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zimovet [89]
1 year ago
13

Tony is the sole shareholder of O.K. Oil Corporation. Tony uses O.K's funds to pay his personal expenses and to create Pure Fuel

Corporation to engage in the same business as O.K. Oil. He then transfers all of O.K. Oil's assets to Pure Fuel. Tony then files/petitions O.K. Oil into bankruptcy. These actions would most likely cause:a. a bonus to Tony for financial maneuvers b. a discharge for O.K. in bankruptcy c. a pierce of the corporate veil. d. a review of Pure Fuel's articles of incorporation
Business
1 answer:
Law Incorporation [45]1 year ago
3 0

Answer: C

A pierce of corporate veil

Explanation:

A business is expected to have a separate body that is distinct from that of its owner or owners. In the above scenario, Tony does not take the business as a separate entity and as such he can be charged for piercing the corporate veil of O.K. Oil Corporation on the following grounds.

Failure to maintain the separate identities of the companies.

Failure to maintain separate identities of the company and its owners or shareholders.

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The following information is taken from French Corporation's financial statements:
defon

Answer and Explanation:

The preparation of the cash flows statement is presented below:

Cash flow from operating activities

Net income                                                                    $78,300

Adjustments in net income

Add: Amortization of patents                     $5,000

Add: Depreciation expense                       $19,000

Less: Increase in prepaid expense           ($700)

($7,500 - $6,800)

Less: Increase in accounts receivable    ($20,600)

($102,000 - $80,000) - ($4,500 - $3,100)

Decrease in Inventory                                $15,000

($160,000 - $175,000)

Increase in accounts payable                     $6,000

($90,000 - $84,000)

Decrease in accrued liabilities                    ($9,000)       $14,700

($54,000 - $63,000)

Cash flow from operating activities                               $93,000

Cash flow from Investing activities

Sales of patents                                            10,000  

($20,000 - $35,000) - $5,000)

Land purchased                                           ($40,000 )

($100,000 - $60,000)

Building purchased                                      ($50,000)

($294,000 - $244,000)

Cash flow from Investing activities                                ($80,000)

Cash flow from Financing activities

Bonds purchased                                         $65,000

($125,000 - $60,000)

Common stock    

Additional paid in capital

Dividend paid                                                 ($35,000)

Treasury stock                                                ($7,000)

($15,000 - $8,000)

Net Cash flow from Financing activities                       $23,000

Net Cash flow                                                                    $36,000

($93,000 - $80,000 + $23,000)

Add Beginning cash and cash equivalent                        $27,000

Ending cash and cash equivalent                                   $63,000

($36,000 + $27,000)

Therefore, we represent the negative value is cash outflow while the positive value is cash inflow.

5 0
2 years ago
Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operati
Maksim231197 [3]

Answer:

Highland construction company

Income statement

For the year ended December 31, 2014

Sales revenue=128,400

Total expense=80,200

Pretax income=48,200

Tax                  =14,460

Net income     =33,740

Highland construction company

Statement of stockholder's equity

For the year ended December 31,2014

Balance December 31,2013=0

Stock issuance                    =87,000

Add:Net income

Less:Dividends

Balance December 31,2014=87,000

Highland construction company

Balance sheet

December 31,2014

Account payable=46,140

Salaries payable=2,520

Total liabilities

Common stock=87,000

Retained earnings=23,740

As complete information is not given so only relevant portion is done.

4 0
2 years ago
Suppose that the Dallas School District wants to achieve Six Sigma quality levels of performance in delivering students to schoo
Kay [80]

Answer:

a) 1.66 minutes

b) 3.4 out of million deliveries

Explanation:

So, it is a six sigma quality question, we first need to understand little bit about six sigma and how it is to achieve six sigma level.

<u>Six Sigma:</u>

It is the process or technique used by many organizations through out the world to achieve maximum quality in a product or in a service they are providing. It helps to indicate root causes of the process or you can say waste steps which first need to be identified then rectified to bring that top-notch quality in the system. So in this case, in order to calculate part a) we will calculate six sigma control limits.

a) So, for six sigma control limits, the maximum allowable standard deviation is 12 or you can say +6 + (-6) = ±6 = 12. It means all deviations must lie in all 12 standard deviations.

<em>Please refer to the table shown in the attachment.</em> This bell curve represent six sigma concept. In this <em>3 sigma quality level means all deviations must lie in 6 standard deviations.</em>

So, here we have been given that mean = 20, so with mean we can calculate standard deviation in six sigma control limits.

Maximum Allowable Standard Deviation for 6 sigma = Mean/12

                                                                                        = 20/12

                                                                                       = 1.66

So, 1.66 is the maximum allowable standard deviation of arrival times required in order to achieve 6 sigma quality level.

b) In this part, we are asked that, out of million deliveries about how many times bus deliver students too early or too late at this 6 sigma quality level.

<em>For this answer, please refer to attachment again</em>. and notice at the left bottom with the arrow of 6 sigma, we have a number 3.4 ppm means 3.4 part per million.

<em>So, it 3.4 times in a million deliveries bus will deliver students either too early or too late. </em>

8 0
2 years ago
Which one of the following generic types of competitive strategy is typically the "best" strategy for a company to employ?
Klio2033 [76]

Answer: One that is customized to fit the macro-environment, industry and competitive conditions, and the company's own resources and competitive capabilities

Explanation:

The generic types of competitive strategy is typically the "best" strategy for a company to employ is one that is customized to fit the macro-environment, industry and competitive conditions, and the company's own resources and competitive capabilities.

This is because the company has to consider it's resources, the market and other necessary factors before making a decision on that.

8 0
2 years ago
Walmart relies on a cost leadership strategy and tries to keep all of its expenses as low as possible. The company relies heavil
gulaghasi [49]

The correct answer is; Cost leadership strategy

Further Explanation:

Cost leadership strategy is used by numerous top companies in the world. They use this strategy so it can increase their profits at the same time as reducing their costs. The prices won't stay the same so they can keep up with the competition. Since the costs are down for each item they can lower the price and still have a good profit.

Walmart relies on this business model and its one of the reasons they are the most profitable big business in the world.

Learn more about cost leadership strategy at brainly.com/question/14395542

#LearnwithBrainly

8 0
1 year ago
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