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Recapitalization Plan for All-Star Production Corporation

The All-Star Production Corporation (APC) is considering recapitalization plan that would convert APC from its current all-equity capital structure to one including some financial leverage. APC now has 10,000,000 shares of common stock outstanding, which are selling for $40.00 each and you expect the firms EBIT to be $50,000,000

Davis, Incorporated: Variable Interest Entities and Stock Transactions

Davis, Incorporated, acquired 16,000 shares of Maxwell company several years ago. At the present time, Maxwell is reporting $800,000 as total stockholders' equity, which is broken down as follows: Common Stock ($10 par value) ..............$200,000 Additional paid-in capital..................230,000 Retained earnings......

Calculations for AFN

See attached file for detailed problem and requirements. XYW Company has the following December 31st balance sheet: ($000) Cash $ 41 A/P $ 335 A/R 160 Accruals 150 Inventory 450 Long-term Debt 246 Net Fixed Assets 650 Common Equity 570 Total liabilities

Fast Food Companies: Profit In Low Income Areas

How do fast food companies turn a profit in low income areas? Can you think of any legal issues that might be of conern to a company looking to cut corners in low income areas to help their profit margin?

Computing Basic EPS

1. Dublin Inc. had the following common stock record during the current calendar year: Outstanding - beginning of year 2,000,000 Additional shares issued 6/30 100,000 Additional shares issued 9/30 100,000 A 10% stock dividend was paid on December 1. What is the number of shares to be us

Break Even Point in Dollars

Dr. Aleda Roth, a prolific author, is considering starting her own publishing company. She will call it DSI Publishing, Inc. DSI estimated costs are: Fixed $250,000.00 Variable cost per book $20.00 Selling price per book

L.L. Sams Company & Melinda Garcia Career have sought business loans from you.

Details: The proprietors of two businesses, L.L. Sams Company and Melinda Garcia Career Services, have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets. I attached balance sheet. Solely on the basis of these balance sheets, to which entity would you be more comfortab

Effective evaluation systems for managers: residual income, performance reports

Discussion Question 1 The executive management team of your company has completed its annual evaluations of each division's performance using residual income measures. The division managers were ranked according to the residual income in each division. All division managers with residual income in the upper half of the ranki

Payroll Taxes: Employees and Employers

What are the payroll taxes paid by employees? What are the payroll taxes paid by the employer? What types of reports are used to document to the government the payroll taxes paid by the employee and employer? When is the unearned revenue recognized in the financial statements?

Three business situations: How to detect, prevent and deal with employee fraud

1. Yvette, a CEO of a large manufacturing company, recently attended a seminar about fraud prevention. She suspects that frauds have already been committed in her company. She decided one technique she would use to help uncover the fraud and prevent future frauds in her company, is to conduct interviews of employees. She realize

Tax Breaks

Can you help me get started with this assignment? Is there really that much of a difference between offering tax breaks and other countries offering low wages? Both locales are offering what they have available, tax control vs. wage control. Both would benefit greatly from the added income, but the foreign country would resul

Break-Even EBIT: Rolston Corporation. All equity plan and levered plan

Rolston Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Rolston would have 150,000 shares of stock outstanding. Under Plan II, there would be 60,000 shares of stock outstanding and $1.5 million in debt outstanding. The interest rate on the deb

Natural monopoly examples

Can you help me get started with this assignment? What is natural monopoly? Can you give some examples for natural monopoly? Economists usually favor private ownership to public ownership of natural monopolies, why is it?

Payroll Accounting

Can you help me understand this question? Employee earnings records for Brantley Company reveal the following gross earnings for four employees through the pay period of December 15. C. Mays $83,500 D. Delgado $86,100 L. Jeter $85,600 T. Rolen $87,000 For the pay period ending December 31, each employee's gross earnin

What is the relationship between average and marginal productivity?

Can you help me get started with this assignment? What is the relationship between average and marginal productivity? "Where marginal product exceeds average productivity, average productivity rises. And where marginal productivity is less than average productivity, average productivity declines when the variable input in

MA_U10_39-43: factory overhead, volume variance, standard costs, profit center

MA_U10_39-43: please see attachment for problems. 39. The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 u

calculating Taxable income

During 2007 Richard and Debbie, who are married and have two dependent children, have the following income and losses: Total salaries $130,000 Bank account interest 25,000 Short-term capital gains 4,000 Short-term capital losses (1,500) They also in

Accounting Refresher Worksheet

Please see attached. Given the characteristics of useful accounting information, complete each of the following statements. 1. For information to be _____, it should have predictive or feedback value, and it must be presented on a timely basis. 2. _____ is the quality of information that gives assurance that it is free of e