The
small investor is the group that are able to day trade and most likely able to invest
across different industries. They also utilize a tax advantages instrument such
as IRA. This also a group that would face less red tape.
Answer:
The Dollar sales break even for the company is $568750, for the north region is $320000 and for the south region is $80000.
Explanation:
1. for the company:
cont margin ration = contribution/sale
= 240000/750000
= 0.32
fixed cost = 182000
dollar sales break even = fixed cost/cont margin ratio
= 182000/0.32
= $568750
2. for the north region:
cont margin ration = contribution/sale
= 120000/600000
= 0.20
fixed cost = 64000
dollar sales break even = fixed cost/cont margin ratio
= 64000/0.20
= $320000
3. for the south region:
cont margin ration = contribution/sale
= 120000/150000
= 0.80
fixed cost = 64000
dollar sales break even = fixed cost/cont margin ratio
= 64000/0.80
= $80000
Therefore, The Dollar sales break even for the company is $568750, for the north region is $320000 and for the south region is $80000.
Answer:
Explanation:
From the information povided:
(a) To compute the amount of goodwill paid by Chicago Corporation
Particulars Amount ($)
Accounts Receivable 100000
Inventory 170000
Plant & Equipment 400000
Land 90000
Customer List 4000
Trade Names <u> 16000</u>
NET ASSETS (A) <u>780000</u>
<u />
Current liabilities 76000
Non-current liabilities <u>160000 </u>
NET LIABILITIES (B) <u> 236000</u>
∴
PURCHASE CONSIDERATION (A -B) 544000
<u>Less:</u> Cash Paid <u> 580000</u>
GODWILL <u> 36000 </u>
<u />
b)
In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.
Account Name Dr. Cr.
Accounts Receivable A/C 100000
Inventory A/C 170000
Plant Equipment A/C 400000
Land A/C 90000
Customer List A/C 4000
Trade Names A/C 16000
Goodwill A/C 36000
Current liabilities A/C 76000
Non-Current Liabilities A/C 160000
Cash A/C 580000
c)
The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.
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Answer:
Since the options were granted at an exercise price of $15 when the market value of the shares was $20, total compensation under the intrinsic method would be $5 per share on 1,000 shares or $5,000. Since the options are exercisable on 1/2/X2, the $5,000 in compensation would all be recognized n 20X1.
Explanation:
Answer:
$3,500
Explanation:
Under variable costing method, product costs are calculated on variable manufacturing costs only.
Step 1 : Determine unit Product Cost
Product Cost = Variable Manufacturing Costs
= $ 35
Step 2 : Determine the units in Inventory
Units in Inventory = Opening Stock + Production - Sales
= 0 + 7,210 - 7,110
= 100 units
Step 3 : Determine Inventory value
Inventory value = Units x Cost per unit
= 100 units x $ 35
= $3,500
Conclusion :
the ending inventory of finished goods under variable costing would be: $3,500