Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale. After one year, the quoted market price of the securities drops the total investment value to $8,000. In the following year, the quoted market price of the securities increases the total investment value to $11,000, and Plasma then sells the equity securities. write down the related entries.
Q: In 2022, Dunder Mifflin Inc. had one temporary difference of $398 that resulted in a deferred tax…
A: Temporary difference means the difference between Accounting Income and taxable income which is…
Q: Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following…
A: The Overhead Budget is defined even as expenditure ready to forecast or show all of the contingent…
Q: Accounting Explain five actions the audit firm would take as part of the client screening process,…
A: An audit is an inspection or inspection of various ledgers by a certified accountant, followed by a…
Q: NOPAT 8250000 EBITDA 17725000 Net Income 5050000 Capital Expenditures 6820000 After tax capital…
A: Net profit before tax: = Net income ÷ (1 -Tax rate)
Q: Ortega Interiors provides design services to residential and commercial clients. The residential…
A: Net income / (loss) is the amount of money earned or incurred after deducting the outlays from the…
Q: Bettlejuice Company manufactures and sells one product for $34 per unit. The company maintains no…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: The Human Resources department at Community Hospital instituted a new performance evaluation system…
A: Variance is actually the deviation which a company calculates when the actual results of the…
Q: Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature…
A: ANSWER Cassie, the number of production runs per year of the miniature oak files that would…
Q: Case study no. 1: A mumber of persons and/or companies decide to se cubscribed capital. Subsequently…
A: Subscribed capital refers to the sum value of shares that the investor intends to buy once they are…
Q: Define in your own words the term diversity.
A: Accounting diversity refers to variances in the recording and use of financial data; American firms…
Q: If a business had sales of $3,894,000 anda margin of safety of 20%, the break-even point in sales…
A: Formula used for calculating Break even point in sales dollars: = Business sales value x ( 100 % -…
Q: Kindly provide answers for ONLY 5.2.1 5.2.2 5.3.3
A: 1. Gross Profit Margin Ratio:- It is the excess of sales over cost of goods sold. It is calculated…
Q: Comment on the following items relative to tax planning strategies of a fiduciary entity. To reduce…
A: The process of examining a financial position or plan to ensure that all components work together to…
Q: You have recently been named the chief accountant for Stop Smog Now (SSN), a not-for-profit…
A: Restricted contribution is that contribution which can only be used for some restricted purposes,…
Q: Question Content Area Complete this production cost report: Enter all amount as positive values. If…
A: Production Cost Report Beginning Inventory 21,000…
Q: Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale.…
A: Available for Sale (AFS) securities are those securities equity or debt securities that are…
Q: Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following…
A: The Overhead Budget is defined even as expenditure ready to forecast or show all of the contingent…
Q: 1. Under Unit of Production Method of Calculating Depreciation, if there is no production in any…
A: Unit of Production Method This method of charging depreciation on the asset is based on the units…
Q: Weighted Average Cost of Capital Rust, Inc. plans to finance its expansion by raising the needed…
A: The weighted average cost of capital indicates the overall cost of capital from all the sources. It…
Q: Adams Company paid $92.000 to purchase a machine on January 1, Year 1. During Year 3, a…
A: An avoidable cost is one that will not be spent if a specific activity is not carried out. Unlike…
Q: Data table Static budget variable overhead 7,800 Static budget fixed overhead %24 3,900 Static…
A: Variance analysis involves computing of the deviations by comparing the actual and estimate data and…
Q: Explain in your own words the key objective of IAS36 – Impairment of assets.
A: An impaired asset is one with a market worth less than the value shown on the balance sheet. When an…
Q: 24. LO.2 (Cost per WA EUP) In October 2010, Rojo Inc.'s production was 53,600 equiva- lent units for…
A: Given that, During October : cost of ; Direct materials = $158,688 Overhead = $85,200 Conversion =…
Q: Company provided the balance sheet below: Cash 225 Accounts payable 150 Accounts receivable…
A: The acid test ratio is calculated as quick assets divided by current liabilities.
Q: E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
Q: ASSIMILATION You and your two friends have put up a small editorial service company. As the only…
A: Trial balance means the statement prepared from ledger account where all debit and credit balance…
Q: The standard direct labor rates in effect for the current fiscal year and the standard hours allowed…
A:
Q: A certain building has a salvage value of P 1 million after 50 years. Annual depreciation is Php 2…
A:
Q: 6. S1. The high-low method is generally less accurate than the least-squares regression method for…
A: The given question is regarding the high low method vs least squares regression method. 1) High low…
Q: True or false ________ 13. The proceeds from the sale of a fixed assets would be credited to sales…
A: Let's understand some basics Fixed assets are assets which are purchased for long-term use and are…
Q: 43 The trial balance for Greenway Corporation appears as follows Greenway Corporation Trial Balance…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. These…
Q: Arthur is deciding to make end-of-year deposits of P1,200 per year. What rate of return would enable…
A: GIVEN Arthur is deciding to make end-of-year deposits of P1,200 per year. What rate of return…
Q: Liberty Celebrations, Inc. manufactures a line of flags. The annual demand for its flag display is…
A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…
Q: REQUIRED Based on the cash book and bank statement of Joe Wilson ltd 1. Prepare an adjusted…
A:
Q: Expected sales 10,000 units at $8 each Variable costs $5 per unit Fixed Costs $21,000 Assume…
A: Unit Contribution margin = Selling price - Unit Variable cost = $8 - $5 = $3
Q: An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000…
A: The total amount of money generated by an individual or firm in a certain period of time, minus…
Q: The debtors ageing analysis for HARUNA limited is as shown below HARUNA LIMITED DEBTORS AGE…
A: "Since you have posted a question with multiple sub-parts, we will solve the first 3-sub parts for…
Q: Use the information below provided by Angel Baby Angel Company Sales 8,250,000.00 Operating costs…
A: Formula: Economic value added (EVA) = Net operating profit after tax - Total invested capital x WACC…
Q: The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated…
A: The break-even formula is calculated by dividing the total fixed costs associated with production by…
Q: .) Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income…
A: The net income of the company can be calculated by deducting all the expenses and costs from revenue…
Q: Determine the following as a result of your audit: 3. How much is the amount of liability for income…
A: Here to discuss about the details of the trade payable and other payable which are related with this…
Q: What is the capital components. breifly define.
A: Introduction: The Weighted Average Cost of Capital (WACC) of a company shows its overall cost of…
Q: Problem 7-22 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes 2…
A: Here discuss about the details of adoption credit and IRS guidelines which are related with the…
Q: Net income for 2020 was P1.825.600.in 2021. it decreased by 53%. Still using the 2020 net income as…
A: Net income means the profit earned by the business after deducting all the expenses related with the…
Q: The firm's average accounts receivable balance is P2.5 million, and they are financed by a bank loan…
A: In the given question, the annual savings in interest cost will be compared with the annual cost of…
Q: Solving hor Stockhalders toquity Amaunts Assume that the foitowing amounts are known for Colten…
A: The dividend is declared and paid to the shareholders from the retained earnings of the business.
Q: Jerilu Markets has a beta of 1.05. The risk-free rate of return is 2.64 percent and the market rate…
A: Introduction:- Risk premium is the excess return over the guaranteed rate of return. It is more…
Q: 28. SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and…
A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…
Q: The balance sheets for a company and additional information are provided below. A COMPANY Balance…
A: Profitability ratio are a class of financial metrics that are used to assess a business's ability to…
Q: The income tax rate is 30%. 1. Basic earnings per share Amaze Company reported the following…
A: The following formulas are used:- EPS=Net Income-Preference DividedendWeighted Average shares…
Step by step
Solved in 2 steps with 2 images
- You have negotiated a $500.000 Convertible Debt loan from an Angel group. It is convertible into stock when you raise your next equity round, and will convert at a price which is a 25% discount to the next round's premoney valuation. It has a Cap ot $7mm on the Conversion Valuation. A year later, you raise your first equity round at a premoney valuation of Samm. What premoney valuation of your company is used to calculate the conversion of the Angels' loan into equity? O 57.5mm Ct365mm O S7mm O $8.5mm O SómmThere are four securities, Security A, B, C, and D. All securities are traded on normal markets.Security D is equivalent to the portfolio of one unit of Security A, one unit of Security B and one unit of Security C: Security D has the same cash flow as Security A, Security B, and Security C combined.Security A is an investment that has cost of $270 today. Then after three years, this security will provide $120 each year for 10 years.Security B is a share of Company X’s stock. Company X’s stock pays no dividend today. After four years, it will pay its first dividend of $5 per share. The dividend will then grow at 5% for 3 years, and then it will grow at 3% in perpetuity.Security C is a newly-issued 15-year coupon bond with face value of $1000 and coupon rate of some percent. Its coupon is paid annually.Suppose Security A, B, and C are all risk-free. The risk-free interest rate is 9% (which is also the discount rate for all these three securities.)Suppose the current price of Security D…Suppose you purchase a T-bills that is 125 days from maturity for $9,765. The T-bills has a face value of $10,000.a. Calculate the T-bills’s quoted discount rate. b. Calculate the T-bills’s annualized rate.c. Who are the major issuers of and investors in money market securities?
- Classify the following investments. Each case is independent of the other. Investment Classifications (a) A bond that will mature in 4 years was bought 1 month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold. select an Investment Classification *Available-for-Sale Debt Securities *Held-to-Maturity Debt Securities *Trading Debt Securities *None of the above (b) 10% of the outstanding stock of Farm-Co was purchased. The company is planning on eventually getting a total of 30% of its outstanding stock. select an Investment Classification *Available-for-Sale Debt Securities *Held-to-Maturity Debt Securities *Trading Debt Securities *None of the above (c) Bonds were purchased in December of this year. The bonds are expected to be sold in January of next year. select an Investment Classification *Available-for-Sale Debt Securities…Consider three securities that pay risk free cash flows over the next three years and that have the current market prices shown here Security Price Today (5) Cash Flow in Two Years (5) Cash Flow in Three Years ($) Name 81 82 83 $9268 $84.79 $386 09 Cash Flow in One Year ($) 100 0 0 0 100 0 0 0 500 Calculate the no-arbitrage price, or the price that eliminates any arbitrage opportuntes, of a new secunty 84, that plays risk toe cash flows of $100 in one year and $500 in two years The current no-arbitrage price of Security B4 is: s(round your answer to two decimal places) K3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)
- A) You invest OMR 900 in a bond which gives 9% interest over a period of 2 years, the compounding is done quarterly. How much will be the value of the investment? Select one: a. 1053.24 b. 1254.74 c. 1075.34 d. 753.24 B) Which of the statements are not correct Select one: a. Profits refers to earnings before Interest and Taxes b. Investment decisions relate to pattern of financing c. Dividend pay out ratio refers to what proportion is paid to shareholders d. Borrowed funds are relatively cheaper than shareholders’ fundsCross Country Railroad Co. is about to issue $100,000 of 10-year bonds that pay a 5.5% annual interest rate, with interest payable semi-annually. The market interest rate is 5%. How much can Cross Country expect to receive for the sale of these bonds? To calculate, use (a) the present value tables, (b) a financial calculator, or (c) Excel function PV. (Unknown Rate) HQ Ltd. purchased a used truck from Trans Auto Sales Inc. HQ paid a $4,000 down payment and signed a note that calls for 36 payments of $1,033.34 at the end of each month. The stated rate of interest in the note is 4%. As an incentive for entering into the contract, Trans has agreed to forgive the first two payments under the lease.InstructionsWhat was the purchase price of the used truck excluding the incentive given? To calculate, use (1) a financial calculator or (2) Excel function PV.What effect, if any, does the forgiveness of the first two payments have on the purchase price of the truck?Calculate the present value of…For the next three questions (1-3) assume what follows: Assume that you acquired a previously issued debt instrument. According to its specifications, it promised to pay $1,000 precisely in two years from the day of its original issue. At the time it was issued, investors anticipated 8.00% in interest on instruments with similar characteristics and risk level. *Note, standard rounding rules apply to all calculations! Q1. What price did you have to pay for this security - under assumption that you acquired it in a secondary market precisely three months after its original issuing, and taking into account that at the time of your acquisition investors anticipated to earn 10.00% in interest on securities with similar features and risk characteristics? A). $857.34 B). $846.37 3000K AS
- An investor is considering the purchase of a(n) 8.375%, 15-year corporate bond that's being priced to yield 10.375%. She thinks that in a year, this bond will be priced in the market to yield 9.375%. Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out. The price of the bond today is $. (Round to the nearest cent.) 4Standard bank has assets of $ 150 million, liabilities of $ 135 million and equity of $ 15 million. It asset duration is six years and the duration of the liabilities is for four years. Standards bank wishes to hedge the balance sheet with 20-year T-bond futures contracts, witch are currently trading at $95 per $100 face value and duration of 10.37 year. Note that T-bond futures are sold in $100000 face value per contract. What is the duration gap of Standard Bank? A.2 years B.3.2 years C.2.4 years D.-2.4 yearscullumber, inc has a bond issue maturing in seven years that is paying a coupon rate of 7.5 percent (semiannual payments). Management wants to retire a portion of the issue by buying the securities in the open market. if it can refinance at 6 percent, how much will cullumber pay to buy back its current outstanding bonds? Assume face value is $1000.
