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3 years ago

Ballpark has shares of par common stock outstanding. Ballpark announces a stock split of for1. What is the effect of the split?

Business

1 answer:

Harman [31]3 years ago

6 0

Answer:

The answer is 'it increases the number of shares outstanding'

Explanation:

Stock split increases the number of shares outstanding. It causes dilution of earnings per share.

For example, ABC Inc. has 50,000 shares outstanding and it announces a stock split of 3-for- 1.

This means that any shareholder that has 1 will exchange that 1 share for 3 shares. So at the end of the stock split the total number of shares outstanding will be 150,000 shares (50,000 x 3)

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Bluestone Company had three intangible assets at the end of the current year:

Dimas [21]

Answer:

Bluestone Company

1. Acquisition cost of each intangible asset:

Patent $3,200

Trademark = $0

Licensing Rights = $70,000

2. Amortization for the current year ended December 31:

Amortization Expenses:

Patent = $200 ($3,200/16)

Trademark = $7,500 (expensed in full)

Licensing Rights = $14,000 ($70,000/5)

3. BLUESTONE COMPANY

Income Statement (partial)

For the year ending December 31

Amortization Expenses:

Patent $200

Licensing Rights $14,000

Trademark expense $7,500

BLUESTONE COMPANY

Balance sheet (partial)

At December 31

Intangibles:

Patent $3,200

Acc. Amortization 200 $3,000

Licensing Rights $70,000

Acc. Amortization 14,000 $56,000

Explanation:

a) Data and Calculations:

a. Purchased patent on January 1 for $3,200 Estimated life 16 years

b. Internally developed trademark is expensed: $7,500

c. Purchasing Licensing Rights on January 1 for $70,000 for 5 years

7 0

2 years ago

According to an SEC investigation, Computer Associates, one of the world's largest software companies, backdated contracts to bo

professor190 [17]

The statement, "According to an SEC investigation, Computer Associates, one of the world's largest software companies, backdated contracts to boost the company's reported revenues. This is not prescribed as an ethical business practice." is True .

Option a

<u> Explanation: </u>

To thrive in the competitive world of business one has to have ethics in doing business. By doing ethical practices in the business it will boost the image of the company before the customer and it will be helpful for them to compete in the market.

From the above statement even though it is the world's largest software company it has backdated the projects contracts period to show better performance in the revenues.

Even though the project are genuine but the moral responsibility in reporting revenues to the investors take taken a dent by doing an unethical thing.

6 0

2 years ago

Which of the following is the term used to describe costs which change day to day, week to week and month to month based on busi

sergij07 [2.7K]

Answer:

Variable costs

Explanation:

Variable costs is the term that describes business costs that vary with the production level. An increase in output increases the variable costs. Variable costs are progressive and increase or decrease with the production volume.

Examples of variable costs include raw material and distribution costs. Variable costs contrast with fixed costs, which remain constant throughout a financial period.

7 0

2 years ago

which of the following best describes the kinds of decisions that result from using cost-benefit analysis

ehidna [41]

With the absence of the options to choose from, lets look at general results of using cost-benefit analysis.

Explanation:

using cost-benefit analysis is a strategic way of making decisions based on cost and benefit solely.

Ideally any investment or strategic decision to be made by an institution needs a cost-benefit analysis.

This is done by listing all the projected resources needed to take up the strategic objective and costed. After which another list is made of the potential benefit that is likely to come to the organisation.

When the two is compared we say <em>you are making cost-benefit </em>analysis.

More often without secondary reasons, the option with the highest benefit over cost is chosen.

This cost and benefit analysis are made both qualitatively and quantitatively.

Quantitatively methods such as NPV are used.

#learnwithbrainly

7 0

3 years ago

In February of the current year, Paul and Jean, a married couple, cashed a qualified Series EE savings bond they bought in Novem

Sergeeva-Olga [200]

Answer:

Explanation:

Calculation of amount of interest income Paul and Jean can exclude = $I \frac{E}{P+I}$

where I = interest received, E = educational expenses, P = principle.

Proceeds received $7,132

Principle $5,000

Interest $2,132

Qualified Higher Educational expenses $4,000

=2132*(4000/(5000+2132))= $1,195.74

Answer is 1,195.74 exclusion

4 0

2 years ago

Ballpark has shares of par common stock outstanding. Ballpark announces a stock split of for1. What is the effect of the​ split?

Ballpark has shares of par common stock outstanding. Ballpark announces a stock split of for1. What is the effect of the split?