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3 years ago

What is meant by goal maximization of the shareholders' wealth?

Business

1 answer:

shepuryov [24]3 years ago

4 0

Answer:

the objective of all corporate activity is called goal maximization of the shareholders' wealth.

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When cash is received, it is considered negative cash flow. a. True b. False?

mash [69]

True......................................

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4 years ago

Read 2 more answers

Assume that total costs assigned to the setup activity cost pool in June are $60,000 and 50 setups were completed in June. Furth

Zolol [24]

Answer:

Allocated cost= $14,400

Explanation:

First, we need to calculate the allocation rate for setup:

Cost allocation rate= total estimated costs for the period/ total amount of allocation base

Cost allocation rate= 60,000 / 50

Cost allocation rate= $1,200 per setup

Now, we can allocate setup cost to G10:

Allocated cost= 1,200*12

Allocated cost= $14,400

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3 years ago

On May 1, 2020, Vaughn Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contr

Alchen [17]

Answer:

May 1, 2020 - No Entry

Explanation:

IFRS 15 requires an entity to recognise revenue when entity transfers the goods or services to the customer.

Transfer of the mower happens on May 31, 2020, this is the date at which Revenue is recognised.

The cash is also paid on May 15, 2020, according the accruals concept, no entry must be done on May 1,2020. Only when the payment occurs should there be a record in Vaughn books.

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3 years ago

On January 1, Year 2 Grande Company had a $15,000 balance in the Accounts Receivable account and a zero balance in the Allowance

hjlf

Answer:

$62,500

Explanation:

As we know that cash flow statement records the cash inflow and cash outflow and ignored all other transactions which are not made in cash

Since in the question it is given that $62,500 is cash collected from account receivable and the same is to be shown in the operating activities in a positive sign that indicates an inflow of cash

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3 years ago

A university is trying to determine what price to charge for tickets to football games. At a price of $24 per ticket, attendan

m_a_m_a [10]

Answer: Price per ticket should be charged in order to maximize revenue is $15.

70000 people will attend at this price.

Explanation:

Let 'x' represent the decrease .

Using the given information,

Price per ticket = 24 - 3x

Average no. of people that watch the game = 40000 + 10000x

Additional money spent by every person = 6(40000 + 10000x)

Revenue [R(x)] = Price per ticket $\times$ Average no. of people that watch the game + Additional money spent

Revenue [R(x)] = (24 - 3x) $\times$ (40000 + 10000x) + 6(40000 + 10000x)

On solving the above equation we get ,

Revenue [R(x)] = -30000 $x^{2}$ + 180000x + 1200000

In order to find the critical point we'll differentiate the following with respect to x;

R'(x) = -60000x + 180000

∵ R'(x) = 0

x = 3

Thus, the price per ticket that should be charged in order to maximize revenue is (24 - 3 $\times$ 3 = 24 - 9 = $15)

People that will attend at this price = (40000 + 10000 $\times$ 3) = 70000

7 0

3 years ago

What is meant by goal maximization of the shareholders' wealth?​

What is meant by goal maximization of the shareholders' wealth?