 20

Thus the Total No. of shares of preferred stock issued = $ 2,000,000 / $ 20

= $ 100,000

Preferred stock dividend per share = $ 2

Total No. of shares of preferred stock issued = $ 100,000

Thus the total preferred stock dividend i.e., Preference Dividend = Preferred stock dividend per share * Total No. of shares of preferred stock issued

= $ 2 * 100,000

= $ 200,000

Thus the Preference Dividend = $ 200,000

c.Calculation of Number of shares of Common stock :

Total value Common Stock issued = $ 2,000,000

Par value of Common stock = $ 25

Thus the Total No. of shares of Common stock issued = $ 2,000,000 / $ 25

= 80,000

No. of shares of Common stock = 80,000

EARNING PER SHARE ON COMMON STOCK

(A)

Income before interest and income tax $700,000

Less mind interest ($200,000)

Income after bond interest and before income tax $500,000

Less income tax (40%×$500,000) $200,000

Net income tax ($500,000-$200,000) $300,000

Less preferred dividend ($200,000)

Income after preferred dividend $100,000

Numbers of shares of common stock $80,000

Earning per share on common stock ($100,000÷$80,000) $1.25

(B)

Income before interest and income tax $900,000

Less mind interest ($200,000)

Income after bond interest and before income tax $700,000

Less income tax (40%×$700,000) $280,000

Net income tax ($700,000-$280,000) $420,000

Less preferred dividend ($200,000)

Income after preferred dividend $220,000

Numbers of shares of common stock $80,000

Earning per share on common stock ($220,000÷$80,000) $2.75

(C)

Income before interest and income tax $1,100,000

Less mind interest ($200,000)

Income after bond interest and before income tax $900,000

Less income tax (40%×$900,000) $360,000

Net income tax ($900,000-$360,000) $540,000

Less preferred dividend ($200,000)

Income after preferred dividend $340,000

Numbers of shares of common stock $80,000

Earning per share on common stock ($340,000÷$80,000) $4.25

5 0

3 years ago

Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased

vfiekz [6]

Answer:

The question has asked to first create the income statement with the gain/loss on sale of asset and then find for depreciation. However, in order to create the income statement, we require the gain/loss on sale of asset and to do this, we require the depreciation. Hence, the order has been slightly changed but titled easily for your convenience (1. Depreciation 2. Sale of Asset 3. Income statement. Please refer explanation.

Explanation:

1. DEPRECIATION

1.A. Straight-line depreciation:

It is the simplest method of calculating depreciation and believes that the asset's value depreciates equally every year.

Depreciation per year = (Cost of asset - salvage value) / number of useful life years.

Depreciation for Year 1 : (7000 - 500) / 5 = $1300

Depreciation for Year 2: (7000 - 500) / 5 = $1300

Depreciation for Year 3 : (7000 - 500) / 5 = $1300

1. B. Units of Production/ Activity based depreciation:

Activity based depreciation is whereby an asset is depreciated based on the asset’s activity such as the number of hours worked or the number of units produced, during a particular period of time. Activity based depreciation per year is calculated as:

[(Cost - Salvage value) x activity performed during the period] / Total estimated life activity of the asset

Year 1 Depreciation : (7000-500) x (3100 / 13000) = $1550

Year 2 Depreciation : (7000-500) x (2500 / 13000) = $1250

Year 3 Depreciation : (7000-500) x (3400 / 13000) = $1700

1.C. Double-declining balance Method:

This is where the asset's value is depreciated at twice the rate than the straight line method. The depreciation amounts would be higher in the early years of the asset's life and gradually reduce towards the end. Hence, it does not mean that the depreciation amount would be higher than the straight line basis.

Straight Line depreciation per year = 1/5* x 100 = 20%

*as it is useful for five years

Hence double-depreciation value = 20% x 2 = 40%

It is calculated as depreciation rate x book value of asset at the beginning of the period

OR (Cost of Asset - Accumulation Depreciation) x Depreciation rate

Depreciation for Year 1 : 7000 x 40% = $2800

Accumulated Depreciation : $2800

Depreciation for Year 2 : (7000 - 2800) x 40% = $1680

Accumulated Depreciation: $2800 + $1680 = $4480

Depreciation for Year 3 : (7000 - $4480) x 40% = $1008

2. GAIN OR LOSS ON SALE OF ASSET

2.A. Straight-line depreciation :

Accumulated Depreciation at the end of Year 3 : $1300 x 3 = $3900

Cost of asset at the end of Year : $7000 - $3900 = $3100

Asset was sold for $2100 while its net book value was $3100. This means that the asset was sold for LESS than what it was worth and hence is a LOSS on sale of asset.

Gain/Loss on sale of asset : Sale Price - Net book value

Loss on sale : $2100 - $3100= ($1000)

2.B. Units of Production method :

Accumulated depreciation at the end of the Year 3 : $1550 + $1250 + $1700 = $4100

Cost of asset at the end of Year 3 : $7000 - $4500 = $2500

Asset was sold for $2100 while its net book value was $2500. This means that the asset was sold for LESS than what it was worth and hence is a LOSS on sale of asset.

Gain/Loss on sale of asset : Sale Price - Net book value

Loss on sale : $2100 - $2500= ($400)

2.C. Reducing balance method :

Accumulated depreciation at the end of Year 3 : $2800 + $1680 + $1008 = $5488

Cost of asset at the end of Year 3 : $7000 - $5488 = $1512

Asset was sold for $2100 while its net book value was $1512. This means that the asset was sold for MORE than what it was worth and hence is a GAIN/PROFIT on sale of asset.

Gain/Loss on sale of asset : Sale Price - Net book value

Gain on sale : $2100 - $1512= $588

3. INCOME STATEMENT

Income statement with gain/loss on sale of asset using straight line depreciation, units of production method and reducing balance method has been provided in attached tables 1, 2 and 3 respectively.

6 0

3 years ago

One of the main responsibilities employers have under OSHA is to:

Schach [20]

<span>Read and follow all health and safety postings;Follow safe work practices;Help reduce work hazards;Report all occupational injuries and illnesses;Report hazardous conditions;Cooperate during an OSHA inspection; and<span>Exercise rights under the OSH Act in a responsible manner.</span></span>

5 0

3 years ago

Fatima is struggling in her job and is experiencing increased dissatisfaction. She related to you that her manager has been unfa

Akimi4 [234]

Answer:

C

Explanation:

Affective component is the feeling a person has towards a situation that result from his/her belief about a person or situation.

For instance: a person who works hard and believes hard work earns promotion may feel anger or frustration when he or she works but is not promoted and will be affected in this situation.

This reflects Fatima feeling towards her manager when her colleague who deserved less promotion than she did was promoted, she was affected when this happened which is why she doesn't like her manager.

3 0

3 years ago