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3 years ago

Before a three-for-one stock split, the shares outstanding were 5,000 shares at $12 par.

Business

1 answer:

Artemon [7]3 years ago

6 0

After the three is to one split, for every one old share, there will be three new shares.

So number of new shares = 5000*3 = 15,000 shares

Since the number of shares increased three fold, the price per share will decrease by three fold.

So the price per share after split = 12/3 =$4

So, after the split, there will be 15,000 shares at $4 per share

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. Ellen has a thirty-year mortgage with level monthly payments. The amount of principal in her 82nd payment is $259.34, and the

Mila [183]

Answer:

Explanation:

See attached file for answer

7 0

3 years ago

Managers of a discount store chain are considering whether to add a new auto service department. In reaching this decision, the

pishuonlain [190]

Answer:

Both direct and indirect costs

Explanation:

Direct costs refer to those costs which can be directly related to and identified with a production activity. These costs often vary with the production level i.e these costs are usually variable in nature. These are usually factory costs. Examples of direct costs are, direct material, direct labor, worker wages etc.

Indirect costs are those costs which are incurred for multiple activities. Such costs cannot be identified and applied to one activity alone. Office expenses, rent for the whole building, utility expenses etc comprise examples of indirect costs.

In the given case, managers of a discount store chain are considering addition of a new auto service department. The addition of such a department will incur both direct and indirect costs in the form of wages, utilities, rent, etc. Thus, the managers need to consider both direct and indirect costs.

8 0

3 years ago

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $17.00

Vsevolod [243]

Answer:

$303,072 - The Question is altered by the Students, so the options given are not correct.

Explanation:

In relevant cost the only cost relevant is the variable cost not the fixed costs. So differential cost would be the difference of the cost of purchasing and the cost of making the product at home, excludin the fixed cost.

Differential cost = Cost of purchasing Less Cost of making at home

Cost of purchasing one unit is $17 which is variable cost. Likewise the cost of making the part at home is $9 which is also 100% variable cost. So by putting values, we have:

Differential cost = 37,884 Units * $17 - 37,884 Units * $9 = $303,072

8 0

3 years ago

College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 00

Rus_ich [418]

Answer:

College Logos

Cost of goods sold, inventory, and purchases budget for the months of October and November:

October November

Sales $ 2,240,000 $ 2,379,000

Cost of goods sold 60% 1,344,000 1,427,400

Gross profit, 40% of sales $896,000 $951,600

Inventory Budget:

Ending Inventory $626,600 $639,110

Beginning Inventory $606,810 $626,600

Purchases Budget:

Ending Inventory $626,600 $639,110

Cost of goods sold 1,344,000 1,427,400

Cost of goods available for sale $1,970,600 $2,066,510

less Beginning Inventory $606,810 $626,600

Purchases $1,363,790 $1,439,910

Explanation:

a) Data and Calculations:

September October November December

Sales $ 2,009,000 $ 2,240,000 $ 2,379,000 $ 2,520,000

Cost of goods

sold 60% 1,205,400 1,344,000 1,427,400 1,512,000

Gross profit $803,600 $896,000 $951,600 $1,008,000

Ending Inventory $606,810 $626,600 $639,110 $651,800

Beginning Inventory $606,810 $626,600 $639,110

Purchases:

Ending Inventory $606,810 $626,600 $639,110 $651,800

Cost of goods

sold 1,205,400 1,344,000 1,427,400 1,512,000

Cost of goods available

for sale $1,812,210 $1,970,600 $2,066,510 $2,163,800

less Beginning Inventory $606,810 $626,600 $639,110

Purchases $1,363,790 $1,439,910 $1,524,690

3 0

3 years ago

Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserv

lapo4ka [179]

Answer:

a) First Main Street Bank's T-account (before the bank makes any new loans) will look as follows:

<u> Assets | Liabilities </u>

Reserves $1,800,000 | Deposits $1,800,000

b) The effect of a new deposit on excess and required reserves when the required reserve ratio is 25% are as follows:

Amount Deposited (Dollars) = $1,800,000

Change in Excess Reserves (Dollars) = $1,350,000

Change in Required Reserves (Dollars) = $450,000

Explanation:

a) Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans)

A deposit of $1,800,000 by Yakov into his checking account at First Main Street Bank will lead to the creation of both an asset and a liability for First Main Street Bank.

The reserves on the asset side of the T-account of First Main Street Bank will therefore increase by $1,800,000. This gives the bank the opportunity to able to give loan to its other customers from the additional reserves.

On the other hand, the deposit of $1,800,000 by Yakov will be recorded as a demand deposit on the liability side of the T-account of First Main Street Bank. This is because it is possible for Yakov to withdraw his deposit at any time.

This transaction will therefore be reflected as follows:

<u> Assets | Liabilities </u>

Reserves $1,800,000 | Deposits $1,800,000

b) Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 25%.

Note: See the attached excel file to see how the table will actually look.

The required reserve ratio of 25% implies that First Main Street Bank is required by law to hold 25% of the new reserves which in this case is the initial deposits from Yakov.

By calculating this, 25% of $1,800,00 is $450,000 and it indicates an increase of $450,000 in the required reserve of First Main Street Bank.

After deducting 25% from 100%, we have 75% left. And 75% of $1,800,000 is $1,350,000. This $1,350,000 is the excess reserves that First Main Street Bank can use to give loans to other customers.

The breakdown is therefore as follows:

Amount Deposited (Dollars) = $1,800,000

Change in Excess Reserves (Dollars) = 75% * $1,800,000 = $1,350,000

Change in Required Reserves (Dollars) = 25% * $1,800,000 = $450,000

Download xlsx

5 0

3 years ago