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Lilit [14]
3 years ago
15

Abbott Corporation splits its common stock 4 for 1, when the market value is $40 per share. Prior to the split, Abbott had 50,00

0 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock__________.
a. remains the same.
b. is reduced to $2 per share.
c. is reduced to $2.50 per share.
d. is reduced to $10 per share.
Business
1 answer:
Yanka [14]3 years ago
7 0

Answer:

correct option is c. is reduced to $2.50 per share

Explanation:

given data

market value = $40 per share

common stock issued = $10

shares = 50000

to find out

After the split, the par value of the stock

solution

we know that splits  common stock 4 for 1 that mean the no of outstanding shares in the market now triple that is  each share held by an investor now there will 3

so after split price per share  will be here reduce by dividing 4

and overall value will be same

so Price is reduce here as

par value price = \frac{10}{4}

par value price reduce  = $2.50

so correct option is c. is reduced to $2.50 per share

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Bess [88]

Answer:

a. The Other comprehensive income for 2017  is $-11.2 million

b. The Comprehensive income for 2017 is $1,293.8 million

c. The Accumulated other comprehensive income at December 31, 2017 is $45.2 million

Explanation:

a. According to the given data the company incurred a loss of $11.2 million as an unrealized income from available-for-sale debt securities. It is the actual loss.

Therefore, other comprehensive income is (-$11.2) million.

b. In order to calculate the Comprehensive income for 2017 we would have to use the following formula:

Comprehensive income=Net income−Unrealised holding loss

=$1,305 million−$11.2million

=$1,293.8 million

​Therefore, comprehensive income for 2017 is $1,293.8 million

c.  In ordert to Calculate the accumulated other comprehensive income we would have to use the following formula:

Accumulated  comprehensive  income = Existing income−Unrealised holding loss

=$56.4million−$11.2million

=$45.2million

The Accumulated other comprehensive income at December 31, 2017 is $45.2 million

​

5 0
3 years ago
Gilberto's profit is maximized when he produces 3 shirts. When he does this, the marginal cost of the previous shirt he produces
rosijanka [135]

Explanation:

Profit is maximized at the production point of four tops. The disparity in net income and net expenditure is highest in this amount.

Another way of talking about this is to note that for the first 4 shirts that Gilberto makes, the marginal cost (MC) of making each shirt is smaller than the total revenue (MR) it generates from selling the shirt.

Beyond just the third shirt he makes per hour, the total cost of making the shirt is higher than the amount Gilberto receives; thus, opting to manufacture more than 4 shirts decreases Darnell's benefit.

3 0
3 years ago
In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12
IceJOKER [234]

Answer:

The correct answer is:

(1) $15,054

(2) $12,990

Explanation:

The required table is not given in the question. Please find below the attachment of the table.

Given:

Future value,

= $30,000

If discounting rate is 9%, the present value will be:

= Future \ value\times PV \ factor(9 \ percent, 8 \ years)

= 30000\times (\frac{1}{1.09} )^8

= 30000\times 0.5018

= 15,054 ($)

If discounting rate is 11%, the present value will be:

= Future \ value\times PV \ factor(11 \ percent, 8 \ years)

= 30000\times (\frac{1}{1.11} )^6

= 30000\times 0.433

= 12,990 ($)

8 0
3 years ago
To get to free cash flows from accounting earnings, what is the formula used?
kotegsom [21]

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7 0
3 years ago
Titon Sports, which produces footballs, has two departments: cutting and stitching. Footballs that have undergone the cutting pr
zhenek [66]

Answer:

We find the equivalent units for both Weighted Average Method and FIFO separately for cost  calculations . These are given along as required.

Explanation:

Titon Sports

Equivalent Units

Weighted Average Method

Particulars         Units       % of Completion              Equivalent Units

                                      Materials --Conversion    Materials --Conversion

Completed and

Transferred     52,000    100%         100%               52,000     52,000

Ending work

<u>in process      21,500        0%           20%                Zero         4300        </u>

<u>Equivalent Units                                                   52,000       56,300   </u>

Particulars         Units       % of Completion              Equivalent Units

                                            Transferred In                  Transferred In

Completed and

Transferred     52,000               100%                              52,000    

Ending work

<u>in process      21,500                  100%                           21,500</u>

<u>Equivalent Units                                                             73500</u>

<u>Particulars </u>             Transferred In     Materials     Conversion    Total

                                         Costs

Beginning WIP           $ 45,360           $0                  $17,660

<u>Total costs added     $154,560         $28,080           $89,310</u>

<u>Total Costs              199920            $28,080           106970    </u> <u>$334970</u>

b. Conversion cost per equivalent unit during March

                  Total Conversion Costs/ Total Equivalent Units Conversion

               =   106970/56,300 = $1.9 per Equivalent Unit

Materials cost per equivalent unit during March

 Total Materials Costs/ Total Equivalent Units Materials

               =   28080/52000 = $ 0.54 per Equivalent Unit

Transferred In cost per equivalent unit during March

Total Transferred In Costs / Total Transferred In Units

                 = 199920 / 73500 = 2.72

C. Cost Assigned To Transferred Out Goods $ 268,320

Materials = 52,000*0.54= $ 28080

Conversion = 52,000* 1.9=  98800

Transferred in Units = 2.72 * 52000= 141440

Cost Assigned To Ending Work In Process $66650

Conversion = 4300* 1.9=  8170

Transferred in Units = 2.72 * 21500= 58,480

C. Total Costs Assigned = Transferred Out + Ending = <u>$334970</u>

d.  Conversion cost assigned to the ending work in process: $8170

Conversion = 4300* 1.9=  8170

<em>We see the difference between the weighted average and FIFO method is that the FIFO method only accounts for the current period costs not the total the costs.Where as the weighted method includes all the costs from preceeding department and also current costs.</em>

e.Titon Sports

Equivalent Units

FIFO Method

Particulars         Units       % of Completion              Equivalent Units

                                      Materials --Conversion    Materials --Conversion

Completed and

Transferred     52,000    100%         100%               52,000     52,000

Ending work

in process      21,500        0%           20%                Zero         4300  

Less

<u>Beg. WIP       17500        0%            60%              Zero           10500</u>

<u>Equivalent Units                                                   52,000       45,800 </u>

Particulars         Units       % of Completion              Equivalent Units

                                            Transferred In                  Transferred In

Completed and

Transferred     52,000               100%                              52,000    

Ending work

in process      21,500                  100%                           21,500

Less

<u>Beg. WIP       17500                  100%                             17500 </u>

<u>Equivalent Units                                                             56000</u>

<u>f. </u>Materials cost per equivalent unit during March (FIFO)

 Total Materials Costs/ Total Equivalent Units Materials

               =   28080/52000 = $ 0.54 per Equivalent Unit

g. Cost Assigned To WORK In Process (FIFO)  $ 8385

Conversion cost per equivalent unit during March

                  Total Conversion Costs/ Total Equivalent Units Conversion

               =  89310/ 45,800 = $1.95 per Equivalent Unit

Conversion = 4300* 1.95=  $ 8385

h. Cost Assigned To Transferred Out Goods $ 273,000

Materials = 52,000*0.54= $ 28080

Conversion = 52,000* 1.95=  101,400

Transferred In cost per equivalent unit during March

Total Transferred In Costs / Total Transferred In Units

= 154560 / 56,000 = 2.76

Transferred in Units Costs = 2.76 * 52000= 143520

8 0
3 years ago
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