Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Effect of financing on earnings per share, Advantages and Disadvantages of each plan.
Three different plans for financing a $10,000,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 40% of income.
Plan 1
Plan2
Plan3
10% bonds
____
$5,000,000
Preferred 10% stock, $40 par
2,500,000
Common stock, $10 par
$10,000,000
5,000,000
Total
Instructions
1.Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $2,000,000.
2.Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $950,000.
3.Discuss the advantages and disadvantages of each plan.
From the data given compute the Margin of Safety - Determine the margin of safety in terms of dollars
Complete the flexible budget at the 90,000-unit level of activity. Consider that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 % of operating income.
Find the activity rate for each activity cost pool. Also compute the amount of overhead cost that would be applied to each product.
Evaluates the amount of materials handling overhead cost that should be allocated to the company's two products.
Example on Inventory Valuation
Prepare the essential entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2015, recording any essential amortization.
What is the cash break-even level of output for this project
Probability of Audit - What judicial concept might the IRS invoke to question this transaction
Prepare a Statement of Cash Flows in good form using the above information and the indirect method. Prepare the Net Cash Provided by Operating Activities section, using the above information, using the direct method.
Evaluate Becky's bad debt deduction for 2012? For 2013? What forms are used to record the bad debt on her tax return?
Show what information Captain Peachfuzz may provide to the auditor about Baddenoff possible claim against Natasha. (Assume that the amount involved is material to Natasha.)
Purpose all the journal entries for the above transactions for 1 st July 2010 to 30 June 2011.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd