What will be the credit and debit

The following information was taken from the financial statements of Fox Resources for December 31 of the current fiscal year: C

WINSTONCH [101]

Answer:

Fox Resources

Units of common stock in issue = $5,000,000 divided $20 = 250,000 units

A. Earnings per share = Net income (after deducting preferred stock interest) divided by number of outstanding shares in issue

We assume the Net income provided already has deducted interest on preferred stock

= 600,000/250,000

= $2.4

B. Price Earning Ratio

= share price divided by the Earnings per share

= 20/2.4

= 8.33

C. Dividend Per share

= Dividend paid divided by number of common stock issued & outstanding

= $125,000/250,000

= $0.50

6 0

3 years ago

It is important to manage customer relationships because customers provide a great deal of value to the company if they remain c

qwelly [4]

Answer:

Customer lifetime value predicts how much profit is associated with a customer during the course of their lifetime relationship with a company.

Explanation:

It is important to manage customer relationships because customers provide a great deal of value to the company if they remain customers for many years.

Customer lifetime value is greater for companies who have loyal customers as compared to customers who are one time only. They add less value to the company as customers are also a source of promotion for the company.

7 0

3 years ago

The following data are taken from the unadjusted trial balance of the Westcott Company at December 31, 2017. Complete the worksh

Alex17521 [72]

Answer:

The total of adjusted trial balance debit and credit side is $159 after posting the given transactions. The sheet is attached with the full working showing both of the trial balances - un-adjusted and adjusted one.

Explanation:

Following journal entries were posted in the trial balance to adjust it.

Transaction a:

Debit: depreciation expense $3

Credit: accumulated depreciation $3

Transaction b:

Debit: salaries expense $6

Credit: accrued salaries $6

Transaction c:

Debit: Unearned revenue $12

Credit: Revenue $12

When unearned revenue is earned, it is removed from unearned revenue by debiting it and then it is credited to the revenue for the period.

Transaction d:

Debit: supplies expense $9

Credit: supplies $9

Transaction e:

Debit: insurance expense $15

Credit: Insurance prepaid $15

When the insurance is expired, it is deducted from the prepaid insurance by crediting it from prepaid insurance account and it is debited to insurance expense account.

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3 0

3 years ago

A process currently services an average of 43 customers per day. Observations in recent weeks show that its utilization is about

love history [14]

Answer:

The correct answer is 31 customers per day.

Explanation:

Consider the current capacity requirement as = x

Management wants to have a capacity cushion = 8%.

So the utilization is required = 100% - 8% = 92%

A process of currently services an average of 43 customers per day and utilization is 90%.

Expected Demand=70%= 70 ÷ 100 = 0.70

Current utilization = 90% = 0.90

Let Capacity requirement = X

Capacity requirement ÷ required utilization = Expected Demand rate × current service rate ÷ current utilization rate

X ÷ 0.92 = 0.70 × 43 ÷ 0.90

X = 0.70 × 43 ÷ 0.90 × 0.92

= 30.76 or 31

Needed capacity requirement is 31 customer per day.

6 0

3 years ago

Flannery Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases:

VashaNatasha [74]

Answer:

Cost per letter for the correspondence activity= $ 8.75

Explanation:

Flannery Company

Given

Activities Allocated Costs Allocation Base

Account inquiry (hours)$ 77, 000 2,600 hours

Account billing (lines) $ 38, 000 19,000 lines

Account verification (accounts) $ 20,000 30,000 accounts

Correspondence (letters) $ 14,000 1, 600 letters

Activities Northeast Office Midwest Office

Account inquiry (hours) 100 hours 200 hours

Account billing (lines) 10,000 lines 9,000 lines

Account verification (accounts) 1 ,000 accounts 650 accounts

Correspondence (letters) 50 letters 110 letters

Calculations

Cost per letter for the correspondence activity= Total Correspondence/ Total No of letters

Cost per letter for the correspondence activity= 14000/1600= 8.75

Cost per letter for the correspondence activity= $ 8.75

We divide the activity cost with the corresponding cost driver to get the cost per unit of activity.

4 0

3 years ago