Q: In 2021, a company issued 6% bonds with a maturity value of P40,000, together with 1,000 shares of…
A: Solution: When bonds and shares are issued together and fair value of one securities is known and…
Q: Find a company that committed a change of accounting principle/estimation or error
A:
Q: On December 31, 2021, the Bobo company presented the following information: Ordinary share capital,…
A: Cost Value of Property, plant and equipment: P8,000,000 Book Value of Property, plant and equipment:…
Q: E The following data are taken from the books of Tides Corporation: Gross profit from business…
A: The question is related Taxable Business Income. Taxable Business income is the excess of Gross…
Q: The Gypsy Corporation has the following portfolio of investment securities (designated at fair value…
A: Unrealized Gains It is a theoretical benefit which exists on paper, coming about as a result of an…
Q: Halcrow Yolles purchased equipment for new highway construction in Manitoba, Canada, costing…
A: Depreciation is the non-cash expense which is reported in the books in order to record the regular…
Q: On January 1 of the current year, Barton Corporation issued 9%, 5-year bonds with a face value of…
A: When Bonds are issued at discount such discount will be written off over the life of the period.…
Q: Marigold Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the…
A: Pension Expenses: It is the sum that a business charges to expense according to its liabilities…
Q: On December 31, 2020, the statement of fi ollowing data with profit or loss sharing ra Cash…
A: Profit and loss Profit or loss of the company is measured by preparing income statement which shows…
Q: Ogag company issued 1,000 shares of its P5 par value ordinary shares as payment for 1,000 hours of…
A: Par. value of Ordinary Shares :- P5 No. Of Equity Shares issued :- 1000 shares Market Value of…
Q: Nicanor, single, received the following in 2022: Proceeds of his life insurance paid at annual…
A: Proceeds of his life insurance paid at an annual premium of P15,000 within 25 years - P2,000,000…
Q: Donahue Oil has an account titled Oil and Gas Properties. Donahue paid $6,700,000 for oil reserves…
A: Journal entry is the primary step to record the transaction in the books of account. The debit and…
Q: Determine the capitalized cost of a large-format printer that has a first cost of P1.20 million and…
A: Capitalized cost is defined as an expense that is capitalized, i.e. added to the asset's value, and…
Q: Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking equipment,…
A: The earnings per share on common stock is calculated as net income available to common stockholders…
Q: 21. In 2021, Dan Davis, age 85 and single, received Social Security benefits of $14,000, dividend…
A: The social security tax is the tax that is collected by the government for the benefits given to the…
Q: Prepare adjusting entry for October 31. Show computation. A bank loan amounting to P100,000 was…
A: Formula: Interest amount = Bank loan amount x Interest rate x Time period.
Q: QUESTION 23 During the year of 2021, Bradford Corporation, an S Corporation has a recognized…
A: The answer for the multiple choice question and relevant working are presented hereunder : What is…
Q: Problem 4: American Corporation Truck Production Company has purchased a truck for $85,000. The…
A: Depreciation Expenses There are different method which are used to calculate the depreciation cost…
Q: What is the proper treatment for noncash asset received from a non-stockholder? Group of answer…
A: Accounting entry to be made for noncash asset received from a non-stockholder: Debit Noncash Assets…
Q: The amount to be refunded to Mr. Gerry is:
A: Tax refund is paid to the taxpayer when there has been paid by the taxpayer during the year more…
Q: Gina Electronics Inc. has long-term bonds with a face value of $2M, the coupon rate on the bonds is…
A: Weighted average cost of capital is total cost of raising funds for the business and it includes…
Q: USE THE NUMBERS 1-10 TO PLACE THE FOLLOWING STEPS OF THE ACCOUNTING CYCLE IN THEIR PROPER ORDER, 1…
A: Accounting cycle includes the step by step procedure of recording and finalizing the business…
Q: n 2021, wow company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: On April 1, 2028, A Company issued a P 9.000,000 non-interest-bearing note due March 31, 2031, for a…
A: Interest expense = P469,112
Q: Bonita Company has total liabilities of $10800 and total assets of $14400. Based on this…
A: Basic accounting equation is Total assets = Total liabilities + owners equity
Q: Selected current year-end financial statements of GENESIS Corporation follow. All sales were on…
A: (Note: Since you have posted a multi-part question, we will solve the first 3 sub-parts. For the…
Q: On October 1, 2021, a company declared to its shareholders a property dividend in the form of pieces…
A: Solution: In case of property dividend, fair value on the date of declaration is considered for all…
Q: What does 2/10 mean in accounting?
