A document's format is:

At September 1, 2014, Promise Ring Co. reported stockholders' equity of $136,000. During the month, Promise Ring generated reven

yawa3891 [41]

Answer: $153,000

Explanation:

Stockholders' equity, also known as shareholders equity, is the book value of the organisation. In other words it is the assets left over after all liabilities have been deducted (Equity = Assets - Liabilities). This equity consists of 2 elements: The ordinary share equity (capital), which is the montary value of the shares issued by an organisation, and retained earnings, which is the amount of income left over after dividends have been paid out. In this case the stockholders equity is calculated as follows:

Opening balance: $136,000

Revenue for September: +$38,000

Expenses: - $21,000

Total: $153,000

Purchased equipment of $5,000 is not included in this figure, as it falls under assets and is accounted as such. Once accounted, then the total assets figure will be used to deduct liabilities from, and the balance must equal the shareholders equity ($153,000) above.

8 0

4 years ago

g efg manufacturing has a product that sells for $15 per unit, and the marginal cost is $5.00. a. compute the lerner index for e

Hitman42 [59]

Answer:

(a) 0.667 (b) The Lerner index helps in estimating of the market power of a firm. it measures the percentage markup that a firm is able to charge.

The conditions where this market power last in the long-run are; the pricing power, Factor mobility, Barrier to entry or exist.

Explanation:

Solution

Given that:

(A) The Lerner index is computed below:

Lerner index = (P-MC)/P

Thus,

($15-$5.00)/$15

=10/15

= 0.667

(B) The Lerner index assist in measuring of the market power of a firm. it measures the percentage markup that a firm is able to charge.

Index spans from a low value (0) to a higher value of (1)

When a firm has a higher value of index, it is able to charge over it;s marginal cost and thus has a greater monopoly power

Other conditions where market power last in the long run is as follows:

The pricing power
Factor mobility
Barrier to entry or exist

6 0

4 years ago

Sun City issues $50 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A Portion of

inna [77]

Answer:

1. Bonds are issued at a premium.

2. $55,338,768.

3. $50,000,000

4. 8%

5. 7%

6. $74,661,232

Explanation:

The well arranged table is as below for clarity:

Date Cash Paid Interest Decrease in Carrying Value

Expense Carrying Value

01/01/2021 $55,338,768

06/30/2021 $2,000,000 $1,936,857 $63,143 55,275,625

12/31/2021 2,000,000 1,936,857 65,353 55,210,272

1. Face Value of Bonds = $50,000,000

Issue Value of Bonds = $55,338,768

Issue value of bonds is higher than its face amount; therefore, bonds are issued at a premium.

2. Original issue value of bonds is $55,338,768.

3. Face amount of the bonds is $50,000,000.

4. Semiannual interest rate = Cash paid / Face value of bonds

Stated semiannual interest rate = $2,000,000 / $50,000,000 = 0.04 =4%

Stated annual interest rate = 4% × 2 = 8%

The stated annual interest rate is 8%

5. Market semiannual interest rate = Interest expense on 6/30/21 / Carrying value on 1/1/2021

Market semiannual interest rate = $1,936,857 / $55,338,768

Market semiannual interest rate = 0.035 = 3.50%

Market annual interest rate = 2 × Market semiannual interest rate

Market annual interest rate = 2 × 0.035 = 7%

The market annual interest rate is 7%

6. Tenure of bonds = 20 years

Number of semiannual payment = 2 * Life of bonds = 2×20 = 40

Total cash paid = Number of semiannual payment × Semiannual interest payment + Maturity value of bonds

Total cash paid = 40 × $2,000,000 + $50,000,000

Total cash paid = $130,000,000

Total cash paid for interest = Total cash paid - Issue value of bonds

Total cash paid for interest = $130,000,000 - $55,338,768

Total cash paid for interest = $74,661,232

The total cash paid for interest assuming the bonds mature in 20 years is $74,661,232.

6 0

3 years ago

Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s t

posledela

Answer:

Based on the DuPont equation and given information, ROE of Harrington Inc is 13.818%.

Explanation:

We have to find the total equity and total debt of Harrington Inc in order to apply the DuPont equation for finding ROE because net income, sales of Harrington Inc. are already given.

- To find Harrington Inc's total debt, apply the Debt-to-capital formula: The Harrington Inc's total debt/The Harrington Inc's total capital = 45% => Harrington Inc's total debt = The Harrington Inc's total capital * 45% = $250,000 x 45% = $112,500;

- To find Harrington Inc's total equity, apply the accounting equation Asset = Liabilities + Owner's Equity: The Harrington Inc's total equity = The Harrington Inc's total asset - The Harrington Inc's total debt = $250,000 - $112,500 = $137,500;

- Using the Dupont equation, calculate the ROE as followed:

(NI/Sales)* (Sales/ Total assets) * (Total assets/ Total common equity) = (19,000/325,000) * ( 325,000/ 250,000) * (250,000/137,500) = 13.818%.

- Thus, the ROE = 13.818%.

5 0

4 years ago

Which of these is an effective way of guiding, modifying, and disciplining a child?

bezimeni [28]

B.
Because the caregiver has set both clear and consistent rules, which allows the child to know what is expected of them, and allows the child to adjust their behavior to fit the caregivers expectations. Hope this helps!

5 0

4 years ago