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Accounting

Determining Price per Share and Profit: Example Problem

a. You overheard a dealer for Teldar Paper's stock saying that the bid and ask for Teldar were 23:19 AND 23:47, respectively. if you were looking to sell 100 shares of Teldar to the dealer, at what price per share could you sell them? b. If your friend Jimmy wants to buy 100 shares of Teldar from the dealer, at what price pe

Michigan Mining and Manufacturing has a debt obligation

Michigan Mining and Manufacturing has a debt obligation of $100 million and assets with a value of $90 million. This debt must be paid off very shortly. When this happens, the value of the debt will be $90 million and the value of equity will be $0. Prior to paying off the debt, MMM has an opportunity to make a high-risk investm

Accounting for intangible assets

Mia-Tora Company purchased a fast-food resturant for $1,400,000. the fair market values of the assets purchased were as follows. No liabilities were assumed. Equipment $320,000 Land $200,000 Building $ 650,000 Franchise (5-year life) $100,000 Required: Calculate the amount of goodwill purchased.

Change in Accounting Principles and Financial Statements

BE13- 1 On June 30 Rojas Corporation discontinued its operations in Mexico. On September 1 Rojas disposed of the Mexico facility at a pretax loss of $ 480,000. The applicable tax rate is 25%. Show the discontinued operations section of Rojas's income statement. BE13- 3 On January 1, 2007, Cannon Inc. changed from the LIFO met

Price per Share of a No Growth Firm

Company X is a no growth firm. It is expected to provide a constant earnings per share of $30. If all earnings are paid out as dividends and the required rate of return on equity is 15%, calculate the current price per share for the stock. a) $45 b) $100 c) $150 d) $200 e) Not enough information to answer the question f)

PVGO: Compute the capitalized value of EPS in a no-growth policy

Presume the per share PVGO of a firm's common stock is computed as $44, and the firm's current market price is $56. This implies that the capitalized value of the earnings per share the firm is expected to generate under a no-growth policy is: a) $12 b) $44 c) $50 d) $56 e) $100

Journal Entries Necessary for Accounts

See the attached file. 1. On July 23, Plitt Company factored $300,000 in accounts receivable for cash of $280,000. The factor withheld 7 percent of the cash proceeds to allow for possible customer returns. An allowance for doubtful accounts of $13,000 had previously been established by Plitt in relation to these accounts.

Business Entities in NY

Describe a business entity regulations in the NY state. talk about: a. Identify the business formation code(s) in NY state. b. Identify the address of your state's corporation commission. c. Describe the process for obtaining an "annual filing report" that has already been filed for a corporation currently registered

Retained earnings reports

The following information is based on 2006 account balances: Total reported income since incorporation $1,500,000 Total cash dividends paid ($800,000) Cumulative effect of changes in accounting principle ($120,000) Total stock dividends distributed ($200,000) Correction of an error, recorded Jan 1 2006 $66,000 What sho

Calculate variable overhead efficiency and spending variance: apply overhead

Company B's production budget for the year ended December 31, 2005 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $90,000 for the year, and the fixed overhead rate was estimated to be $6.00 per unit. Both fixed and variable overhead are assigned to the pro

Explain why accounting has a broader role including managerial accounting tasks

Congratulations! You have been hired by Claire's Antiques as its new accountant. Since Claire's Antiques is a small company, you will responsible for all of its accounting functions related to financial and managerial accounting. You are explaining your new role to your friend. After explaining what you do, she expressed sur

Overstated & Understated Account

Ending inventory 2005 = 5,000 overstated insurance expense 2005 = 2,400 understated Assuming that the errors were no corrected, by what amount will 2005 income before taxes be overstated or understated? Please explain.

Alcoa's/ford

Using Alcoa's & Ford's most current 10-K or the company's annual report analize both companies. Post comments about the comparison between the two companies. Compare the income statement elements and comment if the ratios are comparable or not and which company may be doing better and why. I am having such a hard time even f

Consolidated retained earnings

I am having trouble with the following three questions: 1. What is "consolidated retained earnings"? 2. Distinguish between "transfer at cost" and "transfers at a profit or loss" in intercompany transactions? 3. What is the eliminating entry when one subsidiary sells merchandise to another subsidiary?

Rental Cost per Unit and Variability

See the attached file. V- Each of the following events describes acquiring an asset that requires a year-end adjusting entry. 1- Paid $7,000 cash on January 1 to purchase printers to be used for administrative purposes. The useful life is estimated of three years and a $1,000 salvage value. 2- Paid $7,000 cash on January 1

MACRS for new assets; discounted future value (PV)

A. Calculate the annual MACRS depreciation for a machine in the 7-year MACRS asset class, assuming that the asset costs $20,000. B. If you knew that the asset had an expected salvage value of $2,000 at the end of its 12-year economic life, would your answer to part a change? Calculate the annual MACRS depreciation schedu

Construction Accounting - Brown Construction

10) On August 1, 2005, Sarah Brown invested $90,000 in her new business, Brown Construction. During August, she withdrew $10,000 from the business. The amounts of the various assets, liabilities, revenues and expenses are as follows: Accounts payable, $9,000, Accounts Receivable, $26,000, Cash, $5,400, Construction revenue,

Intermediate Accounting III - construction accounting

Dot Point, Inc. is a retailer of washers and dryers and offers a three-year service contract on each appliance sold. Although Dot Point sells the appliances on an installment basis, all service contracts are cash sales at the time of purchase by the buyer. Collections received for service contracts should be recorded as A

Belleville Fashions mix of salary and commission: discuss effects of change.

8-74. The mix of salary and commission. Belleville Fashions sells high-quality women's, men's, and children's clothing. The store employs a sales staff of 11 full-time employees and 12 part-time employees. Until recently, all sales staff were paid a flat salary and participated in a profit-sharing plan that provided benefits