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Elodia [21]
3 years ago
15

Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 265,000 shares of stock outst

anding. During 2016, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at 12/31/16, assuming no common stock was either issued or retired during 2016?
Business
1 answer:
PIT_PIT [208]3 years ago
6 0

Answer: $16.60

Explanation:

The following information can be gotten from the question:

Total common equity = $4,050,000 Shares of stock outstanding = 265,000

Net Income = $450,000

Dividends = $100,000

Based on the information given, the book value per share will be calculated as:

(Total common equity + Net income - Dividends) / Outstanding shares

= ($4,050,000 + $450,000 - $100,000) / 265,000

= $4,400,000 / 265,000

= $16.60

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Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthly i
Anastaziya [24]

Answer: 189400

Explanation:

The dollar amount of sales that must be made to produce the target income would be:

= (Fixed costs + Target profit) / Contribution margin ratio

= (80000 + 14700) / 50%

= 94700 / 50%

= 94700 / 0.5

= 189,400

7 0
3 years ago
At the beginning of the month, the Painting Department of Skye Manufacturing had 30,000 units in inventory, 70% complete as to m
VikaD [51]

Answer:

Cost per equivalent unit of material =  $2.20 per unit

Cost per equivalent unit of conversion =  $4 unit

Explanation:

The computation of Cost per equivalent unit of material, Cost per equivalent unit of conversion is shown below:-

For computing the cost per equivalent first we need to find the equivalent unit of material which is below:-

= Transferred units + ( Department units × Material percentage)

= 135,000 + (20,000 × 40%)

= 135,000 + 8,000

= 143,000

So, the Cost per equivalent unit of material = (Beginning material cost + Current month material cost) ÷ Equivalent unit of material

= ($32,400 + $282,240) ÷ 143,000

= $314,640  ÷ 143,000

= $2.20 per unit

Now, For computing the Cost per equivalent unit of conversion first we need to find the equivalent unit of conversion cost which is below:-

= Transferred units + ( Department units × Conversion percentage)

= 135,000 + (20,000 × 15%)

= 135,000 + 3,000

= 138,000

So, the Cost per equivalent unit of conversion = (Beginning conversion cost + Current month conversion cost) ÷ Equivalent unit of conversion cost

= ($6,250 + $544,700) ÷ 138,000

= $550,950  ÷ 138,000

= 3.99

or $4 unit

8 0
3 years ago
Listed below are five technical accounting terms. Each of the following statements describes one of these technical terms. For e
krok68 [10]

Answer:

a. Incremental analysis.

b. Sunk cost.

c. Relevant information.

d. Opportunity cost.

e. Joint products.

f. Out-of-pocket cost.

g. Split-off point.

Explanation:

a. Incremental analysis: examination of differences between costs to be incurred and revenue to be earned under different courses of action.

b. Sunk cost: a cost incurred in the past that cannot be changed as a result of future actions. Sunk cost can be defined as a cost or an amount of money that has been spent on something in the past and as such cannot be recovered.

c. Relevant information: costs and revenue that are expected to vary, depending on the course of action decided on. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

d. Opportunity cost: the benefit foregone by not pursuing an alternative course of action. Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

e. Joint products: products made from common raw materials and shared production processes.

f. Out-of-pocket cost: a cost yet to be incurred that will require future payment and may vary among alternative courses of action.

g. Split-off point: the point at which manufacturing costs are split equally between ending inventory and cost of goods sold. Thus, it give rise to joint products that emerge from the same raw materials and a shared manufacturing process.

6 0
3 years ago
A healthy fast-casual restaurant that offers only vegetarian and vegan meals insists on portraying organic ingredients in its ad
Gelneren [198K]
The strategy that they use is <span>signaling value by targeting sophisticated buyers

This type of strategy could only work if the target market has specific preferences.
Even though the number of potential consumers for this market tend to be considerably small compared to another market, but the customers that obtained through this strategy tend to show higher level of loyalty.</span>
5 0
3 years ago
A major drawback of using historical results for judging current performance is that _____. A. past results may be incorrect B.
pychu [463]

Answer:

C. inefficiences may be concealed in the past performance.

Explanation:

A major drawback of using historical results for judging current performance is that inefficiences may be concealed in the past performance.

8 0
3 years ago
Read 2 more answers
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