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valentinak56 [21]
3 years ago
6

Olivia contracts to buy a refrigerator from a Prairie State Appliance store with the price to be paid in monthly installments. L

ater, Olivia files a suit against Prairie State, claiming that their contract is so unfair and one-sided that it would be unreasonable to enforce it. Olivia is asserting​:
Business
1 answer:
Alex_Xolod [135]3 years ago
6 0

Answer:<em> The doctrine of unconscionability </em>

Explanation:

Here, in this particular case Olivia is asserting <em>unconscionability  </em>which is a doctrine under contract law<em>. </em>Unconscionability often referred to as unconscionable conduct is the doctrine under the discipline of contract law which tends to describes the terms that are known to be extremely unfair, or at times overwhelmingly biased in the favor of a group or individual that tends to have higher haggling power, which are known to be contrary to the good moral science.

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Mike’s Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. I
Stolb23 [73]

Answer:

Mike's Motors Corp.

Cash Budget for July, August, and September:

                                          July           August        September       Total

Beginning balance        $32,000     $30,000         $30,000       $32,000

Cash receipts                  83,000      109,000          148,000       340,000

Bank borrowings            26,000           0                   0                  26,000

Total receipts                 141,000       139,000         178,000      $398,000

Cash Payments              111,000        97,900          125,400        334,300.00

Interest                                                    520                 308.40          828.40

Loan repayment                                 10,580            15,420          26,000.00

Total payments              111,000      109,000            141,128.40    361,128.40

Minimum cash balance 30,000       30,000             36,871.60     36,871.60

Explanation:

a) Data and Calculations:

            Cash  Receipts   Cash  Payments

July            $ 83,000        $ 111,000

August        109,000           97,900

September 148,000          125,400

Minimum cash balance = $30,000

Interest on borrowings = 2% per month

July ending:

Borrowing to maintain minimum cash balance = $26,000

Interest for August = $520 ($26,000 * 2%)

August ending:

Loan balance = $15,420 ($26,000 - $10,580)

Interest for September = $308.40 ($15,420 * 2%)

8 0
3 years ago
Trailers R Us​ Company, which uses an activitybased costing​ system, produces travel trailers and boat trailers. The company all
AleksAgata [21]

Answer:

Boat trailers= $96,200

Explanation:

Giving the following information:

Travel trailers Boat trailers:

Budgeted units to be produced ​2,050 ​3,200

Budgeted number of setups 320 520 = 840

Total budgeted setup costs for the year are​ $155,400.

<u>First, we need to calculate the predetermined activity rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Setup= 155,400/840= $185 per setup

<u>Now, we can allocate costs to boat trailers:</u>

Boat trailers= 185*520= $96,200

8 0
3 years ago
Considering contributing $1,000 to their church. This contribution will bring their total itemized deductions to $2,000. Assumin
mafiozo [28]

Answer:

b. $150

Explanation:

Standard deduction refers to deduction available to an individual at a flat rate say 30%.Whereas in itemized deductions, an individual can claim deductions at different rates on different items.

Usually itemized deductions are more beneficial to an individual and in case tax saving in these cases exceeds total standard deductions, itemized deductions should be preferred.

In the given case, contribution of $1000 to church shall amount to a deduction. Since the tax rate applicable to the individual is 15%, the savings in tax shall amount to 15% of $1000 i.e $150.

4 0
3 years ago
Given the following financial structure for Company S for all of 2016:
Mila [183]

Answer:

Explanation:

A.)

The Basic EPS can be determined by using the formula:

\mathtt{Basic \  EPS = \dfrac{Net \ income \ attributabe \ to\  common \ stock \ holders }{\text{common stock outstanding throughout the year}} }

\text{Given Net income = \$2,600,000}

\text{Net income available for common stock holders   = }\text{ Net income given less  dividend}

\text{ to preferred holders of stock}

\mathtt{=$2,600,000 - $100 \times 50000\times 6\%}

=\$2,300,000

\text{Common stock} = $800,000

∴

\mathbf{Basic  \ EPS = \dfrac{\$2,300,000}{800,000} }

\mathbf{Basic  \ EPS = \$2.88 \ per \ common \ stock}

B.)

The calculations for the numerator and denominator effect are:

\text{Calculation of the effect on incremental EPS}

Convertible on preferred stock  \mathtt{=\dfrac{500,000 \times 100 \times 6\%}{50000\times 5}}

=1.20

Convertible Bond =\dfrac{500,000 \times 8\%\times 70\%}{\dfrac{500,000}{1000\times 20}}

= 2.80

Stock options = \dfrac{0}{100,000- (100,000\times \dfrac{60}{80})}

= 0

Determination of the numerator & denominator effect for each convertible securities shown above are:

                            Numerator (N)   Denominator (D)  Dilution index = N/D

Net income          $2,600,000

Less: Preferred    $300000

Dividend

<em>Common stock A</em>

<em>Net income          </em>$2,300,000<em> </em>    800,000                      2.875

Add: Stock

Options (B)                  0                 25000

Total (C) = (A + B)  $2300000     825000                       2.788

Add: Convertible

Bonds (D)               428000          10000

Total (E) = (C+D)    $2328000      835000                       2.787

Add: Convertible

Preferred Stock (F) $300000     250000

Total (E) + (F)          $2628000    1085000                      2.422

C.)

Particulars                Dilutive Index       Rank (most dilutive is 1.)

Stock Option              2.788                              1

Convertible Bonds     2.787                              3

Preferred Stock          2.422                             2

D.)

From above, the convertibles are diluted EPS (DEPS)

\text{ DEPS =Net income available  common stockholders + net tax dividend on convertible securities}÷ \text{weighted average no. of common shares + effect of convertible stock + convertible stock options}

\text{DEPS (1{st} stage) for only common stock}= \dfrac{2300000}{800000} = \$2.88}

\text{DEPS (2{st} stage)with \ stock \ options}= \dfrac{2300000+0}{800000+25000} = \$2.788}

\text{DEPS (3{st} stage)with \ stock \ options \& preferred \ stock }= \dfrac{2300000+300000+0}{800000+250000+25000} = \$2.42}

3 0
3 years ago
Newland and Palermo form a partnership. Newland contributes land with a book value of $50,000 and a fair value of $60,000. Newla
katrin2010 [14]

Answer:

$97,000

Explanation:

The computation of capital account balance is shown below:-

capital account balance = Fair market value of Land + Equipment fair market value - Mortgage on the land

Capital account balance = $60,000 + $57,000 - $20,000

= $97,000

Therefore for computing the balance of capital account we simply added the fair market value of land and equipment fair market value and deduct the mortgage on the land and we ignore the book values as its not relevant to compute the balance of capital account.

7 0
4 years ago
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