Answer:
Net Income = $ 1.05 million; you can calculate the amount using the profit margin which will be the 7% from the sales.
ROE = 19.8%, the formula is Net Income/Owners Equity. To obtain the amount for Owners Equity you can use the information provided using the Assets and the Total Debt, the difference will be the amount for Owners Equity $ 5.3million.
ROA = 11.7% , the formula is Net Income/Assets.
C. sell; rise; fall
D. buy; fall; rise
Answer:
A. buy; rise; fall
Explanation:
As for the provided information, we know,
As the supply of money exceeds the demand people will have more investing power, accordingly people will buy more bonds,
as more and more people will try to buy the bonds the price for bond because of high demand will automatically due to demand and supply proportion will rise,
and then to control the demand of bond, and control the purchase of bond, the nominal interest rate provided on bonds will fall.
Answer:
PV= $2,106.18
Explanation:
Giving the following information:
Annual payment= $500
Number of periods= 5 years
Interest rate= 6%
To calculate the present value, first, we need to determine the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {500*[(1.06^5) - 1]} / 0.06
FV= $2,818.55
Now, the present value:
PV= FV/(1+i)^n
PV= 2,818.55/1.06^5
PV= $2,106.18
The present value of a $500 payment received at the end of each of the next five years at an appropriate discount rate of 6 percent is approximately $2,106.
The question you asked involves the concept of calculating the present value of a series of future payments, also known as an annuity. The present value of an annuity can be determined using the formula:
PV = PMT * [(1 - (1 + r)^-n)/r]
where 'PV' is the present value, 'PMT' is the periodic payment, 'r' is the discount rate (as a decimal), and 'n' is the number of periods.
Plugging in the values from your question we get:
PV = 500 * [(1 - (1 + 0.06)^-5) /0.06]
This will give us the present value of the cash flows. Thus, the present value for a $500 payment received at the end of each of the next five years, worth to you today at the appropriate discount rate of 6 percent is $2,106.
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Answer: $104,360
Explanation:
The cash collections for June will be;
= June Cash sales + (50 % *June credit sales ) + (43% * May credit sales) + ( 5% of April credit sales)
= 58,000 + (0.5 * 55,000) + (0.43 * 42,000) + ( 0.05 * 16,000)
= 58,000 + 27,500 + 18,060 + 800
= $104,360
Answer:
Planning.
Explanation:
Planning involves the creation of activities aimed at achieving organisational goals. It involves specific steps and contingency plans that are implemented by management to ensure success.
In this instance, Deutsch Bank is faced with the task of planning to make its name more popular in the United States.
Promotional activities can be undertaken to publicise Deutsch Bank's association with the PGA golf tournament. This will endear golf-lovers to the bank, as one of the players in making the tournament Na success.
Common Stock, 5,000,000 shares authorized, 2,000,000 shares outstanding $10,000,000
Paid-in Capital in Excess of Par - Preferred Stock $200,000
Paid-in Capital in Excess of Par - Common Stock $27,000,000
Retained Earnings $4,500,000
The following transactions affected stockholders' equity during 2018.
Jan. 1 - 30,000 shares of preferred stock issued at $22 per share.
Feb. 1 - 100,000 shares of common stock issued at $20 per share.
June 1 - Declared a 5% stock dividend on the outstanding common stock when the stock is selling for $25 per share.
June 20 - Issued the stock dividend declared on June 1.
July 1 - 30,000 shares of common treasury stock purchased at $10 per share.
Sept. 15 - 10,000 shares of treasury stock reissued at $11 per share.
Dec. 31 - The preferred dividend is declared, and a common dividend at $0.50 per share is declared.
Dec. 31 - Net income is $2,100,000.
