1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Effectus [21]
3 years ago
11

he following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures.T

otal assets $300,000Stockholders' equity—common 150,000Total stockholders' equity 200,000Sales revenue 100,000Net income 25,000Number of shares of common stock 6,000Common dividends 6,000MC: 199 (count)Preferred dividends 4,000What is the return on common stockholders' equity ratio for Benedict?a. 16.7%b. 14.0%c. 12.7%d. 10.5%
Business
1 answer:
ra1l [238]3 years ago
5 0

Answer:

b. 14.0%

Explanation:

NET INCOME  

Sales  $ 100.000

Net Income  $ 25.000

Preferred Stock  -$ 4.000

Net Income to Stockholders' equity—common $ 21.000   14%

Net Income to Stockholders         $ 21.000

                                                      ===========  =   14%

Stockholders' equity—common    $ 150,000

You might be interested in
How can companies increase return on common stockholders’ equity without increasing revenue?
Pani-rosa [81]
D) By reducing expenses you increase margins which means there is more money available for stockholders
4 0
2 years ago
Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $35,000,000 of five-year, 12% bon
nlexa [21]

Answer:

Cash proceeds is $37,702,607.23  

First premium amortization $214,869.64

Second premium amortization is $225,613.12

First year interest expense is $ 3,759,517.24  

Explanation:

The amount of cash proceeds from the bond issue is the pv of the bond using the pv formula,=-pv(rate,nper,pmt,fv)

rate is 10% yield to maturity divided 2 since interest is semi-annual i.e 5%

nper is 5 years multiplied by 2=10

pmt is the semi-annual interest payable by the bond i.e $35,000,000*12%*6/12=$2,100,000

fv is the face value of the bond at $35,000,000

=-pv(5%,10,2100000,35000000)

pv=$37,702,607.23  

The amount of premium to be amortized in first semi-annual interest payment:

Interest expense=$$37,702,607.23*10%/2=$1,885,130.36  

coupon interest=$35,000,000*12%/2=$2,100,000

Premium amortized=$2,100,000-$1,885,130.36  

premium amortized=$214,869.64  

The amount of premium to be amortized in second semi-annual interest payment:

interest expense=($37,702,607.23+$2,100,000-$1,885,130.36)*10%/2

                           =$1,874,386.88  

Premium amortized=$2,100,000-$1,874,386.88

premium amortized=$225613.12

Bond expense for the first payment= 37,702,607.23*10%/2  

                                                           =$1,885,130.362

Bond expense for the first payment=  37,487,737.59  *10%/2  

                                                           =$ 1,874,386.88  

First year bond interest expense= 1,874,386.88+1,885,130.362  

                                                      =$ 3,759,517.24  

                                                     

Find attached schedule in addition

Download xlsx
4 0
3 years ago
Juniper Co uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9750 of me
KatRina [158]

Answer:

D) Debit Accounts Payable $1500; Credit Merchandise Inventory $1500

Explanation:

The journal entry to record the merchandise return is shown below:

Account payable A/c Dr $1,500

                To Merchandise inventory A/c $1,500

(Being returned inventory is recorded)

For recording the returned inventory we debited the account payable and credited the merchandise inventory account so that the proper posting could be done

6 0
2 years ago
The inventory data for an item for November are: Nov. 1 Inventory 20 units at $19 4 Sale 10 units 10 Purchase 30 units at $20 17
kolezko [41]

Answer:

=  $490

Explanation:

<em>Under the </em><em>First-in-First-Out  </em>( FIFO ) <em>method of inventory valuation,  inventories are valued using the price of the earliest batch in stock until the batch is exhausted when the price of the next oldest batch is used and so on.</em>

Date     sale units       Workings                         Value

              10                    10 × $19                              190

               20        (10 × $19)+( 10 × $20)                  390

The cost o he merchandise = $190 + $390

                                             =  $490

8 0
3 years ago
On January 1, 20X5, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $1
umka2103 [35]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

4 0
2 years ago
Other questions:
  • The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution wi
    11·1 answer
  • ________ determines the criteria for supplier selection and adds and removes suppliers from the list of approved suppliers. The
    7·2 answers
  • Lounge Lizard, a website and mobile app design company for small businesses, receives the majority of its new customer leads fro
    15·1 answer
  • Mr. Smith wishes to retire in 16 years. When he retires he would like to have $300,000 in his bank account. Mr. Smith's bank pay
    12·1 answer
  • Which of the following is a regular outcome of being late to work
    10·1 answer
  • With a regressive tax system, as the level of income increases in an economy, the average tax rate will: 
A. Increase
B. Decreas
    15·1 answer
  • Products is a manufacturer of large flower pots for urban settings. The company has these​ standards:
    8·1 answer
  • Determine the type of credit that involves a set limit based on what a consumer pays up front.
    10·1 answer
  • What is our planet called?
    7·2 answers
  • A bank currently has $150 million in "hot money" deposits against which it wants to hold an 80 percent reserve and $90 million i
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!