What is one benefit of buying preferred stocks?

As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 20% of Nursery Supplies Inc

Natalija [7]

Answer:

Nursery Supplies at year-end 76,000,000

Gain on investment 12,000,000

Explanation:

Considering is considered a long-term investment for Florists International and the percentage of owership is significant we use equity method.

value of the investment at year end:

begining 67,000,000

income 60,000,000 x 20% = 12,000,000

cash dividends 10,000,000 shares x 1.5 x 20% = (3,000,000)

ending investment 76,000,000

8 0

3 years ago

Larned Corporation recorded the following transactions for the just completed month. $80,000 in raw materials were purchased on

sesenic [268]

Answer and Explanation:

The Journal entry is shown below:-

a. Raw material Dr, $80,000

To Account payable $80,000

(Being purchase of raw material is recorded)

Here we debited the raw material as it increased the assets and we credited the accounts payable as it also increased the liabilities

b. Work in process Dr, $62,000

Manufacturing overhead Dr $9000

To Raw material $71,000

(Being raw material used is recorded)

Here we debited the work in progress , the manufacturing overhead as it increased the assets and expenses and credited the raw material as it decreased the assets

c. Work in process Dr, $101,000

Manufacturing overhead Dr, $11,000

To Cash $112,000

(Being paid to labor is recorded)

Here we debited the work in progress , the manufacturing overhead as it increased the assets and expenses and credited the cash as it decreased the assets

d. Manufacturing overhead Dr, $175,000

To Accumulated depreciation-Equipment $175,000

(Being manufacturing overhead is recorded)

Here we debited the manufacturing overhead as it increased the expenses and we credited the accumulated depreciation of depreciation as it reduced the assets

5 0

3 years ago

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $6

Tomtit [17]

Answer:

present value $ 1,026.16

future value $ 1,539.98

Explanation:

Present Value = $ 100 * 1/(1.07) ^ 1 + $ 100 * 1/(1.07) ^ 2 +$ 100 * 1/(1.07) ^3 + $ 200 * 1/(1.07) ^4 + $ 300 * 1/(1.07) ^5 +$ 600 * 1/(1.07) ^6

=93.45+ 87.34+81.62+152.20+213.23+398.32

= $ 1,026.16

therefore, the correct value is $ 1,026.16

b. Future Value = Present Value * ( 1+ Rate of Interest ) ^ Time

= $ 1,175.63 * ( 1+0.07) ^ 6

= $ 1,539.98

Hence the correct answer is $ 1,539.98

5 0

3 years ago

Juicy Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the mont

KatRina [158]

Answer: Please see explanation column for answer

Explanation:

Recasting the income statement to emphasize contribution margin.

Juicy Beauty Operating Income Statement, June 2017

Units sold 20,000

Revenues $200,000

Variable costs(subtract):

Variable manufacturing costs $110,000

Variable marketing costs $10,000

Total variable costs $120,000

Contribution margin $80,000

Fixed costs

fixed manufacturing costs 40,000

Fixed marketing and administrative costs 20,000

Total fixed cost $60,000

Operating income $20,000

Working for income statement above =

Contribution margin = Revenue -Total variable cost =$200,000- ($110,000 + $10,000) - $80,000

Operating income= Contribution margin - Total fixed cost = $80,000 - $($40,000 +$20,000) -=$20,000

2 The contribution margin percentage and breakeven point in units and revenues for June 2017.

Contribution margin percentage = ,Contribution margin/ Revenue x 100%

= $80,000/ $200,000 x 100= 40 %

Contribution margin per unit = ,Contribution margin/ units sold

80,000 / 20,000= $4 per unit

Break even point units = Total fixed cost/ ,Contribution margin per unit

= $60,000/ $4= 15,000units

Break even revenue=

we first calculate the selling price = Revenue / units sold = $200,000/ 20,000 =$10

Break even revenue=Break even units x per unit sold = $15,000 x $10 = $150,000.

3. Margin of safety = units sold - break even point unit

20,000 - 15,000 =5000 units

4. If the sales is 16,000 and tax is 30% , Net income is

Units sold 16,000

Revenue $160,000

Contribution margin $64,000

Total fixed cost - $60,000

Operation income $4,000

tax at 30 % - $ 1200

Net income $2,800

working

Revenue = units sold x sale per unit = 16,000 x $10 = $160,000

Contribution margin = Revenue x contribution margin percentage = $160,000 x 40% = $64,000

Operation income = contribution margin - fixed costs= $64,000 - $60,000 = $4000

Tax = 30% of 4000 = $1200

Net income = $4000 - $1200 = $2,800

3 0

3 years ago

Read 2 more answers

Realizing that it was time to invest in an updated information system, a young ceo made the following announcement in his weekly

Alexeev081 [22]

I had to look for the options and here is my answer:

Based on the given scenario above regarding the changes that a young CEO made in his company, which resulted in the poor interpretation among his employees, the progressive companies at present would now incorporate strategies that continuously adapt a FORMAL AND INFORMATION ORGANIZATION THAT AIDS IN CHANGES.

5 0

2 years ago