An investor sells short 500 shares of ABC Corporation on June 1, at a time when the price per share is $120. The position is closed out 3 months later, August 31, when the price per share is $100. A dividend of $4 per share was paid July 31, one month before the short position is closed out.
Suppose that the investor must open a margin account at the time the short position is taken. The margin required is 50% of the value of the stock sold short. The investor also earn 1% per month, compounded monthly, on the margin account. Find the investor's 3-month rate of return on the investment.
answer: 29.63%
In: Finance
You have been asked by the government of your home country to advise on public policy for innovation and entrepreneurship. Discuss your response, in the context of your country’s particular economic and innovation aspects.
In: Economics
Two scholarly references are required.
In: Operations Management
Entrepreneurship and Innovation concepts in selected Chinese and Western companies
Project overview:
Students work individually and analyze entrepreneurship and innovation concepts in one Chinese and one Western company belonging to the same industry. The main goal is to understand entrepreneurship and innovation “in practice”, and to compare the situation in China and Western countries.
General instructions:
Student should focus on the following key concepts related to innovation and entrepreneurship:
Assessment:
Report (2,500 words) based on this project work. APA style referencing.
In: Economics
Green Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Prepare schedules for cash receipts and cash payments, and determine ending balances for balance sheet. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2019 and expected service revenues for 2020 are November 2019, $80,000; December 2019, $90,000; January 2020, $100,000; February 2020, $120,000; and March 2020, $140,000. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019, $14,000; January 2020, $12,000; February 2020, $15,000; and March 2020, $18,000.
Instructions a. Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total:
1. Expected collections from clients.
2. Expected payments for landscaping supplies.
b. Determine the following balances at March 31, 2020:
1. Accounts receivable.
2. Accounts payable.
In: Accounting
What problems could a programmer encounter if they defined a destructor for a class but no copy constructor? Illustrate your description with an example class.
Programming language: C++
Requirement: provide answer along with one code example with illustration.
In: Computer Science
Hendry Corp. reported net incomes for the last three years as follows: 2018 2017 2016 $180,000 $240,000 $225,000 During the 2018 year-end audit, Hendry's newly appointed auditors discover that Hendry bought a machine on January 1, 2015 for $125,000 cash, with a $25,000 estimated residual value and a five-year life. The company debited an expense account for the entire cost of the asset. Hendry uses straight-line depreciation for all machinery. Instructions (Ignore all income tax effects) a) Prepare the general journal entry required to correct the books for this situation, assuming that the books have not been closed for 2018. b) Prepare a schedule showing, for each of the years 2016 to 2018, income before the effect of any accounting changes, the effect of the accounting changes, and the income after the effect of any accounting changes. c) Assume that the retained earnings balance at January 1, 2018 is $720,000 (before any adjustment). At what adjusted amount should this beginning retained earnings balance be shown on the financial statements?
In: Accounting
Hendry Corp. reported net incomes for the last three years as follows:
2018: $180,000
2017: $240,000
2016: $225,000
During the 2018 year-end audit, Hendry's newly appointed auditors discover that Hendry bought a machine on January 1, 2015 for $125,000 cash, with a $25,000 estimated residual value and a five-year life. The company debited an expense account for the entire cost of the asset. Hendry uses straight-line depreciation for all machinery.
Instructions (Ignore all income tax effects)
a) Prepare the general journal entry required to correct the books for this situation, assuming that the books have not been closed for 2018.
b) Prepare a schedule showing, for each of the years 2016 to 2018, income before the effect of any accounting changes, the effect of the accounting changes, and the income after the effect of any accounting changes.
c) Assume that the retained earnings balance at January 1, 2018 is $720,000 (before any adjustment). At what adjusted amount should this beginning retained earnings balance be shown on the financial statements?
In: Accounting
The following information has been provided on ABC, a Canadian controlled private corporation for the year ended December 31, 2020.
The following statement has been provided:
Sales | $895,000 | |
Cost of sales | $450,000 | |
General and administrative expenses | 225,000 | |
Research and development expenditures | 75,000 | |
Operating income | $145,000 | |
Other income | 35,000 | |
Net income before taxes | 180,000 | |
Provision for income taxes – current and future | 40,000 | |
Net income after taxes | $140,000 |
You have been provided some notes on the above information:
The information in the following notes has already been reflected in the above income statement.
Amortization expense recorded in the financial statements | $25,000 |
Landscaping costs re: factory premises | 1,500 |
Interest on bank loan obtained for the purpose of purchasing common shares in XYZ., a dividend-paying Canadian corporation | 6,700 |
Legal costs of arranging an agreement among shareholders | 2,200 |
Golf club membership fees | 1,800 |
Meals and entertainment for clients | 7,700 |
Management bonuses ($35,000 of the bonuses expensed in 2020, and shown as ‘‘Bonus Payable’’ on the Balance Sheet as at December 31, 2020 has not been paid at the time of filing the corporate tax return on June 30, 2021) | 55,000 |
Interest and penalties on income tax assessments, expensed for accounting purposes | 2,250 |
Dividends received | 5,500 |
Required: You will need to calculate the income from business / property for tax purposes for 2020. Start with the net income after taxes figure of $140,000. Then make the necessary adjustments and make supporting notes (1, 2, 3, etc.) to explain why something should stay in the financial statements, or why it should be adjusted.
In: Finance
Question 2
In March 2020, Snow Fun, Inc., made a rights issue at a subscription price of $10 a share. One new share can be purchased for every 3 shares held. Before the issue, there were 12 million shares outstanding, and the share price was $15.
(1) What is the total amount of new money raised?
(2) What is the expected stock price after the rights are issued? Why is the stock price expected to fall after the right issue?
(3) Suppose that the company had decided to issue the new stock at $8 instead of $10 a share, how many new shares would it have needed to raise the same sum of money? Show that Snow Fun’s shareholders are just as well off if it issues the shares at $8 a share rather than $10.
In: Finance