Reference no: EM131207975
Lou Hoskins and Shirley Crothers are organizing Red Lodge Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Lou and Shirley tentatively plan to request authorization for 400,000,000 shares of common stock to be sold to the general public. Lou and Shirley have decided to establish par of $0.03 oer share in order to appeal to a wide variety of potential investors. Lou and Shirley feel that investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a “bargain” price.
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Predetermined overhead rate on variable manufacturing
: Oldham Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $4.00 per machine-hour and fixed manufacturing overhead cost of $87,822 per period. If the denominator level of activity is 4,100 machine-hours, the f..
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New monitor requires to increase net working capital
: A new electronic process monitor costs $990,000. This cost could be depreciated at 30 percent per year (Class 10). The monitor would actually be worth $100,000 in five years. The new monitor would save $460,000 per year before taxes and operating cos..
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What is the maturity date of the note-amount of the discount
: On July 5, 2013, the Cowens Company accepted a 90-day, 10 percent note from Rhonda Ballard in settlement of her past-due account for $5,000. On Aug. 4, the Cowens Company discounted the note at the Investment Capital Bank. What is the maturity date o..
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Contribution format income statement at target sales levels
: Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 636,000 $ 40 Variable expenses 445,200 28 Contribution margin 190,800 $ 12 Fixed expenses 156,000 Net operating income $ 34,800..
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Quantity of shares for what might appear to be bargain price
: Lou Hoskins and Shirley Crothers are organizing Red Lodge Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Lou and Shirley tentatively plan to request authorization for 400,000,000 shares of common stock to be sold to the..
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Shares of common stock were outstanding
: A company reported net income of 5.6 million. At the beginning of the year, 3.4 million shares of common stock were outstanding and at the end of the year, 3.6 million shares were outstanding. No dividends were declared.
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Determine the earnings per share of common stock
: BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 8% (issued at face amount) .. $7,500,000 Preferred 2% stock, $10 par .......... 7,500,000 Common stock, $50 par .......... 7,500,000. Determine the earnings pe..
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Distributes lightweight lawn chair
: Deckyard Company distributes a lightweight lawn chair that sells for $27 per unit. Variable expenses are $13.50 per unit, and fixed expenses total $65,250 annually. Prepare two contribution format income statements, one showing the results of last ye..
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Calculate the dividends per share on each class of stock
: Sea Horse Inc., a software development firm, has stock outstanding as follows: 80,000 shares of 1% preferred stock of $15 par, and 200,000 shares of $65 par common. During its first four years of operations, the following amounts were distributed as ..
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