Required:
1. Prepare Journal Entries to Record the Transactions.
2. Prepare the stockholders' equity section for Hatch Company at December 31, 2018. Show all supporting computations.
1. The preparation of the journal entries to record the stock transactions for the year is as follows:
Jan. 1, 2018: Debit Cash $660,000
Credit Preferred Stock $600,000
Credit Additional paid-in capital-Preferred Stock $60,000
Feb. 1, 2018: Debit Cash $2,000,000
Credit Common Stock $500,000
Credit Additional paid-in capital-Common Stock $1,500,000
June 1, 2018: Debit Retained Earnings $2,625,000
Credit Stock Dividend Distributable $2,625,000
June 20 Debit Stock Distributable $2,625,000
Credit Common Stock $525,000
Credit Additional paid-in capital-Common Stock $2,100,000
July 1, 2018: Debit Treasury Stock $150,000
Debit Additional paid-in capital- Common Stock $150,000
Credit Cash $300,000
Sept. 15, 2018: Debit Cash $110,000
Credit Treasury Stock $50,000
Credit Additional paid-in capital- Common Stock $60,000
Dec. 31, 2018: Debit Dividends: Preferred Stock $3,600,000
Debit Common Stock $1,092,500
Credit Dividends Payable $4,692,500
Dec. 31 Debit Income Summary $2,100,000
Credit Retained Earnings $2,1000,000
2. The Stockholders' Equity Section of Hatch Company's Balance Sheet at December 31, 2018, is as follows:
8%, $20 par value Preferred Stock:
Authorized stock, 1,000,000 shares
180,000 shares, Issued and Outstanding $3,600,000
Additional paid-in capital - Preferred Stock $260,000
Common Stock, $5 par value:
Authorized stock, 5,000,000 shares
2,215,000 shares outstanding $11,075,000
Additional paid-in capital- Common Stock $30,810,000
Treasury Stock (20,000 shares) ($100,000)
Retained Earnings $717,500
Supporting Calculations:
180,000 shares, Issued and Outstanding = $3,600,000 (3,000,000 + 600,000)
Additional paid-in capital - Preferred Stock $260,000 ($200,000 + $60,000)
Common Stock, $5 par value:
Authorized stock, 5,000,000 shares
2,215,000 shares outstanding = $11,075,000 ($10m + $500 + $525 + $50)
Additional paid-in capital- Common Stock = $30,810,000 ($27m + 1.5m + $2.1m - $150 + $60)
Treasury Stock = $100,000 ($150,000 - $50,000)
Retained Earnings = $717,500 ($4,500,000 + $2,100,000 - $2,625,000 - $4,692,500)
Data and Calculations:
Capital stock:
8%, $20 par value Preferred Stock:
Authorized stock, 1,000,000 shares
150,000 shares, Issued and Outstanding = $3,000,000
Additional paid-in capital - Preferred Stock $200,000
Common Stock, $5 par value:
Authorized stock, 5,000,000 shares
2,000,000 shares outstanding = $10,000,000
Additional paid-in capital- Common Stock = $27,000,000
Retained Earnings = $4,500,000
Transactions Analysis:
Jan. 1, 2018: Cash $660,000 Preferred Stock $600,000 Additional paid-in capital-Preferred Stock $60,000
Feb. 1, 2018: Cash $2,000,000 Common Stock $500,000 Additional paid-in capital-Common Stock $1,500,000
June 1, 2018: Retained Earnings $2,625,000 Stock Dividend Distributable $2,625,000 (2,000,000 + 100,000 x 5%) 105,000 shares at $25 per share
June 20, 2018: Stock Distributable $2,625,000 Common Stock $525,000 Additional paid-in capital-Common Stock $2,100,000
July 1, 2018: Treasury Stock $150,000 Additional paid-in capital- Common Stock $150,000 Cash $300,000
Sept. 15, 2018: Cash $110,000 Treasury Stock $50,000 Additional paid-in capital- Common Stock $60,000
Dec. 31, 2018: Retained Earnings: Preferred Stock Dividend $3,600,000 (180,000 x $20) Common Stock Dividend $1,092,500 (2,185,000 x $0.50) Dividends Payable $4,692,500
Dec. 31 Income Summary $2,100,000 Retained Earnings $2,1000,000
Learn more about recording stock transactions here: brainly.com/question/25819234
Answer:
Explanation:
Date Accounts and explanations Debit ($) Credit ($)
Jan. 1, 2018 Cash (39,900*$23 per share) 917,700
7% Preferred stock (39,900 shares * $20 per share) 798,000
Paid-in capital in excess of par - Preferred stock (39,900 shares * $3 per share) ($23 - $20) 119,700
(To record the issue of preferred shares with premium for cash)
Feb. 1, 2018 Cash (53,400*$21 per share) 1,121,400
Common stock (53,400 shares * $5 per share) 267,000
