Answer:
Kindly refer to the attached file for the tabular solution
Explanation:
Every transaction flows through the balance sheet and most times the stockholders equity.
This table carefully highlights the impact of each entry to the stockholders equity
?
Answer:
95 %
Explanation:
A recent poll found that nearly 95 percent of people say that executives make decisions based primarily on advancing their own careers.
And the reasons are obvious. As per executives perspective everyones looks for their benefit first in corporates. So, there are no wrongs in this. As per other employees their opinion may be partly true and party due to human envy mind.
Answer:
The Environment
Explanation:
Systems approach to organisations concludes that if there is a change in one part of the business operations all other parts of business operations will show the change automatically.
Accordingly, Its the environment which shows the changes of input into output.
The organisation focuses on entering the inputs into the production process, and that the environment will automatically see the implemented changes in the input to convert into output.
Answer:
A) Cash (debit) 180,000; Common stock (credit) 150,000; Additional paid-up capital-common stock (credit) 30,000 - Debit - Credit = 0
B) Cash (debit) 255,000; Preferred stock (credit) 250,000; Additional paid-up capital-preferred stock (credit) 5,000 - Debit - Credit = 0
C) Cash (debit) 900,000; Common stock (credit) 600,000; Additional paid-up capital-common stock (credit) 300,000 - Debit - Credit = 0
Explanation:
In Eastport Inc.´s case all 3 situations are similar, shares (Stockholders´Equity) increased, so credits in 4 accounts, according to the type of shares that are issued, must be registered: Common stock, Preferred stock, Additional paid-up capital-common stock, Additional paid-up capital- preferred stock. We will recognize the par value and stated value of the shares and the difference between this and the price paid by shareholders will be recognized as additional paid-up capital. Also, cash (Asset) is received as payment for the shares so a debit must be registered in the account Cash.
<u>Calculation of Increase in Leverage ratio to achieve 20% ROE:</u>
The current ROE is given 15% and operating profit margin and asset turnover ratio are 8% and 1.25, respectively.
The formula for ROE is as follows:
ROE = Operating profit margin * Asset turnover ratio * Leverage ratio
We can say that :
Leverage ratio = ROE / (Operating profit margin * Asset turnover ratio)
Hence Current Leverage Ratio = 15% / (8%*1.25) = 1.5 times
Now we are asked to get ROE 20% with operating profit margin and asset turnover ratio at 8% and 1.25, respectively.
Hence,
Required Leverage Ratio = 20% / (8%*1.25) = 2 times
Hence Leverage Ratio should Increase by (2-1.5)<u> 0.5 times</u> to get the ROE of 20%