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NNADVOKAT [17]
3 years ago
6

Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholdersâ equity. Se

lect + for increase, - for decrease, or No Effect.
Transaction Total Assest Total Liabilities Total stockholders' Equity
Issue common stock
Issue preferred stock
Purchase treasury stock
Sale of treasury stock
Declare cash dividend
Pay cash dividend
100% stock dividend
2-for-1 stock split
Business
1 answer:
Scorpion4ik [409]3 years ago
8 0

Answer:

Transaction                       Assets            Liabilities        Stockholders' Equity

Issue common stock           Increase               NE                      Increase

Issue preferred stock         Increase               NE                      Increase  Purchase treasury stock     Decrease             NE                       Decrease

Sale of treasury stock         Increase              NE                        Increase  Declare cash dividend            NE                   Increase                   NE

Pay cash dividend               Decrease            Decrease NE

100% stock dividend              NE                        NE                      NE

2-for-1 stock split                    NE                       NE                         NE

When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.

When cash dividends are declared, they become a liability that is owed to equity holders.

When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.

100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.

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Pelican Inc., a multinational oil corporation headquartered in Denmark, conducts its operations in various nations by establishi
Ivanshal [37]

Answer:

The correct answer is letter "B": franchising.

Explanation:

A Franchise is a business where one person, the <em>franchisee</em>, gains access to the proprietary knowledge, processes, and trademarks of a <em>franchisor</em>. In return for a royalty, the franchisee acquires the right to market a product or service under an existing brand name.

The customer is already familiar with the brand, so there is no need to invest additional resources to promote the product.

6 0
3 years ago
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
CaHeK987 [17]

Answer:

The current price of the bond would be € 898.87

Explanation:

Hi, we need to bring to present value the coupon payments and also the face value of the coupon in order to find the price of this bond, that can be done by using the following formula.

Price=\frac{Coupon((1+Yield)^{n}-1) }{Yield(1+Yield)^{n} } +\frac{FaceValue}{(1+Yield)^{n} }

Where:

Coupon = 1,000*0.078=78

Yield = 0.089 (or 8.9%)

Face Value= 1,000

n = 20 coupon payments

So, everything should look like this.

Price=\frac{78((1+0.089)^{20}-1) }{0.089(1+0.089)^{20} } +\frac{1,000}{(1+0.089)^{20} }

Price=717.13+181.74=898.87

Therefore, the price of this bond is € 898.87

Best of luck.

7 0
3 years ago
What is first step in developing a knowledge management system
Elza [17]
The first step is determining what knowledge is most important. the control function involves measuring performance relative to the planned objectives and standards, rewarding people for well work done, and then taking corrective action when necessary.

hope this helps :)
5 0
3 years ago
The financial statements of Friendly Fashions include the following selected data (in millions):
Anni [7]

Answer:

Friendly Fashions:

Ratios Calculations in 2018:

1) Return on Equity = Net Income divided by Equity x 100

Return on Equity = $170/$1,780 x 100 = 9%

2) Return on the market value of equity = share price/average shares outstanding = $8/710 x 100 = 1.12%

3) Earnings per share = Net Income divided by average shares outstanding = $170/710 = $0.24

4) Price-earnings ratio = Market value per share/Earnings per share = $8/$0.24 = $33.3

Explanation:

1) Return on Equity: The return on equity is a measure of the financial performance of an entity, which evaluates the effectiveness of management in using assets to create profits.

2) Return on the market value of equity: This measures the profit yield on the stock market capitalization.  It measures the intrinsic value of a stock by comparing the share price to the number of shares outstanding.  It is also called the market capitalization.

3) Earnings per share: This is a measure of a company's profitability.  It can be used as an indicator to pick stock to buy.  To determine the net income used for this calculation, it is necessary to deduct the dividend of preferred stock, where it exists, before arriving at the net income.

4) Price-earnings ratio: This company valuation method measures the share price relative to the earnings.  It is also called the price multiple and earnings multiple.  It shows how much an investor can pay in dollars in order to earn a dollar of earnings.  It also indicates if a stock is overvalued or undervalued.

8 0
3 years ago
Assume that marginal revenue equals rising marginal cost at 100 units of output.
Digiron [165]

Answer:

b) -$700.

Explanation:

The economic profit or loss will be:

economic result = revenue - total cost

<u>Where:</u>

fixed cost + variable cost = total cost

400 + 600 = 1,000

revenue = units x selling price per unit

100 units x $3 = $300

economic result = revenue - total cost = 300 - 1,000 = -700

The company is on the optimal level, marginal revenue = marginal cost at 100 units of output.

But, it is not selling at the correct price. It should sale at a higher price.

5 0
3 years ago
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