Paid-in capital in excess of par - Common stock (53,400 shares * $16 per share) ($21 - $5) 854,400
(To record the issue of preferred shares with premium for cash)
June. 1, 2018 Common stock (2,127,000 shares + 53,400 shares = 2,180,400)*$5 per share 10,902,000
Common stock (2,180,400 shares * 2 * $2.5 per share) 10,902,000
(To record stock split of 2 shares issued for every one share held)
July. 1, 2018 Treasury stock (32,000 shares * $10 per share) 320,000
Cash 320,000
(To record the purchase of treasury stock by cash)
Sept. 15, 2018 Cash 122,400
Treasury stock (10,200 shares * $10 per share) 102,000
Paid-in capital in excess of par - Treasury stock (10,200 shares * $2 per share) ($12 - $10) 20,400
Dec. 31, 2018 Income summary (Net income) 2,182,000
Retained earnings 2,182,000
(To record the net income at the end of the year)
Dec. 31, 2018 Retained earnings 1,348,380
Preferred dividends ($3,046,000 + $798,000)*7/100) 269,080
Common dividend (see note) (2,158,600*$0.5 per share) 1079300
(To record the declaration of dividends)
Working note:
Particulars In shares
Total shares issued 2,180,400
Less: Treasury shares 32,000
Add: Reissue of treasury shares 10,200
Total share to be accounted 2,158,600
Note: For stock split, no journal entry is required as there will be no change in the total value but only the number of shares will increase and per share will decrease keeping the total value same. Only memorandum entries are prepared.
The common stock dividend per share is confusing with another symbol whether it is $5 per share or $0.5 per share, so it is assumed as $0.5 per share is declared as dividend for common stock.
Note: Since no question is asked in this post, it is assumed that journal entries are required to record transactions that occurred during 2018.
Answer:
(A) The gains of the consumers from buying imports at the low price subsidized by foreign governments would exceed the losses of domestic producers. - The Unfair-Competition Argument
Some Governments subsidise production for their companies which means that their companies are able to sell goods cheaper than the producers in the countries they export to. This is considered Unfair competition.
B) Companies may exaggerate the degree to which their products are essential to national defense in order to obtain protection from foreign competition at the expense of consumers. - National-Security Argument
Some goods produced by domestic producers need to be protected for national defense purposes and sometimes some of these producers exaggerate the importance of their goods so that the Government can protect them from foreign competition thus enabling them to charge consumers higher prices.
(C) The country may be forced into deciding between implementing trade restrictions as threatened, which would make the society as a whole worse off, or backing down on its own threat, which would cause it to lose credibility in foreign affairs. - The Protection-as-a-Bargaining-Chip Argument
Sometimes a country might threaten to impose restrictions for instance the United States on China which would make things more expensive for Americans and if they do not then it would look like China won the argument which would make the US lose face.
(D) Opening up to free trade may impose hardship on some workers in the short run, but it also creates jobs in industries in which the country has a comparative advantage and enables the country as a whole to enjoy a higher standard of living. - The Jobs Argument
David Ricardo's Comparative Advantage principle believes that free trade will lead to more jobs in the country because the country will be able to properly harness those goods it is better at producing.
The given rebuttals address the Unfair-Competition Argument, the National-Security Argument, the Protection-as-a-Bargaining-Chip Argument, and the Jobs Argument in the debate over Restricting trade.
In this question, the student is asked to identify which arguments for restricting trade each of the given rebuttals is directed against. Here are the answers:
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