A: Accounting is the method of recording financial transactions in a business. Accounting is the…
Q: Service volume for the coming budget year will be 10,000 units per week of service type 1 and 20,000…
A: Lets understand the basics. Gross revenue is revenue earned with out considering any bad debt. On…
Q: Zabra Co. makes and sells a single product. For ench one unit of produict, 2 nicters of Material are…
A: In the given question first we will calculate the Production in uniys with the help of Sales Budget…
Q: The following data are provided by Coach Sarah Company: Assets at book value P750,000 Assets at…
A: Introduction:- According to accounting Deficiency denotes negative or loss of money. Estimated…
Q: Zahra Co. makes and sells a single product. For ench one unit of product, 2 meters of Material are…
A: Lets understand the basics. Management prepares the master budget and other budget based on the…
Q: Which is TRUE? S1: All taxpayers engaged in trade are allowed to use either itemized or optional…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: On December 31, 2021, the company presented the following information: Ordinary share capital, P50…
A: Quasi re-organization is a process of removing the retained deficit of a company by revaluing its…
Q: Why is it necessary to evaluate the attributes of audit evidence? Explain
A: The information gathered by an auditor to determine the correctness and conformity of a…
Q: 1. How many shares of treasury stock are owned? fill in the blank 1 shares 2. What was the…
A: Since you have posted a multi-part question, we will solve the first first 3 sub-parts for you. For…
Q: Research about the meaning of the culture of an organization. Explain how it is related to building…
A: Meaning of culture in an organization : Culture is a value and belief that are followed by the…
Q: .IFRIC 17 Distribution of noncash assets to owner provides that at the end of each reporting period…
A: Dividend payable is the amount of the return which is to paid to the shareholders of the entity.
Q: Perfect Stampers makes and sells aftermarket hubcaps. The variable cost for each hubcap is $4.75,…
A: Contribution margin per unit = Selling price per unit - Variable Cost per unit
Q: Which is FALSE? S1 – All income is taxable. S2 – All exclusions from gross income are exempted.…
A: S1 – All income is taxable.: this statement is incorrect as all income excluding the exempted income…
Q: 9. Which of the following items would be excluded from current liabilities? Group of answer choices…
A: According to IFRS, a liability is classified as ‘current’ if it meets any of the following…
Q: During 2020, Strawberry Corporation purchased several equity securities, all of which are designated…
A: Here discuss about the purchase and sale of share investment which are made through the fair value…
Q: Five year property costing $25,000 was placed in service on January 11, 2021 and $75,000 of five…
A: Introduction: Depreciation is the process of dispersing the cost of a physical item over its useful…
Q: .T.Challa set up his firm on 1 Jan 2018. The total amount of Trade Receivables in the books was…
A: Doubtful debts are those accounts receivables from which it is doubtful that whether due amount will…
Q: A company reported the following information on December 31, 2021: Preference share, P100 par…
A: Total shareholders' equity is the amount of funds of the shareholders outstanding in the statement…
Q: School fees at a certain school are due at the beginning of the year. The fees are set at R12000 for…
A:
Q: What is the answer for these? and how do we find them k. Return on common stockholders' equity % %…
A: Return on common stockholders' equity is the measure of profitability of the business available to…
Q: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share…
A: The investment is valued under the fair value method if the investment is in less than or equal to…
Q: Provide three examples of pricing decisions other than the special order. Question content…
A: Pricing decisions are the choices business makes when deciding the price for the product or the…
Q: On October 1, 2021, a company declared to its shareholders a property dividend in the form of pieces…
A: The profit and loss statement is a financial term that summaries the sales ,cost expenses incurred…
Step by step
Solved in 2 steps
- Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution of EBIT for the coming year: Fem A Unlevered Probability EBIT Interest EBT Taxes (40%) Net Income BEP ROA ROE O2.653% O 3.487% 2.800% O 3.098% Bad 3.774% 10.00% $500.00 $0.00 $500.00 -$200.00 $300.00 10.00% 6.00% 6.00% Economy Average 40.00% $700.00 $0.00 $700.00 -$280.00 $420.00 14.00% 8.40% 8.40% Now assume that the firm plans to issue $2,000 of debt, at an interest rate of 6.4 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the firm will then have $3.000 of equity). Given this information, determine the standard deviation of the new ROE distribution. Good 50.00% $900.00 $0.00 $900.00 -$360.00 $540.00 18.00% 10.80% 10.80%Assume that a company has 52,000 equity and borrows $1000 at 10% terest, All of fens funds are investnd in the same aset which ye 20 INOA, Calculte the company's ROK. O SM O 15% O 20% O 25%Proforma balance sheet for the upcoming year is given. The estimated net income is $2,621.60. If the company is planning pay $500 dividends, what should be the external financing needs (EFN)? Assets $20,972.80 Debt Equity $20,972.80 Total Total Proforma Balance Sheet Multiple Choice O O -$208.8. $208.8. $500. $291.2. -$500. $11,000.00 $10,181.60 $21,181.60
- M,Band/Aweretthree partnerssharing profits i int the ratio 2::2::11Their|Balance Sheetas at 31.3.2012 was as under: BALANCE SHEET as at 31.3.2012 Liabilities $ Assets $ General ReservE M's Capital B's Capital FAs Capital Creditors 28,000 30,000 20,000 10,000 25,000 17,500 4,C00 TZ1500 28,500 45,500 15,000 30,000 Casih Debtors Stock Land & Building Motor Vehicle Bilis Payable Goodwill 1,30,500 1,30,500 Bdied on 12th June, 2012. According to the deed, his legal representatives entitied ito: (fa) Batanceiin Capital A/c ((b) Shareof goodwill valued on the basis of thrice the averoge profits far ithe pastifourcompieted years. ((0) Shareinprofits upto the dote of death on the basis of average profits forthe pastifour completet yeurs. ((d) ifntereston capital@ 18% p.a. Profits forithe yearsending on/March 31“ of 2009, 2010, 2011 and2012 respectively.were $50,000, $E8,00, $40,000, $52,0ODirespectively. Theifirmihaitaken amatonvéhičteibutítwas mot recordetdi inthelhooksitillttate. The market…(a) Calculate current Ratio and Quick Ratio from the followinginformation:Total Assets Rs. 350000Fixed Assets Rs. 175000Investment Rs. 70000Fictitious Assets Rs. 5000Share holders fund Rs. 200000Long term Debts Rs. 100000Inventory Rs. 45000(b) From the following information calculate the stock turnoverratio.Sales Rs. 200000, G.P 25% on cost, Opening Stock was 1/3rd of thevalue of closing stock. Closing stock was 30% of salesThe company capital structure consists of debt 250000 at 0.084, preferred stock 230000 at 11% and common stock 120,000 at 14%, calculate a company's weighted average cost of capital Select one: O a. 0.1051 O b. 0.0629 OC 0.0771 d. 0.0349 e. All the given choices are not correct
- The management of Kosoko traders wants to establish theamount of financial needs for the next two years.Thebalance sheet of the firm as at 31stDecember 2016 is asfollows:Shs.‘000’Net fixed assets 124,800Stock 38,400Debtors 28,800Cash 7,200TotalAssets 199,200Financedby:Ordinary share capital 84,000Retained earnings 35,20012%long-term debt 20,000Trade creditors 36,000Accrued expenses 24,000TOTAL 199,200For the year ended 31st December,2016sales amounted to sh.240,000,000.The firm projects that the sales will increase by15%in 2017and 20% in 2018.After tax profit on sales has been 11% but the management ispessimistic about future operating costs and use anafter-tax profit on sales rate of 8%per annum by 2018.The firmintends to maintain it's dividend pay out ratio 80%.Assets areexpected to vary with sales,while trade creditors and accruedexpenses form the spontaneous sources of financing.Any external financing will be effected through the use of commercial paper.calculate amount of external…Q39. Balance Sheet had the following amounts as at 31st March, 2019: $ Current Assets 10% Preference Share Capital Equity Share Capital 5,00,000 15,00,000 Current Liabilities Securities Premium Reserve Reserve and Surplus 1,00,000 Investments (in other companies) 4,00,000 Fixed Assets -Cots 30,00,000 Depreciation Written off Long-term from IDBI @ 9% Calculate ratios indicating the long-term and the Short-term financial position of the company. $ 12,00,000 8,00,000 2,00,000 60,00,000 14,00,000The company capital structure consists of debt 150000 at 4.05%, preferred stock is 20% from debt amount at 13.30% and common stock 60000 at 19.50%, calculate company's weighted average cost of capital Select one: O a. 10.50% b. None O c. 11% d. 5.99% O e. 8.99%
- Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)Assume you are given the following information for firms A and B: A В $1,563,400.00 $2,357,316.00 $2,051,347.00 $1,257,431.00 Price $31.25 $31.25 i 13.52% 13.52% EBIT $97,347.00 $97,347.00 No taxes How do you replicate an investment in 79% of stock B by using stock A? What is the return of the replicating strategy?Assume Meyer Corporation is 100 percent equity financed. Calculate the return on equity, given the following information: Earnings before taxes 1,500 Sales 5,000 Dividend payout ratio 60% Total assets turnover 2 Tax rate 30% (Ctrl) - e to search insert IDI @ %23 $ 6 7 3 4 4 5 6 P W E R S D G H M -