Answer: $57,000,000
Explanation:
The employees purchased at a 20% discount which means that this 20% discount is the amount that would have to be covered by the company's pretax earnings:
= 19,000,000 * 15 * 0.2
= $57,000,000
<em>Martin's pretax earnings will be reduced by $57 million because the company would have to cover the discount on the shares. </em>
ROI is the answer to this question. ROI or Return of
Investment is when the capital is now gained back and the business computes the
amount of profit during the time the investment was returned. Return of
investment is computed by dividing the benefit of investment over the cost of investment.
Answer:
Yes, Ryan Frazier is behaving in a professional manner.
Explanation:
Yes, Ryan Frazier is behaving in a ethical and professional manner because the company is following FOB point method when shipping goods it customers due to the fact that Ryan Frazier, controller of Anstead Co., has suggested that all orders received before the end of the fiscal year be shipped by midnight as the company follows merchandise FOB shipping points the company should go ahead and record the sales in the current year Octocber 31st due to the fact that FOB shipping point means that the buyer pays all cost incurred for the delivery of the goods once the goods has left the suppliers warehouse which makes the buyer to becomes the owner of the goods in transit when the goods are been shipped by the seller.
Answer:
Buffett is concerned about debt in business as they analyse the financial statement of business before acquiring it or investing in it, as it suggest the future financial position of the company and it´s ability to generate consistent earning for the company. They focus on return on equity rather than debt, as regulatory body, credit agencies, and creditors use financial statement to decide on company´s worthiness by evaluating company´s debt and lending term. Debt become obligation for the company and its shows weak accounting and financial position of the company. The warren buffett´s investment policy is to acquire and hold companies for long run, therefore return on equity is a better parameter to evaluate any company.
