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2 years ago

The shareholder-debtholder conflict refers to:________

Business

1 answer:

Lera25 [3.4K]2 years ago

4 0

Answer:

Explanation:

The shareholder-debtholder conflict usually arises because shareholders would prefer the firm to engage in more risky business activities. This is because this has the potential to increase the income of the firm and as a result, the wealth of shareholders.

On the other hand debtholders would not want the firm to engage in risky activities because it might negatively affect the firm's ability to make its schedules payments to debtholders.

In order to protect themselves, debtholders usually draft a deb covenant which contains allowable activities of the firm

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Fortune Company had beginning raw materials inventory of $16,000. During the period, the company purchased $92,000 of raw materi

elixir [45]

Answer:

The amount of raw materials transferred to work in process is $98,000.

Explanation:

Given that, at the beginning of its business operations, Fortune Company had a raw material inventory of $ 16,000 and that, during the business year, it acquired another quantity of raw materials for $ 92,000, the total of raw materials in the company's stock had a total value of $ 108,000 (16,000 + 92,000).

Now, if at the end of the balance the value of the raw materials was $ 10,000, the amount of raw material that was incorporated into the production process was a value of $ 98,000 (108,000 - 10,000).

8 0

3 years ago

An establishment has three departments with variable costs as a percentage of sales revenue of 30 percent, 40 percent, and 50 pe

zalisa [80]

Answer:

60 percent

Explanation:

Contribution margin refers to the revenue a firm derives after deducting the variable cost it has incurred.

Contribution margin = Sales - Variable costs

Contribution margin or contribution to sales ratio represents the percentage of contribution a firm earns from the sale of it's output.

It is represented mathematically as,

= $\frac{Contribution\ margin}{Sales}$

Also, contribution margin ratio = 100 - variable cost ratio percentage.

Hence, contribution margin for three departments would be:

A = 100 - 30% = 70%

B = 100 - 40% = 60%

C = 100- 50% = 50%

This represents if sales revenue is 100, contribution margin earned is 70, 60 and 50 under three cases.

Since sales revenue in all three departments is the same, let us assume the sales revenue of a department as y.

$\frac{0.70y\ +\ 0.60y\ +\ 0.50y}{3y}$

Thus, weighted average contribution margin would be, 60 percent

7 0

2 years ago

Gina writes and signs a check payable to "Happy Market." Irma, Happy’s manager, indorses the check "For deposit only." This is

Pachacha [2.7K]

Answer:

c.a restrictive indorsement.

Explanation:

-Blank endorsement refers to an instrument that allows any holder to request the payment.

-Qualified endorsement refers to a signature in an instrument that transfers the amount to other person.

-Restrictive endorsement puts a limit on an instrument like the sentence "For deposit only."

-Special endorsement enables to make a check payable to someone else.

According to this, the answer is that this is a restrictive endorsement.

4 0

2 years ago

g had reported a deferred tax asset of $130 million with no valuation allowance. At December 31, 2021, the account balances of R

andrew-mc [135]

Answer: $101 million

Explanation:

The amount that Ross should report as income tax expense in its 2021 income statement will be calculated thus:

First, we'll calculate the deferred tax asset in valuation allowance which will be:

= Deferred tax asset before valuation allowance - Deferred tax asset after valuation allowance

= $170 million - $130 million

= $40 million

Then, income tax expense will be:

Income taxes payable= $90 million

Add: DTA not be realized = $170 million × 30% = $51 million

Less: Deferred tax asset in valuation allowance = ($40 million)

Income tax expense = $101 million

5 0

3 years ago

Jasper Corp. has a selling price of $44, and variable costs of $25 per unit. When 14,600 units are sold, profits equaled $133,00

AURORKA [14]

Answer:

Break-even point in units= 7,600

Explanation:

Giving the following information:

Selling price= $44

Unitary variable cost= $25

When 14,600 units are sold, profits equaled $133,000.

<u>First, we need to calculate the total fixed costs:</u>

Fixed costs= Total contribution margin - net income

Fixed costs= 14,600*(44 - 25) - 133,000

Fixed costs= $144,400

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 144,400 / (44 - 25)

Break-even point in units= 7,600

5 0

2 years ago