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Blizzard [7]
3 years ago
5

Midtown, Inc. had the following transactions in 2018, its first year of operations:• Issued 31,000 shares of common stock. Stock

has par value of $1.00 per shareand was issued at $20.00 per share.• Earned net income of $70,000.• Paid no dividends.At the end of 2018, what is total stockholders' equity?Select one:A. $690,000B. $70,000C. $31,000D. $620,000
Business
1 answer:
Sonbull [250]3 years ago
6 0

Answer:

                                                                                        $

Par value of existing  com m on stock (31,000 x $1) 31,000

Share premium (31,000 x  $19)                                   589,000

Net income                                                                   <u>70,000</u>

Total stockholders' equity                                          <u> 690,000</u>

The correct answer is A

Explanation:

The total stockholders' equity is the sum of par value of common stock, share premium and net income. Share premium is the excess of issue price over par value ($20 - $1) = $19.

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At the beginning of the current year, Snell Co. total assets were $254,000 and its total liabilities were $177,200. During the y
tamaranim1 [39]

Answer:

66.62%

Explanation:

The debt ratio is the total liabilities divided by total assets. At the end of the year, total assets stood at $266,000, the increase in retained earnings which is the excess of revenue over expenses and dividends payment does not affect  liabilities, as a result, liabilities stayed the same at $177,200.

Debt ratio=total liabilities/total assets

debt ratio=$177,200/$266,000

debt ratio=66.62%

7 0
3 years ago
In your opinion, what are the forms of institutional advertising that are suitable for banks in Palestine with examples. Why??
kolezko [41]

Answer:

Institutional advertising for banks in Palestine should take into account the cultural sensibilities of the country.

As a muslim country, banks should take into account not only local Palestinian culture, but also general islamic culture when developing their advertising.

Palestine also has complex foreign relationships. Banks should also take this into account in order to create advertising that is effectively catered to the Palestinian people.

4 0
3 years ago
Until the mid-1700s, the 13 colonies often had diverse histories and economies, which provided ___________.
Natali [406]
Until the mid-1700s, the 13 colonies often had diverse histories and economies, which provided <span>little incentive for them to join together to meet shared goals.
Since these colonies were so different, they didn't have any common cause or a reason to band together so as to achieve such common goals. 
</span>
4 0
3 years ago
Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below
RideAnS [48]

Answer:

137,000

Explanation:

                                Jan          Feb              March

Units produced     94000                         80000

Raw materials         26,000

Raw materials       213800    239800   295800

Ratio of raw material to a product is 2:1

Ending inventory = 30% of next month production

Represent budgeted production in February by F

239800=2F + (80000*2*30%)-(2F*30%)

239800 = 2F +48000 =0.6F

239800-48000=2F-0.6F

191800=1.4F

F= 191800/1.4 =137000

7 0
3 years ago
In this exhibit (Monopoly Through Collusion), given the duopoly industry illustrated in the exhibit, if the two firms colluded t
tekilochka [14]

Answer:

c: P2; given by the area of the rectangle P1P2BG

Explanation:

Under monopoly, equilibrium is attained where firm's MC becomes equal to firm's MR. In the above diagram, this situation is satisfied 2 times i.e. at Q1 and Q2. This means market price may be P2 or P3 because MC = MR1 at equilibrium quantity Q1 and equilibrium price P3 while MC = MR2 at equilibrium quantity Q2 and price P2.

Economic profit of the firms is the total revenue minus total cost of the firm so it will be area above the MC curve i.e. either P1P2BG or P1P3AF.

But in the options there is presence of only P1P2BG. Therefore, (c) is the correct answer.

7 0
4 years ago
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