Answer:
The amount credited to common stock upon conversion of the bonds is $101000
Explanation:
When the bond was issued there would been a debit of $102000($100000*$102/$100) to cash account and credit of $102000 to liabilities split into $100000 bonds payable and $2000 bond premium.
However, on conversion to common stock with premium of $1000 outstanding in the books,the amount to be credited into common stock account is the issue value less outstanding premium.
The amount credited to common stock=$102000-$1000=$101000
This can be shown with entries below:
Dr Bond payable $100000
Dr Bond premium $1000
Cr Common stock $101000
Answer:
$810,000
Explanation:
The computation is shown below:
The increase in fixed cost is
= Salary of each sales representative × number of sales representatives hired
= $45,000 × 18
= $810,000
Now the increase in sales needed for break even is
= Increase in fixed cost ÷ Contribution margin ratio
= $810,000 ÷ 30%
= $2,700,000
As we know that break even sales is computed by dividing the fixed cost by the contribution margin ratio and we applied the same
Answer: Arranging them in an orderly manner, easy to understand by the audience and when presented
Explanation:
When arranging your slide for presentation, it's necessary that they are arranged in a logical manner, one of the things to have in mind is your objectives, when this is understood, you begin the arrangement of your presentation with your with table of contents, introduction, abstract, would be followed by the chapters, your conclusion and references, all tailored in an orderly manner driving your point home to your audience.
McDonald’s requires $750,000 in cash or liquid assets, a $45,000 initial fee, plus a monthly service fee based on the restaurant’s sales performance and rent.
Explanation:
According to McDonald's, total project expenditures, including construction costs and upgrades, vary from $1 million to $2.2 million. The number is determined by the restaurant geography and scale and the preference of kitchen equipment, branding, design style and landscaping.
McDonald's charges a franchisee premium of $45,000 and a monthly service rate equivalent to 4% of gross sales. Franchisees also have to pay rent, a proportion of the monthly sales to the client.
The International Union of Service Employees estimates that franchisees pay an average of 10.7% of revenue in rental costs.
The startup costs for McDonald's franchisee are like those of KFC, Wendy and Taco Bell.
Answer:
The DDM tells us that share price = D*(1+G)/R-G
Dividend = 4.00
G= 0.05
R= 0.15
Price = 4*(1.05)/0.15-0.05
Price= $42
Explanation:
We use the dividend discount method to estimate the current price. We use the growth rate and required return to figure out the current price by using the DDM formula.
