BUSINESS COLLEGE

Crawl Inc., has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2017, and December 31, 2018. The board of directors declared and paid a $2,000 dividend in 2017. In 2018, $10,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2018

Answers

Answer 1
Answer:

Answer:

total dividends distributed to common stock $6,000

dividends per common stock $0.12

Explanation:

preferred stock dividends = 1,000 x 6% x $50 = $3,000

since they are cumulative, if the dividends are not paid during one year, they must be paid in the next periods

the distribution of the $10,000 in dividends in 2018:

  • preferred dividends = $1,000 + $3,000 = $4,000
  • common stock dividends = $6,000

dividends per common stock = $6,000 / 50,000 = $0.12

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Sarah and Jane formed a partnership with capital contributions of $210,000 and $123,000, respectively. Peter contributed $86,000 to acquire an ownership interest of 12% in the new partnership. How much is the total bonus for the existing partners?

Answers

Answer:

$35,720

Explanation:

The computation of the total bonus for the existing partners is shown below;

Total capital is

= $210,000 + $123,000 +$86,000

= $419,000

Now

Share of new partner

= $419,000 × 12%

= $50,280

But the actual amount that needs to pay is $86,000

So, the bonus would be

= $86,000 - $50,280

= $35,720

Hence, the  total bonus for the existing partners is $35,720

SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,487 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is $1.55 (paid only when the cotton arrives at SYM's facilities) and transportation cost by sea is $0.70 per pound. The traveling time from LGT’s facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $186 and the annual interest rate that SYM is facing is 32 percent of total cost per pound. a. What is the optimal order quantity of cotton? (Round your answer to the nearest whole number.)
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?

Answers

Answer:

Kindly check explanation

Explanation:

Given the following :

Price per pound = $1.55

Raw material required = 0.75 pound

Transport cost by sea = $0.70

Monthly demand for each of the three colors = 3487

EOQ = √2DS / H

D = 3 * 12 * 3487 * 0. 75 = 94149

Total cost of purchase = 1.55 + 0.70 = 2.25

Setup cost (S) = $186

Holding cost = 32% * 2.25 = 0.72

EOQ = √(2*94149*186) / 0.72

= 6974.50

b. How frequently should the company order cotton?

Annual demand / EOQ

94149 / 6974.50

= 13.50 ;

12 months / 13.50 = 0.89 month

c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?

Since lead time is 2 weeks, order should be made 2 weeks before : 17th June

d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)

Annual demand / EOQ

94149 / 6974.50

= 13.50 times

e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)

Holding cost * EOQ /2

0.75 * (6974.50/2) = 2615.44

f. What is the resulting annual ordering cost?

Annual ordering cost $

Ordering cost * number of orders

$186 * 13.50 = $2,511

A company estimates the following manufacturing costs for the next period: direct labor, $536,000; direct materials, $211,000; and factory overhead, $119,000. Required:
1. Compute its predetermined overhead rate as a percent of direct labor.
2. Compute its overhead cost as a percent of direct materials.

Answers

Answer:

(1) 22%

(2) 56%

Explanation:

Given that,

Direct labor = $536,000;

Direct materials = $211,000;

Factory overhead = $119,000

(1) Predetermined overhead rate as a percent of direct labor is simply calculated by dividing the factory overhead by its direct labor cost.

Predetermined overhead rate as a percent of direct labor:

= (Factory overhead ÷ Direct labor) × 100

= ($119,000 ÷ $536,000) × 100

= 0.22 × 100

= 22%

(2) Predetermined overhead rate as a percent of direct materials is simply calculated by dividing the factory overhead by its direct material cost.

Predetermined overhead rate as a percent of direct material:

= (Factory overhead ÷ Direct material) × 100

= ($119,000 ÷ $211,000) × 100

= 0.56 × 100

= 56%

Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $400. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts: December 4 Freight charge for merchandise purchased $ 62 December 7 Delivery charge for shipping to customer $ 46 December 12 Purchase of office supplies $ 30 December 18 Donation to charitable organization $ 51 If, in addition to these receipts, the petty cash fund contains $201 of cash, the journal entry to reimburse the fund on December 31 will include:

Answers

Answer:

A credit to Cash of $299

Explanation:

Journal Entry                     Debit    Credit

Merchandise inventory      $62

Delivery charges                 $46

Office supplies                    $30

Miscellaneous expenses    $51

Cash over and short            $100

Cash                                                   $299

Cash to be reimbursed = Minimum cash balance required - Cash balance left

Cash to be reimbursed = $500 - $201

Cash to be reimbursed = $299

When working on opportunities, sales representatives at Universal Containers need to understand how their peers have successfully managed other opportunities with comparable products, competing against the same competitors.A. Big deal alerts
B. Chatter groups
C. Similar opportunities
D. Opportunity update reminders

Answers

Answer: (B) Chatter group and (C) Similar opportunities  

Explanation:

  The chatter group and the various types of similar opportunities are features which is used by the system administrators for the purpose of facilitating the given working opportunities.

 The chatter group is one of the type of collaboration tool in which the various types users can easily interact and also communicating socially.

 According to the given question, the universal containers effectively understand that the peers are managing various types of opportunities by using the comparable products and the services with the competitors in the market.

 Therefore, Option (B) and (C) are correct answer.            

What would the net value of a long straddle position be if the stock price at expiration is $35?

Answers

Answer:

$1.15

Explanation:

Calculation for the net value of a long straddle position

Using this formula

Net value of a long Straddle=(Stock price at expiration-Strike price)-Put option selling-Call option selling

Let plug in the formula

Net value of a long Straddle = ($35-$29)-$2.90-$1.95

Net value of a long Straddle=$6-$2.90-$1.95

Net value of a long Straddle=$1.15

Therefore the net value of a long straddle position will be the amount of $1.15
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