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Elan Coil [88]
3 years ago
15

Citynet, LLC, established an employee incentive plan 'to enable the Company to attract and retain experienced individuals.' The

plan provided that a participant who left Citynet's employment was entitled to 'cash out' his or her entire vested balance. (When an employee's rights to a particular benefit become vested, they belong to that employee and cannot be taken away. The vested balance refers to the part of an account that goes with the employee if he or she leaves the company.)When Citynet employee Ray Toney terminated his employment, he asked to redeem his vested balance, which amounted to $87,000.48. Citynet refused, citing a provision of the plan that limited redemptions to no more than 20 percent annually. Toney filed a suit in a West Virginia state court against Citynet, alleging breach of contract. Citynet argued that the plan was not a contract but a discretionary bonus over which Citynet had sole discretion.
Was the plan a contract? If so, what was the consideration?
Business
1 answer:
Gala2k [10]3 years ago
6 0

Answer:

There is a contract but a unilateral one.

Explanation:

There is a contract but a unilateral one.  

Employee incentive plan “to enable the Company to attract and retain experienced individuals" is an offer ,to which the extended stay of Toney is the acceptance. And, naturally, Citynet is obligated to fulfill the "promise" promised. The plan is very much a contract with the above said offer and its acceptance that makes the promise binding and legally enforceable..  

Consideration here is Toney's staying on the job.

On stay,the plan  provided “cash out” of his or her entire vested balance ie.when an employee’s rights to a particular benefit become vested, they belong to that employee and cannot be taken away. The vested balance refers to the part of an account that goes with the employee if he or she leaves the company.

Nowhere, the amount to vest on voluntary termination , is left to the sole discretion of Citynet .

As such in the above case, Toney is right in suing Citynet for breach of contract as all the essential elements of a contract ,namely, valid offer and its acceptance and a legally acceptable consideration --are present to make the incentive plan and the promises contained therein, binding and enforceable on Citynet .

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Debora [2.8K]

Answer:

Kanban container size = 73

Number of kanbans needed = 5

Explanation:

Kanban container size (Q):

Q = SQRT [(2 x D x S) / H x (1 - d/p)]

where,

D = Annual demand  

S = Setup cost

H = Holding cost

d = Daily usage

p = Daily production

Putting the given values in the above formula,

CONTAINER SIZE = SQRT ((2 * ANNUAL DEMAND * SETUP COST) / (HOLDING COST * (1 - (DAILY USAGE / DAILY PRODUCTION))))

Q = SQRT [(2 x 4,000 x $30) / $125 x (1 - 16/25)]

Kanbans container size = 73 units  (Rounding off to the nearest whole number)

NUMBER OF KANBANS = DEMAND DURING LEAD TIME + SAFETY STOCK / SIZE OF CONTAINER

K = ((16 * 16) + (4 * 25) / 73 = 5

4 0
3 years ago
Swinnerton Clothing Company's balance sheet showed total current assets of $3,300, all of which were required in operations. Its
Zanzabum

Answer:

c. $2,580

Explanation:

Calculation for What was its net operating working capital that was financed by investors

Current assets $3,300

Less Accounts payable ($575)

Less Accrued wages and taxes ($145)

Net operating working capital $2,580

($3,300-$575-$145)

Therefore What was its net operating working capital that was financed by investors will be $2,580

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3 years ago
he Presley Corporation is about to go public. It currently has aftertax earnings of $7,000,000, and 2,000,000 shares are owned b
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Answer:

Missing question is "<em>a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Net proceeds </em>

<em>b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share</em>

<em>c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share "</em>

a. Net proceeds = Shares issued * Share price*(1-0.04) - Direct cost

Net proceeds = 500,000 * $25*(1-0.04) - $250,000

Net proceeds = 500,000*$24  - $250,000

Net proceeds = $12,000,000 - $250,000

Net proceeds = $11,750,000

b. EPS = Earnings / Shares

EPS = $7,000,000 / 2,000,000 shares

EPS = $3.50 per share

c. EPS = After tax earnings / Total shares

EPS = $7,000,000 / (2,000,000 + 500,000)

EPS = $7,000,000 / 2,500,000 shares

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3 0
3 years ago
At December 31, 2019, Obermeyer Imports reported the following information on its balance sheet.
Vinvika [58]

Answer:

Obermeyer Imports

a) Journal Entries to record each transaction:

1. Debit Accounts Receivable $2,600,000

Credit Sales Revenue $2,600,000

To record the sale of goods on account.

2. Debit Sales Returns $45,000

Credit Accounts Receivable $45,000

To record the return of goods on account.

3. Debit Cash Account $2,250,000

Credit Accounts Receivable $2,250,000

To record collections from customers.

4. Debit Uncollectible Expenses $10,000

Credit Accounts Receivable $10,000

To record the write-off of accounts deemed uncollectible.

5. Debit Cash Account $3,000

Credit Uncollectible Expenses $3,000

To record the recovery of bad debts previously written off.

b) T-accounts:

Accounts Receivable

Accounts Titles            Debit          Credit

Beginning balances $250,000

Sales Revenue        2,600,000

Sales Returns                                    45,000

Cash Account                              2,250,000

Uncollectible Expenses                     10,000

Ending Balances                             545,000

Total                     $2,850,000 $2,850,000

Allowance for doubtful accounts

Accounts Titles            Debit          Credit

Beginning balances                    $15,000

Uncollectible expense                    7,000

Ending balances       $22,000

c) Journal Entry

Debit Uncollectible Expense $7,000

Credit Allowance for doubtful accounts $7,000

To record the allowance for uncollectibles.

Explanation:

a) Data and Calculations:

Accounts receivable $250,000

Less: Allowance for doubtful accounts 15,000

b) The allowance for Doubtful Accounts will increase by $7,000 to $22,000.  As a result, the Uncollectible Expense will be debited with $7,000 while the Allowance for doubtful accounts will be credited with $7,000.  This brings the total of Allowance for Doubtful Accounts to $22,000 in accordance with the new estimate based on the aging of accounts receivable.

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3 years ago
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Yuki888 [10]
A concrete step

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