1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dvinal [7]
3 years ago
10

Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more

than their acquisition price. What is the effect of the sale of the treasury stock on each of the following?
Retained earnings Total paid-in capital
a. no effect increase
b. no effect no effect
c. increase no effect
d. increase increase
a) Option A
b) Option B
c) Option C
d) Option D
Business
1 answer:
allsm [11]3 years ago
5 0

Answer: a) Option A

Explanation:

There will be no effect on retained earnings because retained earnings do not increase as a result of shares being sold. It increases when net income increases.

Total paid-in capital increases when stock is sold for higher than its par value or when treasury stock is sold for higher than its acquisition price. The treasury stock here was sold for higher than it was bought so this would increase the total paid in capital.

You might be interested in
Granfield company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,
Paul [167]

Answer:

The impact on Granfield company operating income segment would be an increase of $208,400.

Explanation:

There would be an increase of $208,400 for Granfield company operating income segment due to the eliminated fixed cost from the payback division.

This means that there would be efficient operations of other business segment of Granfield as a result of the eliminated fixed cost from the payback division. Also, there will not be sales and variable cost accruable to the company-Granfield, in the future.

Calculation;

40% * $521,00 = $208,400

6 0
3 years ago
Our entrepreneur in problem 4 above is trying to set up a well-organized office filling system that will make it easier (and les
PIT_PIT [208]

Answer:

Profit and Loss file

Sales receipt

Payrolls from your payroll firm that have been paid

Receipt for business travel

Utility bills paid

Insurance premium paid

Rent paid for office space

Advertising bills paid

Balance sheet file

Bank statement showing cash in the bank

Order for suppliers that you have 60days to pay

Statement showing balance due on bank loan

Credit card statement showing balances due

Bounced checks from customers for prior sales

Explanation:

7 0
3 years ago
The extent to which a firm's internal activities encompass one, some, many, or all of the activities that make up an industry's
Free_Kalibri [48]
The answer is:  [A]:  "vertical scope" .
_____________________________________________
8 0
3 years ago
Standard costs have which of the following characteristics? (Check all that apply.)
Minchanka [31]

Answer:

The following Apply :

A. Based on past experience and data Developed by the SCAB (Standard Cost Accounting Board

B. Used in preparing flexible budgets Useful for manufacturing companies, but not service companies

Explanation:

Standard Cost set levels of Costs and Revenues that ought to be achievable when reasonable levels of performance are attained together with working practices to manufacture a product.

Data is obtained from past experience and used to prepared flexible budgets for control purposes.

7 0
3 years ago
What was the major financial change between post-World War II borrowers and borrowers after 1970?
elena-14-01-66 [18.8K]
<span>Two oil shocks, an expansive monetary policy, and growing competition as Europe and Japan recovered from the devastation of World War II.
By the end of the decade, the country went into what came to be called
stagflation, a combination of no growth and rising inflation. In effect, the country had the worst of both worlds.
President Carter’s appointment of Paul Volcker as Federal Reserve Chair started the path to change. He restricted the money supply in a war that drove up unemployment but eventually tamed inflation.
The Reagan presidency started with cuts in spending and income taxes in what was called a ‘supply-side experiment.’
The intent was to stimulate saving, work, and investment. The emphasis that the supply-side approach put on incentives is now a more prominent part of economic thinking, but the experiment itself led to larger fiscal deficits.</span>
7 0
3 years ago
Other questions:
  • Betty and bob are not married but are living together. they have a heated argument and betty hits bob with a baseball bat, causi
    5·1 answer
  • Which businesses make up the extractive industry
    14·1 answer
  • Assume that a new project will annually generate revenues of $2 million. Cash expenses including both fixed and variable costs w
    9·1 answer
  • A firm has a fixed cost of $200 in its first year of operation. When the firm produces 99 units of output, its total costs are $
    14·1 answer
  • What are opportunity costs? How do explicit and implicit costs relate to opportunity costs? Also, a key difference between accou
    5·1 answer
  • 31. Why is a profit and loss statement useful for a business? (1 point)
    6·2 answers
  • Drake Custom Cycles' common stock currently pays no dividends. The company plans to begin paying dividends beginning 3 years fro
    13·1 answer
  • I need help with this question please
    7·1 answer
  • What are the three basic types business organizations? *
    6·1 answer
  • If in the process of calculating gdp, the market value of all intermediate goods is added to the market value of all final goods
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!