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3 years ago

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Tucker Electronic System's current balance sheet shows total common equity of $3,125,000. The company has 100,000 shares of stoc

k outstanding, and they sell at a price of $52.50 per share. By how much do the firm's market and book values per share differ

1 answer:

ELEN [110]3 years ago

4 0

Answer:

$27.50

Explanation:

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Suppose you are thinking of starting your own small business. Consider how your accounting profit is different than your economi

My name is Ann [436]

Answer:

IV

YES

Explanation:

Accounting profit= total revenue - explicit cost

Total revenue =price x quantity sold

Explicit cost includes the amount expended in running the business.

They include rent , salary and cost of raw materials

Economic profit = accounting profit - implicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

economic profit includes the opportunity cost of funds

In some industries, only normal profit is earned in the short run. For example, in a perfect competition and monopolistic competition, only normal profit is earned in the long run due to free entry and exit of firms in the industry. thus if only normal profit would be earned, the company should still go ahead and establish

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3 years ago

All else being equal, a decrease in ________ would shift the long-run aggregate supply curve (lras) to the left.

Simora [160]

The aggregate supply curve shifts to the left as the price of necessary inputs rises, potentially resulting in lower output, higher unemployment, and higher inflation.

alterations in the overall supply

The aggregate supply/demand model illustrates the macroeconomic interactions between total supply and total demand as well as the factors that influence either total supply or total demand for the economy.

The aggregate supply curve moves to the right when productivity increases or the cost of necessary inputs lowers, allowing for a combination of lower inflation, increased production, and less unemployment.

The aggregate supply curve shifts to the left as the price of necessary inputs rises, potentially resulting in lower output, higher unemployment, and higher inflation.

to know more about aggregate supply curve

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8 0

2 years ago

Green Caterpillar Garden Supplies Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at t

Zolol [24]

Answer:

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

Statement #1: Green Caterpillar’s pool of relatively liquid assets, which are available to support the company’s current and future sales, decreased from Year 1 to Year 2.

This statement is <u>FALSE</u>, because:

Green Caterpillar’s total current asset balance actually increased from $15,750 million to $19,687 million between Year 1 and Year 2

Statement #2: On December 31 of Year 2, Green Caterpillar Garden Supplies Inc. had $8,072 million of actual money that it could have spent immediately.

This statement is <u>TRUE</u>, because:

The funds recorded in Green Caterpillar’s cash and equivalents account represents funds that are either cash or can be converted into cash almost immediately

Statement #3: If Green Caterpillar ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders.

This statement is <u>INCORRECT</u>, because:

Common shareholders are treated as residual investors

Based on your understanding of the different items reported on the balance sheet and the information they provide, if everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to <u>INCREASE</u> if the firm issues $3 million of new common stock.

If common stocks are issued, then the journal entry should be:

Dr Cash 3,000,000

Cr Common stock 3,000,000

4 0

3 years ago

The current price of a turkey sandwich is $6. If kyle is currently buying five turkey sandwiches a week, he:_______

Vsevolod [243]

The utility is not maximized since the marginal utility gained from the fifth sandwich is greater.

In economics, utility refers to the entire satisfaction or benefit gained from consuming an item or service. Consumer utility maximization is commonly assumed in the economic theories based on the rational choice.

In economics, the marginal utility is the additional satisfaction (utility) that a buyer receives by purchasing an additional unit of the product or the service. It computes utility once the first product is consumed (the marginal amount).

Therefore, the utility is not maximized , from the fifth sandwich onwards the marginal utility is more.

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4 0

2 years ago

On January 1, 2019 Miller Corporation had retained earnings of $8,000,000. During 2019, Miller reported net income of $1,500,000

Stels [109]

Answer:

$9,000,000

Explanation:

As we know, in preparing accounts, the following steps are considered:

From all the revenues earned, all the expenses are deducted, and then we get net revenues.

From such net revenues all the taxes are provided.

Then all the appropriation in the form of dividend is provided.

Firstly to preference and then to equity.

After that all the remaining earnings are added to retained earnings.

In the given instance,

Net Income - Dividend = $1,500,000 - $500,000 = $1,000,000

Now this will be added to opening retained earnings.

Therefore, retained earnings balance at year end = $8,000,000 + $1,000,000

= $9,000,000

4 0

3 years ago