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2 years ago

Question 8

Business

1 answer:

elixir [45]2 years ago

8 0

Answer:

True

Explanation: You need to pay at least 20% down.

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Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual divi

shutvik [7]

Answer:

28.63%

Explanation:

The computation of the cost of preferred stock is shown below:

Cost of the preferred stock = Dividend ÷ Price of the stock

where,

Dividend is

= $1,000 × $15%

= $150

And, the price of the stock is

= Market value of the stock - flotation cost

= $576 - $52

= $524

So, the cost of preferred stock is

= $150 ÷ $524

= 28.63%

We ignored the marginal tax rate i.e 40%

3 0

2 years ago

Inventory records for Marvin Company revealed the following:

lbvjy [14]

Answer:

Ending inventory= $5,592.45

Explanation:

Giving the following information:

Mar. 1: Beginning inventory= 1,090 units at $7.25

Mar. 10: Purchase: 510 units at $7.75

Mar. 16: Purchase: 397 units at $8.35

Mar. 23: Purchase: 510 units at $9.05

First, we need to calculate the number of units in ending inventory:

Ending inventory in units= total units - units sold

Ending inventory in units= 2,507 - 1,880= 627

Under FIFO (first-in, first-out), the ending inventory is composed of the cost of the last units bought.

Ending inventory= 510*9.05 + 117*8.35= $5,592.45

6 0

3 years ago

Steve owns a bike store. his total costs are $1.2 million per year. last year, steve sold 1,200 bikes. steve's average total cos

rjkz [21]

Steve owns a bike store, his total costs are $1.2 million per year. Last year, Steve sold 1,200 bikes. Steve's average total cost was $1,000 per bike.

To solve: take the total costs of $1.2 million and divide it by the number of bikes sold, $1,200
Average total cost = 1,200,000/1,200
Average total cost = $1,000

4 0

2 years ago

Definition of liability

Artyom0805 [142]

Liability means to be responsible for something.
It also means that someone or something's presence will probably cause embarrassment or put someone at a disadvantage.

5 0

3 years ago

Jing Company was started on January 1, Year 1 when it issued common stock for $28,000 cash. Also, on January 1, Year 1 the compa

denpristay [2]

Answer:

5,280 net income for the Year 3

Explanation:

This would be the situation:

17,400 revenue

11,000 expenses

gain/loss on sale of equipment

= net income year 3

To know the result of the sale of equipment we have to do

sales price - book value = gain/loss on sale of equipment

8900 - book value = gain/loss

We have to determinate the book value.

book value = adquisition cost - acumulated depreciation

The equipment cost 15,200 + 1,300 transportation cost = 16,500 Adquisition Cost

acumulated depreciation = depreciation per year * 3 years

and depreciation per year is:

$\ $ depreciation per year $= \frac{Adquisition Value - Salvage Value }{Useful Life}$

Here we have all the values, so we stop digging and start solving.

depreciation = (16,500-5,700)/5 = 2,160

acumulated depreciation = 2,160 * 3 = 6,480

book value = 16,500 - 6,480 = 10,020

gain/loss = 8,900 - 10,020 = -1,120 LOSS on sale of Equipment

net income = 17,400 - 11,000 - 1,120 = 5,280 net income for the Year 3

6 0

3 years ago