Last week: $12,500.This week: $12,500 * 2 = $25,000Next week: ( $12,500 + $25,000 ) : 2 = $37,500 : 2 = $18,750Answer: David plans to spend $18,750 on advertising next week.
Answer:
Explanation:
Book value of shareholders equity = Book value of mailing machine + net working capital - Long term debt = 64500 + 57200 - 111300 = $ 10400
Answer:
Activity Rate for Setup = $18
Explanation:
Given
Activity Total Activity-Base Usage Budgeted Activity Cost
Setups 10,000 $180,000
Inspections 24,000 $120,000
Assembly (dlh) 80,000 $400,000
Activity Rate is calculated by: Budget Activity Cost/Activity Base Usage
Where Activity Base (for Setup) = 10,000
Budget Activity Cost = $180,000
So, Activity Rate for Setup = $180,000/10,000
Activity Rate for Setup = $18
Hence, the calculated activity Rate for setups is $18
Answer:
The amount of goodwill that Parent should report as a result of its acquisition of a Sub is $500,000
Explanation:
The calculate of the goodwill of a company at its acquisition you have to subtract the total fair market value of its assets and liabilities from the price paid.
For this case:
Price of purchase: 500,000 shares at $15 per share that is $7,500,000
Fair market value of its assets and liabilities is $7,000,000 ($6,000,000 + $1,000,000) The value of net assets reported by Sub's + $1,000,000 extra determined by parets as fair value.
$7,500,000 - $7,000,000 = $500,000
<span>Answer:
At what unit sales level would WCC have the same EPS, assuming it undertakes the investment and finances it with debt or with stock? {Hint: V = variable cost per unit = $8,160,000/440,000, and EPS = [(PQ - VQ - F - I)(1 - T)]/N. Set EPSStock = EPSDebt and solve for Q.} Round your answer to the nearest whole.
units
At what unit sales level would EPS = 0 under the three production/financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock financing? (Hint: Note that VOld = $10,200,000/440,000, and use the hints for Part b, setting the EPS equation equal to zero.) Round your answers to the nearest whole.
Old plan units
New plan with debt financing units
New plan with stock financing units
On the basis of the analysis in parts a through c, and given that operating leverage is lower under the new setup, which plan is the riskiest, which has the highest expected EPS, and which would you recommend? Assume here that there is a fairly high probability of sales falling as low as 250,000 units, and determine EPSDebt and EPSStock at that sales level to help assess the riskiness of the two financing plans. Round your answers to two decimal places.
EPSDebt = $
EPSStock = $</span>
