Answer:
Price-Earning ratio = 6.42
Price to Sales Ratio = 1.35
Explanation:
Earning for the year = $285,000
Common stock outstanding = 150,000 shares
* Price has not been given in the question. Assuming $70 is the market price of the share.
1.
Earning per share = Earning for the year / Common stock outstanding
Earning per share = $285,000 / 150,000 = $1.90 per share
Price-Earning ratio = $7 / $1.90 = 6.42
2.
Price to Sales Ratio = Price / Sales = $7 / $5.19 = 1.35
Answer: $6780
Explanation:
Asset recorded in books of timble will be:
= (PVAF at 5%, 8 × Annual CF) + (PVAF at 5%,8 × salvage)
where CF = cash flow
PVAF = present value of annuity factor
= (6.80 × 9000 ) +(0.66 × 10000)
= 61200+ 6600
= $ 67800
Since the equipment has an expected life of ten years with no anticipated salvage value, then the depreciation will be:
Depreciation = 67800 ÷ 10
= $ 6780
Answer:
a. Sometimes candidates unpopular with the party leadership reach the top.
Explanation:
Under the primary system there is voting on the ballots which is secret in nature and under the caucus system people vote after listening to the individual nominees and then accordingly to the candidate they like.
In this manner, the candidates who are not even belonging to some recognized or popular parties are in leadership as their individual speech is too alluring to the people present for voting that they vote for that specific candidate.
Thus, the correct answer is:
Statement a.
Answer:
The amount of interest accrued as of December 31, 2016 is $10,980.
Explanation:
On December 31, two months interest is accrued and this is equivalent to 61 days (30 days for November and 31 days for December).
Calculation of Interest accrued is as follows ;
Interest accrued = $360,000 × 6% × 61/120
= $10,980
Answer: Requitred units =34,285.7 units
Explanation:
GIVEN
Total Per Unit Sales
$ 300,000 $ 10
Variable expenses 180,000 <u> $6 </u>
Contribution margin 120,000 $ 4
Fixed expenses 100,000
Net operating income $ 20,000
New selling price=Old price - prosed price
=$10-$0.5 = $9.5
Revised contribution margin= Selling price-Variable costs
= $9.5-$6=$3.5
Proposed Contribution margin=Net operating income + Fixed expenses.
=(100,000 +20,000)= $120,000
Required units to be sold=Proposed Contribution margin/Contribution margin per unit
= $120,000/$3.5
=34,285.7 units
