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kompoz [17]
3 years ago
7

Dallas Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 37,

080,000 Net operating income $ 3,108,960 Average operating assets $ 8,600,000 The company's minimum required rate of return 16 % The division's residual income is closest to:______
Business
1 answer:
tino4ka555 [31]3 years ago
5 0

Answer:

1,732,960

Explanation:

The sales is $37,080,000

The net operating income is $3,108,960

The average operationg assets is $8,600,000

The required rate of return is 16%

The divisional residual income can be calculated as follows

= 3,108,960-(16/100×8,600,000)

= 3,108,960 - (0.16×8,600,000)

= 3,108,960-1,376,000

= 1,732,960

Hence the residual income is closest to $1,732,960

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For each of the unrelated transactions described below, present the entries required to record each transaction.
Mars2501 [29]

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

1. Cash Dr,                                                $19,618,250

Discount on bonds payable Dr,               $606,750

          To Bonds payable                                           $20,225,000

(Being Bonds issued is recorded)

Working Note:-

Cash = ($20,225,000 × (97 ÷ 100)

=  $19,618,250

So, the bonds has been issued a discount. The par value of the bonds is 100.

2. Cash Dr,                                                $19,416,000

Discount on bonds payable Dr,               $1,820,250

          To Bonds payable                                           $20,225,000  

          To Paid in capital share warrants                   $1,011,250

(Being bonds issued is recorded)

Working Note:-

The Value of bonds issued at a discount

So, value of bonds = ($20,225,000 × ($96 ÷ $100)

= $19,416,000

Now, Value of warrants = ($20,225,000 ÷ 100) × $5

= $1,011,250

Total value of bonds including warrants = Value of bonds + Value of warrants

= $19,416,000 + $1,011,250

= $21,236,250

3. Debt conversion expense Dr,      $78,300

Bonds payable Dr,                             $10,342,000

          To discount payable                            $58,600

           To common stock                               $1,034,200

           To paid in capital in excess

            of common stock                                $9,249,200

           To cash                                                  $78,300

(Being debt conversion is recorded)

6 0
3 years ago
On the statement of cash flows, the cash flows from operating activities section would include a. receipts from the issuance of
klio [65]

Answer:

c. payment for interest on short-term notes payable

Explanation:

Cash flow statement shows positive and negative cash flows that result from activities of a business. It is divided into 3 parts: cash flow from operating activities, cash flow from investing activities, cash flow from financing activities.

Cash flows form operations involves cash flows from regular business activities. A positive change in assets represents an outflow and a negative change in liability represents an inflow.

Items considered under operating activities include inventory, accounts receivable, accrued revenue, accounts payable, and tax liabilities.

Payment for interest on short-term notes payable is a account payable item, so it is included in cash flow from operations

8 0
3 years ago
Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year
Lady_Fox [76]

Answer:

3. embedding culture

Explanation:

Based on the scenario being described within the question it can be said that the things that Della wants to do are all examples of embedding culture. This refers to implementing different aspects into an organizations existing culture with the hopes of improving the organization. Such as new values, beliefs and expectations that may help the organization perform better in modern times.

5 0
3 years ago
Read 2 more answers
GroundSwell Pools, Inc., agrees to build a swimming pool for Francis, but fails to complete the job. Francis hires EquiAqua, Inc
Nezavi [6.7K]

Answer:

Option A. The costs needed to complete construction

Explanation:

The reason is that the harm that the Francis beared due to the unableness of the company GroundSwell to complete the construction of the swimming pool is the cost needed to complete the construction because it is the price that the company GroundSwell must pay to EquiAqua Inc. to complete the construction. So this amount required for the completion of the construction is the actual harm to Francis and is also claimable.

8 0
3 years ago
Arnold, a single individual, has adjusted gross income of $65,000 in the current year. Arnold donates the following items to his
Olin [163]

Answer:

Option A. $15,400

Explanation:

The net deduction allowed as an charitable contributions are as under:

                                             $

1. ABC Cop. stock

Cost $6000  

FMV <u>$22000</u>                   $16000

2. Personal Clothing Items

Cost $1000

FMV <u>$400  </u>                      <u>  ($600) </u>

Net Deduction                 $15,400

The amount that qualifies as charitable contribution for the year is $15400.

3 0
3 years ago
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