1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Virty [35]
2 years ago
11

Company's comparative balance sheet E(Click the icon to view the comparative balance sheet.) t January 31, 2019, and 2018, repor

ts the following The following are three situations related Bosley Company's issuance of stock and declaration and payment of dividends during the year ended January 31, 2019. Read the requirements Begin by reviewing the labels for the change in stockholders' equity and then enter the amounts for each situation. (Enter sign amount in each input area, Input a "0" when there i no amount to be entered. Enter amounts in millions. Use a minus numbers to be subtracted.) rparentheses when entering net losses o Situation #1 1 Total stockholders' equity, January 31, 2018 Add: Issuance of stock 5 Data Table 0 Net income Less: Dividends declared 2018 2019 Net loss Total stockholders' equity, January 31, 2019 Total assets 74 48 Total liabilities 23 17 Print Done iRequirements For each situation, use the accounting equation and what you know from the chapter about stockholders' equity, common stock, and retained earnings to calculate the amount of Bosley's net income or net loss during the year ended January 31, 2019.
1. Bosley issued $5 million of stock and declared no dividends.
2. Bosley issued no stock but declared dividends of $8 million.
3. Bosley issued $10 million of stock and declared dividends of $50 million
Business
1 answer:
frozen [14]2 years ago
4 0

Answer:

Bosley Company

Calculation of Net Income or Net Loss during the year ended January 31, 2019, under three independent situations:

Situation 1. Bosley issued $5 million of stock and declared no dividends.  

Net Loss = stockholders' equity, January 31, 2018 plus new issue of stock less stockholders' equity, January 31, 2019

= $51 + 5 - 31 = $25 million

Situation 2. Bosley issued no stock but declared dividends of $8 million.

Net loss = stockholders' equity, January 31, 2018 less (dividends + stockholders' equity, January 31, 2019)

= $51 - (8 + 31) = $12 million

Situation 3. Bosley issued $10 million of stock and declared dividends of $50 million :

Net income = (stockholders' equity, January 31, 2019 plus dividends) minus (stockholders' equity, January 31, 2018 plus Issuance of stock)

= ($31 + 50) - ($51 + 10) = $20 million

Explanation:

a) Data and Calculations:

                                         2018    2019

Total assets                         74       48  

Total liabilities                     23       17  

Total stockholders' equity  51       31

Stockholders' equity according to the accounting equation = Assets minus Liabilities for each year.

b) Situation 1. Bosley issued $5 million of stock and declared no dividends.  

                                                                       ($' million)

Total stockholders' equity, January 31, 2018   51

Add: Issuance of stock                                       5

Net income                                                           0

Less: Dividends declared                                   0

Net loss                                                            (25 )

Total stockholders' equity, January 31, 2019   31

Net Loss = stockholders' equity, January 31, 2018 plus new issue of stock less stockholders' equity, January 31, 2019

= $51 + 5 - 31 = $25 million

c) Situation 2. Bosley issued no stock but declared dividends of $8 million.  

                                                                       ($' million)

Total stockholders' equity, January 31, 2018   51

Add: Issuance of stock                                       0

Net income                                                          0

Less: Dividends declared                                 (8 )

Net loss                                                             (12 )

Total stockholders' equity, January 31, 2019  31

Net loss = stockholders' equity, January 31, 2018 less (dividends + stockholders' equity, January 31, 2019)

= $51 - (8 + 31) = $12 million

d) Situation 3. Bosley issued $10 million of stock and declared dividends of $50 million

                                                                    ($' million)

Total stockholders' equity, January 31, 2018  51

Add: Issuance of stock                                     10

Net income                                                       20

Less: Dividends declared                               (50 )

Net loss                                                              0

Total stockholders' equity, January 31, 2019 31

Net income = (stockholders' equity, January 31, 2019 plus dividends) minus (stockholders' equity, January 31, 2018 plus Issuance of stock)

= ($31 + 50) - ($51 + 10) = $20 million

You might be interested in
You are a research analyst in charge of publishing research reports for your company, C-Minus Investment Banking and Research. Y
VashaNatasha [74]

Answer:

<em>[C] Go on with the scheduled issue date as planned, issuing the objective report as is even though this may negatively affect business between the two companies.</em>

Explanation:

Although the communication between the two organizations might have a detrimental impact on business, it really is your duty to release the report as it is.

It is unethical to prolong the problem for convenience or as a favor to the executives of the other organization as the study shifts to downplay negativity.

8 0
3 years ago
The aggregate demand curve slopes downward indicating that
Likurg_2 [28]

Answer: Diminishing marginal utility.

Explanation: The demand curve tends to slopes downward because of diminishing marginal utility and it also slopes downwards because of the substitution and income effects.

4 0
2 years ago
The "sticky wage" theory states that …
Umnica [9.8K]

Answer:

c. wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment high.

Explanation:

Sticky wage theory -

According to this theory , the payment of the employees have a slow response for the change in the performance of the company or the economy .

From this theory , as the unemployment increases ,  the wages of the employed candidates tends to remain same or increases very slowly due to to decrease in the demand of the labor .

In this case , the wages are sticky - down , as they move up easily but get down with difficulty .

4 0
2 years ago
Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,1
Firdavs [7]

Answer:

a. 1.14

Explanation:

The current ratio is a financial measure that shows how many times the current assets of an entity may be used (covers) the current obligations (liabilities) of the entity.

It is given as current assets divided by current liabilities.

Astin Company’s current ratio

= $82530/$72120

= 1.14

This means that the current assets will settle the current liabilities 1.14 times.

6 0
3 years ago
The previous value of a portfolio that must be regained before a hedge fund can charge their investors performance fees is known
Margarita [4]

Answer:

high watermark

Explanation:

A high watermark refers to the mark at which the investment could be reached at a high peak. It to be calculated on that date when the performance fees are charged and it could be charged only on that case when there is a rise in the value of the portfolio

Moreover,  in the high watermarks there is no need to pay the performance based fee when there is a poor performance

Therefore the given situation represent the high watermark

4 0
3 years ago
Other questions:
  • If the total unit cost of manufacturing Product Y is currently $36 and the total unit cost after modifying the style is estimate
    15·1 answer
  • You have been investing $300 a month for the last 8 years. Today, your investment account is worth $43,262. What is your average
    15·1 answer
  • LeQuient will be giving a sales presentation to a mixed audience and he wants to find out if the audience members are individual
    10·2 answers
  • The Miller Company earned $133,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivabl
    14·1 answer
  • _____is traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to mar
    6·1 answer
  • There are distinctive differences between private market and public government operations. Private goods and public goods have d
    15·1 answer
  • Selected sales and operating data for three divisions of different structural engineering firms aregiven as follows: Division A
    15·1 answer
  • If a government fixes the wage rate above the mar-
    9·1 answer
  • Problem 3. A company wants to forecast demand for June using a two period weighted moving average with weights of .6 (for May) a
    8·1 answer
  • COMO CREES QUE SE PODRIA SOLUCIONAR LA POBREZA ?? POR FAVOR DOY CORONA , Y CORAZON ( E QUE NO SEPA NO ESCRIBA ) :(
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!