Ratios that measure the income or operating success of a company for a given period of time are.

A $50 par value convertible preferred stock is convertible into 5 shares (exercise price of $10). The preferred is selling for $

m_a_m_a [10]

Answer:

33.3%

Explanation:

Cost of one common stock =$12

Cost of 5 common stock = $60

Price of preferred stock = $75, which is more than $60

Hence, it would not make sense to convert the preferred stock shared into common stock as of now.

Now, if P is $20, then price of 5 stocks:

= 5 × 20

= $100

Hence, the Preferred stock price must increase to at least $100 otherwise there will be arbitrage opportunity.

Increase in price:

= price of 5 stocks - Price of preferred stock

= $100 - $75

= $25

% increase = (Increase in price ÷ Price of preferred stock) × 100

= (25 ÷ 75) × 100

= 33.3%

7 0

4 years ago

Journalize the following sales transactions for Antique Mall. Explanations are not required. The company estimates sales returns

dolphi86 [110]

Answer:

Antique Mall

Journal Entries:

Jan. 4 Debit Accounts Receivable $14,000

Credit Sales Revenue $14,000

credit terms are n/30.

Debit Cost of goods sold $7,000

Credit Inventory $7,000

Jan. 8 Debit Sales Returns $400

Credit Accounts Receivable $400

Debit Damaged Goods $150

Credit Cost of goods sold $150

Jan. 13 Debit Cash $13,600

Credit Accounts Receivable $13,600

Jan. 20 Debit Accounts Receivable $4,900

Credit Sales Revenue $4,900

credit terms are 1/10, n/45, FOB destination.

Debit Cost of goods sold $2,450

Credit Inventory $2,450

Jan. 20 Debit Freight-out Expense $70

Credit Cash $70

Jan. 29 Debit Cash $4,851

Debit Cash Discounts $49

Credit Accounts Receivable $4,900

Explanation:

a) Data and Analysis:

Jan. 4 Accounts Receivable $14,000 Sales Revenue $14,000

credit terms are n/30.

Cost of goods sold $7,000 Inventory $7,000

Jan. 8 Sales Returns $400 Accounts Receivable $400

Damaged Goods $150 Cost of goods sold $150

Jan. 13 Cash $13,600 Accounts Receivable $13,600

Jan. 20 Accounts Receivable $4,900 Sales Revenue $4,900

credit terms are 1/10, n/45, FOB destination.

Cost of goods sold $2,450 Inventory $2,450

Jan. 20 Freight-out Expense $70 Cash $70

Jan. 29 Cash $4,851 Cash Discounts $49 Accounts Receivable $4,900

8 0

3 years ago

Pesto Company possesses 80 percent of Salerno Company’s outstanding voting stock. Pesto uses the initial value method to account

hichkok12 [17]

Answer:

The retainesd earnings figure will increase by 464,400 dollars

Explanation:

Parent Company premium:

Premium: 750,000 / 20 years = 37,500 depreciation per year

unamortized portion at Dec 31th 2013:

amortized: 750,000 - 37,500 x 4 years = 150,000

unarmortized: 750,000 - 150,000 = 600,000

We must reverse 40% of the premium as is within the same company:

600,000 x 40% = 240,000

Subsidiary Discount:

16,500,000 X 40% = 6,600,000

Purchase at 96.6

Discount of 3.4 = 6,600,000 x 3.4% = 224,400

We must reverse this as is part of the same company.

In total retained earnings will increase by

240,000 + 224,400 = 464,400 dollars

8 0

3 years ago

For any external resources that are used on the project, such as subcontractors, consultants, or vendors, the______ will define

Anastaziya [24]

Answer: project manager

Explanation: The project manager's role. A project manager is a person who is responsible for initiating, preparing, designing, implementing, tracking, overseeing and closing a project successfully. A project manager is a person in charge for both smaller and larger decision-making.

Hence, as he or she is responsible for successful completion it is the responsibility of the project manager to define, approve and acquire all the documentation needed regarding the project.

6 0

3 years ago

A specific present value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to th

tekilochka [14]

Answer:

True

Explanation:

This is true because if we add all the discounts factor of a particular rate 10% (suppose) for 10 years (suppose). Then the sum will be equal to the annuity factor at 10 years time. This is what the statement is saying above so it is 110% true.

4 0

3 years ago