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laiz [17]
2 years ago
13

Where does the 32 come from in cash received for common stock issued

Business
1 answer:
worty [1.4K]2 years ago
4 0

A public company can issue common stock to the shareholders of acquisition targets, which they can then sell for cash. This approach is also possible for private companies, but the recipients of those shares will have a much more difficult time selling their shares.

Multiply the number of shares issued by the price per share. Doing this calculation gives you the amount of cash raised by the sale of the stock. For example, if the company issues 100 shares at $10 per share, the result is $1,000 of additional capital raised from stock issuances.
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How does pay structure affect company strategy ?
Dennis_Churaev [7]

Answer:

Economy

Explanation:

It affects per annum.

6 0
3 years ago
Effect of gains and losses on the accounting equation and financial statementsOn January 1, 2013, Liken Enterprises purchased a
Finger [1]

Answer:

Explanation:

Liken enterprises

Accounting equation:

Asset minus Liability = Capital

Jan 1 2013

Land (Asset) was purchased

$20,000 + 0 = $20,000

A.

In 2014

Land (Asset) was sold for cash at a profit of $2,500

*Land (Asset) is now zero

*Cash (Asset) is now $22,500

*Profit from the sale of Land (addition to capital also called retained earnings) is added to capital

Asset minus Liability = Capital

($20,000 - $20,000 + $22,500) minus 0 = $20,000 + $2,500

$22,500 + 0 = $22,500

B.

The statement of cashflow only recognizes cash movement in transactions and not accruals.

Therefore the sale of Land will be recorded as $22,500 in the cashflow statement

C.

Land being an Asset, all of its transactions at the point of purchase and disposal would have been treated within the balance sheet.

However where a profit or loss is arrived at in the disposal of the asset, it is then recognized in the income statement.

In this case $2,500 will be recognized in the income statement as profit on disposal of Land

2.

If land was sold for $18,500 (this is at a loss of $1,500)

A.

*Land (Asset) is now zero

*Cash (Asset) is now $18,500

*Loss from the sale of Land (reduction in capital being net operating loss) is deducted from existing capital balance

Asset minus Liability = Capital

($20,000 - $20,000 + $18,500) minus 0 = $20,000 - $1,500

$18,500 + 0 = $18,500

B.

In this case $1,500 will be recognized in the income statement as Loss on disposal of Land

C.

$18,500 will be recorded in the cashflow statement recognising the cash received from the sale of land at a loss

8 0
2 years ago
Read 2 more answers
The following data have been provided by Moretta Corporation, a company that produces forklift trucks: Budgeted production 3,400
zloy xaker [14]

Answer:

B) $135 F

Explanation:

The computation of the variable overhead efficiency variance for supplies cost is given below:

= (Actual hours - Standard hours) × Standard Rate

= (10,930 hours - 3,800 × 2.9 hours) × $1.50 per hour

= (-90 hours) × $1.50 per hour

= $135 favorable

Hence, the variable overhead efficiency variance for supplies cost is $135 favorable

Therefore the option b is correct

8 0
3 years ago
Which of the following modes of entry is suitable for service firms where the risk of losing control over the management skills
ra1l [238]

Answer: LICENSING

Explanation: Licensing is a business arrangement process whereby an organization or business entity with already existing product and good market prospect allows another company in another country or society to produce it's Products, in return the company licensed to produce the product will pay certain percentage of the Revenue from the sale of the product to the business or organization that issued the License. In this case the company will not face the risk of losing control over the management skills or technological know-how.

3 0
3 years ago
A customer deciding to rent a movie from home instead of going to the movie theater illustrates which of Porters Five Forces?
Mice21 [21]

Answer:

Threat of substitutes.

Explanation:

In this case, the buyer tries to obtain the same benefit at a lower cost and does so through a substitute product. This is a classic example of: Threat of substitutes.

5 0
3 years ago
Read 2 more answers
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