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3 years ago

Waterproof Roofing Company has provided the following information:

Business

1 answer:

Katyanochek1 [597]3 years ago

4 0

Answer:

(D) Operating income will increase by $27,300.

Explanation:

The sales increase will also generate an increase in the variable cost

The fixed cost, remaing unchanged against the volume of production. they do not increase or decrease at the factory level.

So the operating income will increase by the diffrence between sales and variable cost

sales increase will be:

779,000 x 10% = 77,900

variable cost increase:

506,000 x 10% = 50,600

increase in operating income 77,900 - 50,600 = 27,300

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Prepare the journal entry to record Mills’ investment in the bonds on July 1, 2018. Prepare the journal entries by Mills to reco

Damm [24]

Answer:

the question is incomplete, so I looked for a similar one and found the following:

"Mills Corporation acquired as a long-term investment $240 million of 5% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 3% for bonds of similar risk and maturity. Mills paid $280.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31."

At what amount will Mills report its investment in the December 31, 2018, balance sheet?

July 1, 2018, bonds are purchased at a premium

Dr Investment in bonds 240,000,000

Dr Premium on investment in bonds 40,000,000

Cr Cash 280,000,000

December 31, 2018, first coupon payment

Dr Cash 12,000,000

Cr Interest revenue 8,400,000

Cr Premium on investment in bonds 3,600,000

The carrying value of the investment in bonds account = $280,000,000 - $3,600,000 = $276,4000,000 or $276.4 million

Suppose Moody’s bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $290 million.

January 2, 2019

Dr Cash 290,000,000

Cr Investment in bonds 240,000,000

Cr Premium on investment in bonds 36,400,000

Cr Gain on sale of investments 13,600,000

Explanation:

amortization of bond premium using the effective interest method on first coupon received = ($240,000,000 x 5%) - ($280,000,000 x 3%) = $12,000,000 - $8,400,000 = $3,600,000

Premium on investment in bonds = $40,000,000 - $3,600,000 = $36,400,000

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3 years ago

Con artists who try to talk employees into giving up corporate secrets or passwords are known as

aksik [14]

<span>Social Engineers This is the craft of controlling individuals so they surrender secret data. The sorts of data these hoodlums are looking for can change, however when people are focused on the offenders are normally attempting to deceive you into giving them your passwords or bank data or other sensitive information</span>

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3 years ago

Diversification tends to increase portfolio performance, because:____.

AfilCa [17]

Answer:

D. A diverse portfolio is more likely to have a stock inside of it that performs amazingly well.

Explanation:

Diversification of portfolio means adding different stocks / shares in investment portfolio.

Option D is correct because when we have different kind of stock, there are chances that if one fails to perform, one can outperform and it is likely to have a stock which can perform amazingly well.

Now we will see that why all the options are incorrect one by one.

option A is not true because it is not necessary that diverse portfolio cannot fail altogether. So it cannot be guaranteed that it will have higher return for sure.

Option B is not true as diverse portfolio cannot have lower volatility if all perform like same.

Option C is also incorrect as correlation is not necessary in diverse portfolio.

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3 years ago

Which of the statements below is FALSE? A. Common stock's ownership claim on the assets and cash flow of a company is often re

elixir [45]

Answer:

The option B. The profits for common stock owners come before payment to employees, suppliers, government, and creditors. is the false statement.

Profit is any amount that is left after setting aside the cost and liabilities. It is financial gain which is represented by the difference between the amount that is spent and the amount that has been earned or gained. Whereas common stock is a kind of a common share holder equity which also considered to be a type of a security.

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3 years ago

If the assets of a business are $ 390 comma 000 and the liabilities are $ 110 comma 000, how much is the owners' equity? (2)

Softa [21]

If the assets of a business are $ 390 comma 000 and the liabilities are $ 110 comma 000, how much is the owners' equity?

Using the Balance Sheet Equation

Assets= Liabilitites+Owners Equity

390000=110000+Owners Equity

Owners Equity=$280000

if the owners' equity in a business is $ 90 comma 000 and the liabilities are $ 190 comma 000, how much are the assets?

Using the Balance Sheet Equation

Assets= Liabilitites+Owners Equity

Assets=190000+90000

Assets=$280000

(3) a company reported monthly revenues of $ 315 comma 000 and expenses of $ 100 comma 000. what is the result of operations for the month?

Net income= Revenues-Expenses

Net income=315000-100000

Net Income= $215000

(4) if the beginning balance of retained earnings is $ 160 comma 000, revenue is $ 100 comma 000, expenses total $ 65 comma 000, and the company declares and pays a $ 10 comma 000 dividend, what is the ending balance of retained earnings?

This can be found by below schedule:

Beginning Balance............................................................................160000

Add Revenue.......................................................................................100000

Less Expense.....................................................................................(65000)

Less Dividend.....................................................................................(10000)

Ending Balance of Retained Earnings........................................185000

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3 years ago

Waterproof Roofing Company has provided the following​ information:

Waterproof Roofing Company has provided the following information: