Answer: we will first add the options.
A. Maximize the market value of the equity.
B. Maximize net income given the current resources of the firm.
C. Minimize the tax impact on the proprietor.
D. Decrease long-term debt to reduce the risk to the owner.
E. Minimize the reliance on fixed costs.
The correct option is A. Maximize the market value of the equity.
Explanation: A sole proprietorship is generally owned by an individual. Therefore there is a usually a limitation to how much funds that can be invested in the business.
What this means is that this form of business is very simple and restrictive with regards to equity financing. In other words, equity financing is usually limited to the amount of funds that the sole proprietor is willing to invest in the business.
This is where good financial management comes in, this is to ensure that the invested equity bears fruit, and achieves high market value in order to yield revenue.
Lack of proper management and the invested equity will be squandered.
Answer:
The Journal entries are as follows:
On September 1,
(a) Cash A/c [8,500 × $14] Dr. $119,000
Excess of paid in capital A/c [8,500 × $1] Dr. $8,500
To treasury stock $127,500
(To record the treasury shares for cash)
(b) Cash A/c [8,500 × $11] Dr. $93,500
Excess of paid in capital A/c Dr. $20,000
Retained earnings A/c Dr. $14,000
To Treasury stock $127,500
(To record the restate entry for September 1)
Answer:
C. Ask for feedback only when you are open to hearing it.
Explanation:
Feedback refers to providing the information gathered after evaluating any specific action or event. Providing authentic feed-backs helps in promoting and improving the better quality of the original topic. It is more personalized and user-oriented. There are various ways by which authentic feed-backs can be given. Through messaging, writing, discussing over calls, and conversations over video calls helps in providing authentic feedback. Asking for feedback should be initiated by the person only when the person is willing to listen and acquire those feed-backs is an effective approach for encouraging authentic feedback.
Answer:
$165,500
Explanation:
Given that,
Sales (4,900 × $90) = $ 441,000
Cost of goods sold (4,900 × $38) = 186,200
Gross margin = $ 254,800
Selling and administrative expenses = $75,000
Net income = $ 179,800
Production costs per tennis racket total = $38
Variable production cost = $25
Fixed production cost = $13
Units produced = 6,000
Contribution margin:
= Sales - Variable production costs
= $441,000 - (4,900 × 25)
= $441,000 - $122,500
= $318,500
Fixed costs = Fixed production costs + Selling and administrative expenses
= ($13 × 6,000) + $75,000
= $78,000 + $75,000
= $153,000
Net income under variable costing:
= Contribution margin - Fixed costs
= $318,500 - $153,000
= $165,500
A gift card is something that anyone, of any age, can buy. This card works only at the certain business it is for. Such as a Burger King gift card, you can only use that card at Burger King. A checking account debit card is a card you can use in any situation, as long as they have the proper equipment. This card extracts money from your banking account, whereas the gift card has a set amount of money on it. Also, a checking account debit card is only given to people 18 and over, since signing a check is technically signing a contract, and using a debit card goes along the same lines as signing a check.
