Answer:
20,500
Explanation:
The minimum price at split off is the benefit of further processing less the cost of this processing.
product X further process sales value: 35,000
cost of further processing: (15,000)
minimum accepted price at split-off point: 20,500
The reasoning is as follow: the company will sale at leat to break even.
so the product at split off will be sold at cost.
to get 35,500 worth of goods we must add up to 15,000 dollars
so the initial cost is 35,500 - 15,000 = 20,500
The net income is $1.95 million, this is how we calculate this;
Sales last year is $14 million
Goods sold cost = $8 million
Depreciation expense = $2 million and debt is $1 million.
So the amount left = $14 million - ($8million + $2 million + $1 million ) = 14 - 11 = 3 million
tax rate is 35 %, so 35% of 3 million = 0.35 x 3 = $1.05 million
Net income = $3 million - $1.05 million = $1.95 million
Answer:
$125,026
Explanation:
Common Shares 3,600
Fair value <u> $20</u>
Total market value of common stock $72,000
Preferred shares 5,600
Fair value <u> $20</u>
Total market value of preferred stock $112,000
Lump Sum amount $205,400
Amount of proceeds should be allocated to the preferred stock = 205,400 * (112,000 / (72,000 + 112,000) ) = $125,026
Answer: E) Cash
Explanation:
The Supplier should be most concerned with the Cash Ratio when granting credit. The Cash Ratio measures the amount of Cash in addition to the amount of Cash equivalent assets that the company has against it's current Liabilities in other to see if the company can be able to pay off it's Current Liabilities with it's current Cash and Cash Equivalents.
The Supplier will therefore be concerned with this ratio to see if the company is indeed able to pay back within 10 days before they can be able to grant credit.
The answer that would best complete the given statement above would be the term "billion". <span>Businesses in America will spend approximately $600 BILLION on h</span><span>ardware, software, and telecommunications equipment in 2015. Hope this answers your question. Have a great day ahead!</span>
