Can somebody help me figure out what he means by this assignment. Don't actually do it but like explain it to me

Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discou

Natali5045456 [20]

Answer:

C- $3,400

Explanation:

The Karla Salons has leased equipment from Smith Co. in a finance lease. The Smith Co will record the interest receivable from the Karla Salons in its income statement. The Karla Salons will record lease obligations in its balance sheet. Under the new ASU, the interest revenue which Smith Co. will record in its income statement is $3,400 for the year 2016.

5 0

3 years ago

Why is it important to conduct market research on your target audience before building your marketing plan?

Tcecarenko [31]

Conducting market research on your target audience before building a marketing plan allows you to understand your customers/clients and their needs. By completing a marketing plan that includes demographical research as well as spending and purchasing goals and plans, you can understand how to adjust each of the 4 Ps (Price, Place, Promotion, and Product) to create value for your customers and differentiate your product in the marketplace.

3 0

3 years ago

In 2019, Carla Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Carla had reve

dimulka [17.4K]

Answer:

Diluted earnings per share for 2020. is 93 cents

Explanation:

Diluted Earnings per share shows the future position of the Earnings per shareholders once the potential shareholders begin exercising their rights.

Potential Shareholders exists due to Financial Instruments that might be converted into ordinary shares. Examples are Convertible Bonds, Options, Convertible Preference shares.

Step 1 Calculate Basic Earnings Per Share

Basic Earnings Per Share = Earnings Attributable to Ordinary Shareholders / Weighted Average Number of Ordinary Shares in Issue during the period.

Profits attributable to Ordinary Shareholders :

Earnings ( $14,700 - $6,900) $7,800

Less After tax Interest on Bonds (60×$1,000×8%×80%) ( $3,840)

Profits attributable to Ordinary Shareholders $ 3960

Weighted Average Number of Ordinary Shares

Common stock outstanding 2,400 shares

Basic Earnings Per Share = $ 3960/ 2,400

= 165 cents

Step 2 Calculate Diluted Earnings Per Share

Diluted Earnings Per Share = Adjasted Basic Earnings per Share Earnings/ Adjasted Number of Ordinary Shares

Adjusted Basic Earnings per Share Earnings

Profits attributable to Ordinary Shareholders $ 3960

Add Savings on Interest (60×$1,000×8%×80%) $3,840

Adjusted Basic Earnings per Share Earnings $7,800

Adjusted Number of Ordinary Shares

Common stock outstanding 2,400 shares

Add 60× 100 shares of Convertible Bonds 6,000 shares

Adjusted Number of Ordinary Shares 8,400 shares

Diluted Earnings Per Share = $7,800/8,400 shares

= 93 cents

7 0

3 years ago

Which of the following is NOT a strategy stores use to discourage shoplifting?

Crazy boy [7]

The answer is frequent sales:
This is because all the other answers would make the shop lifter feel discouraged as there is a lot of security, when more sales would most likely have no affect

4 0

3 years ago

Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for

Katen [24]

Answer:

1) C) The value of the services of the real estate agent

2) B) $6,400

Explanation:

First, there are two questions lumped together as one

Question 1: Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?

A) The value of the house in 2013

B)The value of the house in 2016 minus depreciation

C) The value of the services of the real estate agent

4) The value of the house in 2016

Question 2: Suppose that a simple economy produces only four goods and services shoes. DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.

Products Quantity Price

Shoes 40 $60

DVDs 100 $18

Tomatoes 2,000 $1

Ketchup 300 $4

Using the information in the above table, nominal GDP for this simple economy equals A) $7, 400. B) $6, 400. C) $5, 800 units. D) $2, 440.

Answer to the First Question

First the Gross Domestic Product of a Country usually represents the market value or referred to as total monetary value of finished products as well as services that were engaged in during a specific period of time and within the borders of that country. The thing about GDP is that it only reflects items that are captured as products or services and which are reported for the year.

In the question therefore, the GDP will only reflect the value of product or service that was newly created in 2016. The house was built in 2003, therefore the relevant GDP item (value of the house) was captured in 2003.

The only new value is the Value of the services of the real estate agent who was engaged in 2016 to facilitate the sales of the house.

Answer to the Second Question:

Nominal GDP represents GDP valued at current market prices for products or services.

To calculate the Nominal GDP we look at the goods and then calculate based on their current market prices.

(Shoes = 40 pieces x $60) + (DVDS = 100 pieces x $18) + (Tomatoes (1000x$1 - 1/2 purchased by households) + (Ketchup 300 x $4)

= $2400+ $1,800+ $1000+ $1,200

= $6,400

5 0

3 years ago