Aspin Corporation’s charter authorizes issuance of 2,100,000 shares of common stock. Currently, 1,400,000 shares are outstanding, and 300,000 shares are being held as treasury stock. The firm wishes to raise $44,000,000 for plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $55 per share.a.  What is the maximum number of new shares of common stock that the firm can sell without receiving further​authorization?b.  Judging on the basis of the data given and your finding in part a in part a, will the firm be able to raise the needed funds without receiving further​ authorization?c.  What must the firm do to obtain authorization to issue more than the number of shares found in part a?

Answers

Answer 1
Answer:

Answer:

a) Maximum no. of shares that the company can issue

= Total Authorized Shares - Shares Outstanding

= 2100000 - 1400000

= 700,000

b) Number of shares to be issued to raise $44,000,000 at $55 per share

= 44,000,000 / 55

= 800,000

No, the firm would not be able to raise the needed fund.

c) The company will have to increase the number of authorized shares which would involve making amendments to its charter of incorporation. The amendments to the charter can be done only by vote of the existing shareholders.


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Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of the year, her accountant computes her accrual basis income that is used on her tax return. For 2015, Selma had cash receipts of $1.4 million, which included $200,000 collected on accounts receivable from 2014 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2015, she had $250,000 in accounts receivale from customers, all from 2015 sales.Required:
a. Compute Selma's accrual basis gross receipts for 2015.
b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2020 was $1,300,000. At the end of 2019, she had merchandise on hand with a cost of $150,000. At the end of 2020, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2015.

Answers

Answer:

a. $1,350,000

b. $200,000

Explanation:

The computation is shown below;

a. Accrual basis gross receipts for the year 2015 is

= Cash receipts + account receivable from year 2015 - collection in account receivable - proceeds of bank loan

= $1,400,000 + $250,000 - $200,000 - $100,000

= $1,350,000

b. Now the Gross income or profit is

As we know that

Gross profit is

= Sales - cost of goods sold

= $1,350,000 - ($1,300,000 + $150,000 - $300,000)

= $1,350,000 - $1,150,000

= $200,000

Final answer:

Selma's accrual basis gross receipts for 2015 would be $1,350,000, and her gross income (profit) from merchandise sales for the same year would be $200,000.

Explanation:

To calculate Selma's accrual basis gross receipts for 2015, we need to adjust her cash receipts, which totals up to $1.4 million. The receipts include $200,000 that was actually earned in 2014 (collected in 2015) and a $100,000 bank loan that does not count as earned revenue. So, we subtract these from the total receipts: $1,400,000 - $200,000 - $100,000 = $1,100,000. And we add the amounts receivable at the end of 2015 which is $250,000. So, Selma's accrual basis gross receipts for 2015 is $1,350,000 ($1,100,000 + $250,000).

For the second part of your question, Selma's gross income (profit) from merchandise sales for 2015 can be computed by calculating the cost of goods sold (COGS) and subtracting this from the gross receipts calculated above. Start by adding the cost of merchandise on hand at the end of 2019 ($150,000) to the purchases made in 2020 ($1,300,000). This gives us a presupposed cost of goods available for sale. We then subtract the cost of the merchandise on hand at the end of 2020 ($300,000). The COGS is, therefore, $1,150,000. Subtraction the COGS from the gross receipts gives us a gross income of $200,000 ($1,350,000 - $1,150,000).

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Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus

Answers

Answer:

Real Surplus is $200 billion

Explanation:

Inflation = 14%

Debt = $4 trillion = $4,000 billion

Nominal deficit = $360 billion

Real Deficit = Nominal deficit - (Inflation*Debt)

= $360 - 14% * 4,000

= $360 - 560

= -$200

Hence, the answer is Real Surplus of $200 billion

Last year there was no change in either the raw materials or the work in process beginning and ending inventories. However, finished goods, which had a beginning balance of $25,000, increased by $15,000. If the manufacturing costs incurred totaled $600,000 during the year, the cost of goods available for sale must have been:_______.a. $585,000
b. $600,000
c. $610,000
d. $625,000

Answers

Answer:

d. $625,000

Explanation:

cost of goods available for sale = cost of goods manufactured during the current period + finished goods inventory at the beginning of the period

  • cost of goods manufactured during the current period = $600,000
  • finished goods inventory at the beginning of the period = $25,000

cost of goods available for sale = $600,000 + $25,000 = $625,000

cost of goods sold = cost of goods available for sale - ending inventory = $625,000 - $40,000 = $585,000

Final answer:

The Cost of Goods Available for Sale is calculated by adding the Beginning Inventory and the Manufacturing Costs together, resulting in a total of $625,000.

Explanation:

To compute the Cost of Goods Available for Sale, you would add your Beginning Inventory (the cost of the goods on hand at the start of the period) to the cost of the purchases made during the period - which, in this case, would be the manufacturing costs. Given that there were no changes in the raw materials or work in process inventory and since the manufacturing costs incurred totaled $600,000, we can outline the following:

Beginning Inventory of finished goods = $25,000

Manufacturing costs incurred = $600,000

Thus, to calculate the Cost of Goods Available for Sale:

Cost of Goods Available for Sale = Beginning Inventory + Manufacturing Costs=> $25,000 + $600,000 = $625,000

So, the Cost of Goods Available for Sale is $625,000.

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Changing an employee's hourly wage rate would be recorded where? a. employee update file b. special journal c. employee transaction file d. employee master file

Answers

Answer:

(D). Employee master file.

Explanation:

An employee master file is a file kept by an organization that contains data, records and information on the employee.

Information such as; employee's name, address, date of birth, date of hire, sales record, salary to be received, and other payment details are contained in the master file.

If an employee's hourly wage rate is changed, it will be recorded in the employee's master file.

Amie was recently hired at Kreigmeister Industries as a repairperson. She was informed that if she chose not to join the union representing her fellow repair workers, she would still have to pay a fee to the union. Apparently, Kreigmeister operates under a(n):A. illegal arrangement, since nonmembers can never legally be required to pay fees to unions.B. closed shop agreement.C. union shop agreement.D. agency shop agreement.

Answers

Answer:

The correct answer is letter "D": agency shop agreement.

Explanation:

Agency shop agreement is a union arrangement that allows employers to hire union and non-union workers without affecting the company's organization. In some cases, workers must join the union to keep the job, while in others, they could decide not to join the union but they must pay a fee to cover the expenses of collective bargaining.

Your team consists of 12 members, each in different locations, who are collaborating on a detailed committee report. Your team is in the final phase of the writing process and is making final edits to the report. Because you are each responsible for different aspects of the finalization process, the entire team needs to track changes so that the edits are visible before they are finalized.Which collaboration tools would be best for this situation? Check all that apply.A. Google DocsB. WikiC. E-mail

Answers

Answer: A. Google Docs

Explanation:

Google Docs will be the best solution in this case because it is a cloud computing tool that enables people to work on a document simultaneously across the world. As others are working on the documents, the saves that they make are instantly saved on the document and reflected across all users who have access to the document at the time.

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