Answer:
The value of a right is $1
Explanation:
10 rights are needed to buy 1 share at the price of $19
Value of total rights = $29 - $19 =$10
Value of a right = 
= $1
Answer:
c. Repayment of long-term borrowing to the bank.
Explanation:
The third section of the statement of cash flows shows the cash flows from financing activities.
These activities are defined as ‘activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.’ It measures the flow of cash between a firm and its owners and creditors. Companies often borrow money to fund their operations, acquire another company or make other major purchases. Here again for investors, the most important item is cash dividends paid.
Based on the above discussion, the following item shall be included in the financing cash flows.
c. Repayment of long-term borrowing to the bank.
Answer:
$200,000
Explanation:
The value of the government obligation = $5,00,000, 8%, 20 years bonds payable at 103
Interest expenses = $5,000,000 * 8/100 * 6/12 = $200,000.
Thus, $200,000 will be reported as debt service expenses in the fiscal year 20X7.
Answer:
POAR = $29 per hour
Explanation:
<em>The overhead absorption is a per-determined rate which is used to charge overheads to production units. Note that this rate is computed using estimated figures</em>
The rate is computed as follows:
Pre-determined overhead absorption rate (POAR)
POAR = Budgeted overhead for the period/Budgeted direct labour hours
= $145,000/5,000 labour hours
= $29 per hour
Answer: $2100
Explanation:
From the question, we are informed that Oakley Company does not ring up sales taxes separately on the cash register and that the total receipts for February amounted to $32,100 and the sales tax rate is 7%.
The amount that must be remitted to the state for February's sales taxes will be:
= $32,100/(1+7%) × 7%
= $32100/(1 + 0.07) × 0.07
= $32100/1.07 × 0.07
= $2100
