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Allisa [31]
3 years ago
5

Q 11.5: A corporation purchases 4,000 shares of its own $5 par common stock for $8 per share, recording it at cost. What will be

the effect on total stockholders' equity?
Business
1 answer:
BaLLatris [955]3 years ago
7 0

Answer:

decrease of 32,000 dollars

Explanation:

the treasury sotck are recorded at cost:

4,000 shares x $8 per share = $32,000

the treasury stock is a contra.equity account that decreases the total stockholders' equity

As this shares are no longer outstading they are held by the firm thus, the capital fund of the firm are lower.

Also notice asset decrease as well because we use cash to acquire them.

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The income statement for Stretch-Tape Corporation reports net sales of $540,000 and net income of $65,700. Average total assets
Mnenie [13.5K]

Answer:

7.3%; 12.17%; 0.6 times; 15.95%

Explanation:

Return on assets:

= Net Income ÷ Average total assets

= ($65,700 ÷ $900,000) × 100

= 7.3%

Profit Margin:

= Net Income ÷ Net Sales

= ($65,700 ÷ $540,000) × 100

= 12.17%

Asset Turnover:

= Net Sales ÷ Average Total Assets

= $540,000 ÷ $900,000

= 0.6 times

Return on Equity:

= Net Income before dividend ÷ Equity

= [($65,700 + $30,000) ÷ $600,000] × 100  

= ($95,700 ÷ $600,000] × 100  

= 15.95%

8 0
3 years ago
In collaborative problem solving, it is important for the initiator to:
Solnce55 [7]

Answer:

The correct answer is B

Explanation:

Collaborative Problem Solving is the tool or a technique which is used for solving the problems and it makes the explicit respond.

The initiator is the person who initiates the response in the problem in order to solve the problems.

So, the vital as well as primary thing for the initiator is to avoid making the evaluative or measured conclusions as well as attribute the motives or purpose to the respondent, whose query it is.

3 0
3 years ago
Which of the following is the first step in Kotter's eight-step plan for implementing change?A) Create a new vision to direct th
forsale [732]

Answer:

The correct answer is letter "B": Establish a sense of urgency by creating a compelling reason for why change is needed.

Explanation:

American educator John Kotter (born in 1947) in his book "<em>Leading Change</em>" (2011) proposed an eight-step method to generate change within an organization. The first of them is to Create Urgency, where potential risks are identified, and scenarios that illustrate what might happen in the future are created. Also, honest discussions are carried out to offer diverse and compelling reasons of why the change is needed.

4 0
3 years ago
How can choosing the right institution help you manage money effectively?
Ratling [72]

Answer:

You may get a better job, or it may make you more responsible. The money is the main thing, you will get paid better, so you wont have to worry abt money i guess.

Explanation:

3 0
3 years ago
Large data units are broken into smaller pieces by a process called
dsp73

The answer in the description above is segmentation. This is the process of which large data undergone into having their properties to be broken into small pieces in which will help in having them to fit with a specific TCP segment.

6 0
3 years ago
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