cumulative preferred stock mean

Suppose that you are a portfolio manager for an actively managed portfolio. Your mandate is to beat a benchmark index by holding a portfolio of some subset of stocks in the index. You cannot short sell stocks or trade derivatives. You develop a quantitative model to calculate a “price target” for every stock in the benchmark index. Explain how you could use these price targets to manage your portfolio.

Which of the following approaches is NOT an avenue for changing the position of Arm & Hammer Baking Soda in the minds of consumers in order to extend the product life cycle and increase sales?

Increasing trade promotions

Adding new distribution outlets for the product

Enlarging the target market

Identifying jobs other than baking

Identifying new usage situations

Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

Variable costs per unit:

Manufacturing:

Direct materials $ 29

Direct labor $ 11

Variable manufacturing overhead $ 3

Variable selling and administrative $ 2

Fixed costs per year:

Fixed manufacturing overhead $ 400,000

Fixed selling and administrative expenses $ 90,000

During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $82 per unit.

Required:

1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2.

b. Prepare an income statement for Year 1 and Year 2.

2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2.

b. Prepare an income statement for Year 1 and Year 2.

3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.

INDIRECT METHOD - STATEMENT CASH FLOW

Using information below, Create a Statement of Cashflow (INDIRECT METHOD)

**Note: create the statement for the year of 2018 only.

Net Income from Income statement: $105,000.00

the Retained Earnings was $80,000.00

Small Appliances Division Cleaning Products Division

Sales $34,670,000 $31,320,000

Operating income 2,773,600 1,252,800

Operating assets, January 1 6,394,000 5,600,000

Operating assets, December 31 7,474,000 6,000,000

Forchen, Inc., requires an 8 percent minimum rate of return.

For the Small Appliances Division, calculate:

a. Average operating assets

b. Margin

c. Turnover

d. Return on investment (ROI)

2. For the Cleaning Products Division, calculate:

a. Average operating assets

b. Margin

c. Turnover

d. Return on investment (ROI)

3. What if the minimum required rate of return was 9 percent? How would that affect the residual income of the two divisions?

Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year, are as follows:

Data needed for year-end adjustments are as follows:

1. Journalize the six adjusting entries required at July 31, based on the data presented. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year?

3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages were omitted at the end of the year?

4. What would be the effect on the “Net increase or decrease in cash” on the statement of cash flows if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? over/understated/no effect

To support growth strategies and combat competition with rivals, businesses seek external capital to further develop products and services in hopes to create new sales opportunities. Since capital investment often involves a huge money investment, longer time engagement and risks of uncertainties, any decision shall not be taken lightly and shall be carefully evaluated before putting money to start a long-term project. The goal is to ultimately make the right accept/reject decision. Respond to the following in a minimum of 175 words:

Briefly describe (not define) the six models of a capital budgeting decision, which are typically defined as a 'go or no-go' decision. These are -

1. Payback period (standard)
2. Discounted payback period (modified from payback period)
3. Net present value (NPV) (standard)
4. Internal rate of return (IRR) (standard)
5. Modified internal rate of return (MIRR) (modified from IRR)
6. Profitability index (PI) (modified from NPV)

In reviewing these, which one(s) is appropriate for small projects and which one(s) is appropriate for larger projects?

Which criteria and techniques do you consider the most useful? Please explain

Please choose one of these models and provide an example by showing the model's calculation in action.

can you explain step by step: Chapter 16 accounting intermediate II -Basic and diluted EPS

1-Assume that the following data relative to Rice company for 2020 is available:

transactions in common shares change    Cumulative

Jan. 1,2020 Beginning number    650,000

Apr 1,2020 Purchase of treasury shares (50,000) 600,000

June 1,2020 100% Stock dividend 600,000 1,200,000

Dec 1,2020 Issuance of shares 200,000 1,400,000

5% cumulative convertible preferred stock

$1,000,000 sold at par on January 1, 2020 convertible into 200,000 shares of common stock

Stock options:

Exercisable at the option price of $30 per share. Average market price in 2020, $35 and there were 60,000 options outstanding since 2017

(A) compute the basic earnings per share for 2020.

(B) compute the diluted earnings per share for 2020

The following accounts and balances were drawn from the records of Barker Company at December 31, Year 2:

Required

Use the accounts and balances from Barker Company to construct an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows (show only totals for each activity on the statement of cash flows).

Yield to call

Seven years ago the Singleton Company issued 24-year bonds with a 11% annual coupon rate at their $1,000 par value. The bonds had a 6% call premium, with 5 years of call protection. Today Singleton called the bonds.

Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.

%

Explain why the investor should or should not be happy that Singleton called them.

Since the bonds have been called, interest rates must have risen sufficiently such that the YTC is greater than the YTM. If investors wish to reinvest their interest receipts, they can now do so at higher interest rates.

Since the bonds have been called, interest rates must have risen sufficiently such that the YTC is greater than the YTM. If investors wish to reinvest their interest receipts, they must do so at lower interest rates.

Since the bonds have been called, investors will receive a call premium and can declare a capital gain on their tax returns.

Since the bonds have been called, investors will no longer need to consider reinvestment rate risk.

Since the bonds have been called, interest rates must have fallen sufficiently such that the YTC is less than the YTM. If investors wish to reinvest their interest receipts, they must do so at lower interest rates.

Calculate the unknown amounts appearing in each column:

Net income is $40,000 raw materials Nov 1 $ 17,000 Nov 30? WIP Nov 1 $14,00 Nov 30 12,000 Finished goods Nov 1 ? Nov 30 9,000 sales revenue 102,000 Direct labor 10,000 Manufacturing OH 12,000 selling expenses 14,000 Administrative expenses 16,000 Cost of goods manufactured 40,000 raw materials purchased 10,000 What is ending raw material? What is beginning finished goods?

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,900 per month plus $42 per course plus $5 per student. The company’s sales should average $870 per student.

The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below:

Required:

1. Prepare the company’s planning budget for September.

2. Prepare the company’s flexible budget for September.

3. Calculate the revenue and spending variances for September.

Appendix: Adjustment Data on an End-of-Period Spreadsheet Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2019. In addition, the data for year-end adjustments are as follows: Fees earned, but not yet billed, $34. Supplies on hand, $8. Insurance premiums expired, $42. Depreciation expense, $17. Wages accrued, but not paid, $17. Enter the adjustment data, and place the balances in the Adjusted Trial Balance columns. If a box does not require an entry, leave it blank. Alert Security Services Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended October 31, 2019 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 126 Accounts Receivable 336 Supplies 34 Prepaid Insurance 50 Land 420 Equipment 168 Accum. Depr.-Equipment 17 Accounts Payable 151 Wages Payable 0 Brenda Schultz, Capital 789 Brenda Schultz, Drawing 34 Fees Earned 378 Wages Expense 84 Rent Expense 50 Insurance Expense 0 Utilities Expense 25 Supplies Expense 0 Depreciation Expense 0 Miscellaneous Expense 8 Totals 1,335 1,335