In a split offering, we see that a) shares are issued from the corporation and sold by existing shareholders.
<h3>What is a split offering?</h3>
A split offering is a type of stock issuance that involves the issuing of new stock and existing stock that it is in the market already. This is why it is called a split offering - one side of the offering comes from the corporation, and the other comes from the existing shareholders.
With a split offering, the seller will be existing shareholders and not the company. This means that the corporation that issues the shares, will then cooperate with existing shareholders who will then be the ones to sell the shares.
Find out more on stock offerings at brainly.com/question/13049425.
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Answer:
No, because the second method has lower total costs of production.
Explanation:
In a bid to make profits businesses must always compare different processes and choose the cheapest one.
This will eventually reflect in the profitability of the business.
In this instance let's get the cost of each process.
Fabric costs $110 a bolt and labor costs $20 an hour.
The first dress maker can sew 400 garments with 100 bolts of fabric and 1,500 hours of labour
Total cost = (100 bolts * 110) + (1500 * 20)
Total cost = $41,000
For the second dress maker he can sew 400 garments with 150 bolts of fabric and 1,000 hours of identical labour
Total cost = (150 *110) + (1000 * 20)
Total cost = $36,500
As can be seen the second dressmaker has a lower cost of production so he is more efficient than the first dress maker
Answer:
1. Dividends = It will be classified as <u>dividends.</u>
2. Rent Revenue = It will be classified as <u>revenues.</u>
3. Advertising Expense = It will be classified as an<u> expense.</u>
4. Stock holders pay cash into business = It will be classified as <u>Issuance of stock.</u>
<u></u>
Dividends are the share of revenue distributed to stockholders.
Revenues are income earned by the company.
Expense are the outflow of cash or bank payments for running the business.
Issuance of stock refers to collection of money by the company through issuing equity or preference shares.
Answer:
Joint costs allocated to Product Y = $60,000
Explanation:
Given:
Particular Product Units Produced Sales
X 5,000 $70,000
Y 3,000 $30,000
<u>Z 2,000 $100,000</u>
<u>Total 10,000 </u>
Joint costs allocated to Product Y = (Total Joint costs × Y's total unit) / Total units produced
Joint costs allocated to Product Y = ($300,000 × 3,000) / 10,000
Joint costs allocated to Product Y = $90,000
Answer:
D) $165,000
Explanation:
Partner Capital Balance Income Share
Nunes $250,000 20%
Orta $180,000 30%
Paulo $150,000 50%
Totals $580,000 100%
Orta's balance - capital balance = $180,000 - $159,000 = $21,000 which will increase the partnership's total capital balance
partnership's capital balance = $421,000
the extra $21,000 will be divided according to each remaining partner's income distribution:
- Paulo = (50%/70%) x $21,000 = $15,000
- Nunes = (20%/70%) x $21,000 = $6,000
Paulo's capital balance = $150,000 + $15,000 = $165,000
