Answer:
common stock book value: 273.5 dollars
Explanation:
(equity - preferred stock) / outstanding shares
In this case:
(common stock + RE) divide over shares outstanding
20,000 shares x $ 20 = 400,000
Retained Earnings:
5,000,000 + 70,000 = 5,070,000
Total Common Equity: 5,470,000
Common stock: 20,000
5,470,000 / 20,000 = 273.5
The book value per share of Meyer's common stock is $253.5. This is calculated by dividing the total equity ($5,070,000) by the number of common shares outstanding (20,000).
The book value per share is the value of a company's equity divided by the total number of common shares outstanding. It is a financial ratio that investors use to assess whether a company's stock is overpriced or underpriced.
In this case, the total equity of Meyer, Inc. is calculated by adding its retained earnings to its net income for the year. This totals to $5,070,000. Since there are 20,000 shares of common stock, the book value per share of Meyer's common stock would be $5,070,000 divided by 20,000, which equals to $253.5.
This represents the intrinsic value of a company, which could be significantly different from its market price depending on numerous factors such as the company's earnings potential and risk profile.
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Answer: Tell your manager about this offensive behavior.
Explanation:
If I overhear a group of your co-workers laughing at some crude jokes about a few customers, the most likely thing for me to do will be to inform my manager about this offensive behavior.
Customers are vital to every business and should be treated right, without the customers, there isn't any business at all. Therefore, I'll inform my manager so that he'll have an idea of what is going on and then call them to order and explain to them that customers should be treated right and respected.
Answer:
b. $800
Explanation:
The calculation of maximum loss from this position is shown below:-
Maximum Loss from this position = (Assume figure × Call premium) + (Assume figure × Put premium)
= (100 × $5) + (100 × $3)
= $500 + $300
= $800
Therefore for computing the maximum loss from this position we simply applied the above formula.
Answer:
The optimal stocking level is 45 muffins.
Explanation:
First we have to calculate the Overage cost Co = Purchase price - Salvage value = $0.2 - 0 = $0.2
Then the Underage cost Cu = Selling price - Purchase price =$0.80 - $0.2 = $0.60
Service level = Cu / (Cu + Co) = $0.60/($0.60+$0.2) = $0.75
Hence, optimal stocking level = Minimum demand + Service level *(Maximum demand - Minimum demand)
optimal stocking level = 30 + 0.75*(50-30) = 45
The optimal stocking level is 45 muffins.
Optimal stocking level = 68.75 Muffins
2. Depreciation expense
3. Issuance of a note payable
4. Increase in inventory
Answer:
Patent-investing activity
depreciation expense-operating activity
issuance of note payable-financing activity
Increase in inventory-operating activity
Explanation:
The purchase of patent as intangible asset is reported as an investing activity item as an outflow of cash from the business.
Depreciation expense is meant to added to net income in arriving at the net cash flows from operating activities
Issuance of a note payable is a financing item under the financing activities' segment of the cash flow as an inflow.
Increase in inventory is increase in net working capital which is deducted as an operating activity item .
Answer:
1. Purchase of a patent - Investing activities
2. Depreciation expense - Operating activities
3. Issuance of a note payable - Financing activity
4. Increase in inventory - Operating activity
Explanation:
Operating activity of cash flows include cash inflows and cash outflows from day to day business activities. This includes cash flows use from ongoing business activities.
Investing activity of cash flows includes cash inflows and cash outflows from investments of the business. This includes purchase of assets, sale of assets, investment in securities.
Financing activity of cash flows include cash inflows and cash outflows to fund the company. The activities that are incurred to fiance the business are classified as financing activity.
Answer:
Ending Inventory $ 64,000
Explanation:
To define the final inventory of the company it's necessary to find the cost of good of the period.
As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.
Total Sales Revenue had to be the net value after returns and discounts as it's detailed.
Income Statement
Sales revenue $ 300,000
Cost of goods sold -$ 171,000
Gross Profit $ 129,000 43%
Beginning Inventory $ 60,000
Purchases $ 175,000
Cost of goods sold -$ 171,000
Ending Inventory $ 64,000
Solution and Explanation:
The calculation of tax saving is shown below:
if B is getting the whole amount of salary the combined FICA tax liability of B and S Corp will be:
= $110000 multiply with 15.3 divide by 100
= $16830
If B is getting $50000 as salary the combined FICA tax liability of B and S corp will be
= $50000 multiply with 15.3 divide by 100
= $7650
thus the tax saving will be :
$16830 minus $7650
= $9180
The IRS can deem this arrangement unfit as make it mandatory for B to get the whole amount as salary. In that case, no change will take place in the tax liability.