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katrin2010 [14]
3 years ago
11

Alpha Industries stock sold for $39 a share at the beginning of the year. During the year, the company paid a dividend of $3 a s

hare and then ended the year with a stock price of $37. The change in the stock price is best described as a:
Business
1 answer:
nadezda [96]3 years ago
8 0

Answer: c. capital loss.

Explanation:

A capital loss refers to a scenario where the price of a security falls below the price at which it was purchased. This is what happened to the Alpha Industries stock above as the price dropped from $39 to $37 which led to a capital loss of $2.

The dividends paid seem to outweigh the capital loss but we cannot be certain of this unless we know the tax rate being applied to the dividends and because these are usually high, the after tax dividends might have been lower the capital loss of $2.

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Five individuals organized Miami Music Corporation on January 1. At the end of January 31, the following monthly financial data
s344n2d4d5 [400]

Answer:

a. Profit(loss) = Total revenue - Total expenses

= 131,000 - 90,500

= $41,000

The company did in fact generate<u> profit of $41,000 </u>and this can be shown from the Income Statement which is where profit or loss is calculated.

b. A company uses its assets to pay off its liabilities so if the liabilities are less than the assets then the company is capable of paying off its liabilities:

Assets = Cash + Accounts Receivable + Supplies

= 30,800 + 25,300 + 40,700

= $96,800

Liabilities are just the Accounts Payable of $25,700.

<em>Liabilities are less than Assets so Miami Music does indeed have sufficient resources to pay its liabilities. </em>

This information comes from the <u>Balance Sheet</u> which is where assets and liabilities are shown.

7 0
3 years ago
A cement manufacturer has supplied the following data: Tons of cement produced and sold 275,000 Sales revenue$979,000 Variable m
tresset_1 [31]

Answer:

65%

Explanation:

Given that

Sales = $979,000

Variable manufacturing expense = $232,000

Variable selling and administrative expense = $110,650

The computation of contribution margin ratio is shown below:-

Contribution margin ratio = (Sales - Variable manufacturing expense - Variable selling and administrative expense) × 100 ÷ Sales

= ($979,000 - $232,000 - $110,650) × 100 ÷ $979,000

= ($979,000 - $342,650) × 100 ÷ $979,000

= $636,350 × 100 ÷ $979,000

= 65%

3 0
3 years ago
FSU's bonds have a face value of $1,000 and are currently quoted at 867.25. The bonds have a coupon rate of 6.5 percent. What is
Andrews [41]

Answer:

the current yield is 7.49%

Explanation:

The computation of the current yield on the bond is shown below:

The current yield is

= Annual coupon payments ÷ Bond price

= ($1,000 ×6.5)  ÷  $867.25

= $65 ÷  $867.25

Hence, the current yield is 7.49%

4 0
3 years ago
If employees are to be empowered to truly make a difference, they must have the power to make _____ decisions.
solong [7]

Answer:

substantive.

Explanation:

Substantive decisions in a company are those that will directly influence organizational results.

In centralized organizations, decision-making processes are essentially taken at the top of the hierarchy, it is only the leader who makes important company decisions.

In a decentralized organization, however, there is greater flexibility, which consists of integrating the decision-making process at all hierarchical levels, as it is believed that there is a reduction in the response time of the decision, greater understanding of the problem by employees who are experiencing it and motivate them and increase their job satisfaction.

7 0
3 years ago
Horace Company manufactures a professional-grade vacuum cleaner and began operations in 2020. For 2020, Horace budgeted to produ
Paladinen [302]

Answer:

Horace Company

1. 2020 Income Statement using variable costing

Sales revenue                      $7,992,000

Variable Cost of goods sold:

Manufacturing costs            $2,183,000

Marketing cost per unit sold  $851,000

Contribution margin           $4,958,000

Fixed Costs:

Manufacturing costs $1,550,000

Administrative costs   $906,000

Marketing costs        $1,479,000

Total fixed costs =            $3,935,000

Net income =                     $1,023,000

2. 2020 Income Statement using absorption costing:

2. Sales revenue                      $7,992,000

Cost of goods sold:

Variable Manufacturing costs $2,478,000 ($118 * 21,000)

Fixed Manufacturing costs        1,550,000

Total cost of production         $4,028,000

Less Ending Inventory                 479,525

Cost of goods sold                 $3,548,475

Gross profit                            $4,443,525

Period costs:

Variable marketing costs $851,000

Fixed marketing costs     1,479,000

Administrative costs         906,000

Total period costs                $3,236,000

Net income                           $1,207,525

3. The differences that Horace obtains in the operating incomes under variable costing and absorption costing are due to the fixed manufacturing costs that are included in the ending inventory under absorption costing, making the cost of goods sold to be less and resulting in more profits. Under variable costing, the ending inventory does not include the fixed manufacturing costs.  So the cost of goods sold is higher, resulting in reduced profits.

4. A bonus for Horace's supervisors based on gross margin under absorption costing will entice supervisors to produce more and  sell less products so that the fixed costs can be carried forward.  Many products will be left in inventory at the end of the period, which is then carried forward to the following period, thus, enhancing the period's gross profit for maximum bonus for the supervisors.

Modifications that Horace management could make to improve the bonus plan is ensuring that production units do not exceed the budgeted sales units by a large margin and ensuring that ending inventory does not exceed an established limit.  This will entice the supervisors to produce according to market demand.

Explanation:

a) Data and Calculations:

Budgeted production and sales units for 2020 = 25,000

Actual production units for 2020 = 21,000

Actual sales unit for 2020 = 18,500

Ending inventory units for 2020 = 2,500

Selling price per unit = $432

Sales revenue = $7,992,000 ($432 * 18,500)

Variable cost:

Manufacturing cost per unit produced:

Direct materials                        $33

Direct manufacturing labor     $23

Manufacturing Overhead       $62 $118

Marketing cost per unit sold  $46

Total variable costs per unit $164

Fixed cost:

Manufacturing costs $1,550,000

Administrative costs   $906,000

Marketing costs        $1,479,000

Total fixed costs =   $3,935,000

1. 2020 Income Statement using variable costing

Sales revenue                      $7,992,000 ($432 * 18,500)

Variable Cost of goods sold:

Manufacturing costs            $2,183,000 ($118 * 18,500)

Marketing cost per unit sold  $851,000 ($46 * 18,500)

Contribution margin           $4,958,000 ($268 * 18,500)

Fixed Costs:

Manufacturing costs $1,550,000

Administrative costs   $906,000

Marketing costs        $1,479,000

Total fixed costs =            $3,935,000

Net income =                     $1,023,000

2. Sales revenue                      $7,992,000

Cost of goods sold:

Variable Manufacturing costs $2,478,000 ($118 * 21,000)

Fixed Manufacturing costs        1,550,000

Total cost of production         $4,028,000 (per unit = $191.81)

Less Ending Inventory                 479,525 ($191.81 * 2,500)

Cost of goods sold                 $3,548,475

Gross profit                            $4,443,525

Period costs:

Variable marketing costs $851,000

Fixed marketing costs     1,479,000

Administrative costs         906,000

Total period costs                $3,236,000

Net income                           $1,207,525

7 0
3 years ago
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