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3 years ago

Below is the common equity section (in millions) of Timeless Technology's last two year-end balance sheets:

Business

1 answer:

Sonbull [250]3 years ago

3 0

Answer: The firm issued common stock in 2013.

Explanation:

Since the firm has never paid a dividend to its common stockholders, we can see that the firm issued common stock in 2013.

Looking clearly at the common equity section, we can see that there was an increase in the common stock from $1000 to $2000.

The reduction in the retained earnings from $2340 to $2000 also shows that there was a loss.

Based on the above scenarios, we can say that the firm issued common stock in 2013.

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Financial statement analysis: Multiple Choice is primarily used to identify account values that meet the normal standards. is li

Vedmedyk [2.9K]

Answer:

The correct answer is the third option: Provides useful information that can serve as a basis for forecasting future performance.

Explanation:

To begin with, the name of "Financial Statement Analysis" refers to a process done by the managers of a company in the field of businesses that focus primarily in the observation of the financial accounts that the organizations has in order to be able to determine better decision so that they could earn better profits in the future avoiding mistakes previously done. Therefore that this type of analysis has the purpose of providing useful information for the managers so that they can establish better ways of acting and performing in the field.

5 0

3 years ago

According to Fiedler's theory, a high-control situation favors a __________ leader.A. task-motivatedB. relationship-motivatedC.

Brilliant_brown [7]

The correct answer is choice a - task motivated.

According to Fiedler’s theory, there is no one best style of leadership. Instead, a leader's effectiveness is based on the situation. Leadership is either task-motivated or relationship-motivated, and in a high control situation a task-motivated leader is more effective.

7 0

3 years ago

Kingston Co. uses the percentage-of-receivables basis to record bad debt expense.

Troyanec [42]

Answer:

Explanation:

The journal entry to record the bad debt expense is shown below:

Bad debt expense A/c Dr $2,700

To Allowance for doubtful debts $2,700

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= (Accounts receivable × estimated percentage given ) - (credit balance of Allowance for Doubtful Accounts)

= ($420,000 × 1%) - ($1,500)

= $4,200- $1,500

= $2,700

4 0

3 years ago

High-Low Method

frozen [14]

Answer:

Requirement 1

High Point = March

Low Point = January

Requirement 2

Variable rate for tanning $0.41 per tanning appointment

Fixed cost per month $1,457

Requirement 3

Total Cost = $1,457 + $0.41 × Activity Level

Requirement 4

Total predicted cost for September $ 2,482

Total fixed cost for September $1,457

Total predicted variable cost for September $1,025

Explanation:

Requirement 1

High Point = March

Low Point = January

Requirement 2

Variable Cost = Difference in Overhead Cost (High - Low)/ Difference in Activity (High - Low)

= $2,810 - $1,744 / 3,300 - 700

= $1,066/ 2,600

= $0.41

Fixed Cost Component = Total Overhead Cost - Variable Cost × Selected Activity.

Lets Select, January 700 $1,744

Fixed Cost Component = Total Overhead Cost - Variable Cost × Selected Activity.

= $1,744 - $0.41 × 700

= $1,457

Requirement 3

Cost formula for tanning services

Total Cost = Fixed Cost + Variable Cost

thus,

Total Cost = $1,457 + $0.41 × Activity Level

Requirement 4

Total Cost = $1,457 + $0.41 × Activity Level

= $1,457 + $0.41 × 2,500

= $ 2,482

6 0

3 years ago

Piedmont Hotels is an all-equity company. Its stock has a beta of .82. The market risk premium is 6.9 percent and the risk-free

katrin2010 [14]

Answer:

11.86%

Explanation:

Piedmont hotels can be described as an all-equity company

Its stock has a beta of 0.82

The market risk premium is 6.9%

The risk free rate is 4.5%

The adjustment is 1.7%

Therefore, the required rate of return can be calculated as follows

Required rate of return= Risk free rate of return + ( beta×market risk premium) + adjustment

= 4.5% + (0.82×6.9%) + 1.7%

= 4.5% + 5.658 + 1.7%

= 11.86%

Hence the required rate of return for the project is 11.86%

7 0

3 years ago