Plexis Corporation holds 70 percent of Solar Company's voting common shares, acquired at book value, but none of its preferred shares. At the date of acquisition, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Solar Company. Summary balance sheets for the companies on December 31, 20X5, are as follows:

Neither of the preferred issues is convertible. Plexis's preferred pays a 9 percent annual dividend, and Solar's preferred pays a 10 percent dividend. Solar reported net income of $40,000 and paid a total of $15,000 of dividends in 20X5. Plexis reported income from its separate operations of $80,000 and paid total dividends of $45,000 in 20X5.

50) Based on the preceding information, what is the consolidated earnings per share for 20X5?

A) $16.97

B) $17.42

C) $18.72

D) $19.17

Answer: A

Please explain how to get this number!!!

You are a new consultant with the Boston Group and have been sent to advise the executives of penury Company. The company recently acquired product line L from an out-of-state concern and now plans to produce it, along with its old standby K, under one roof in a newly renovated facility. Management is quite proud of the acquisition, contending that the larger size and related cost savings will make the company far more profitable. The planner results of the month’s operations, based on management’s best estimates of the maximum product demanded at today’s selling price are:

Required:

Based on historical operations, K alone incurred fixed expenses of $40,000, and L alone incurred fixed expenses of $20,000. Find the break-even point in sales dollars and units for each product separately.

Give reasons why the fixed cost for the two products combined are expected to be less than the sum of the fixed costs of each product line operating as a separate business.

You are a new consultant with the Boston Group and have been sent to advise the executives of penury Company. The company recently acquired product line L from an out-of-state concern and now plans to produce it, along with its old standby K, under one roof in a newly renovated facility. Management is quite proud of the acquisition, contending that the larger size and related cost savings will make the company far more profitable. The planner results of the month’s operations, based on management’s best estimates of the maximum product demanded at today’s selling price are:

Required:

Based on historical operations, K alone incurred fixed expenses of $40,000, and L alone incurred fixed expenses of $20,000. Find the break-even point in sales dollars and units for each product separately.

Give reasons why the fixed cost for the two products combined are expected to be less than the sum of the fixed costs of each product line operating as a separate business.

write an essay in your own words on the current position of Pakistan economy . give an overview from 2013 to 2020 and suggest some policies do you think Pakistan should adopt. (1500 words)

Use the following transactions to create transactions for a service business of your choice:

Al Ain Services Company had the following transactions for January 2020.

January 1 The owner invested in the company cash $70,000 and Equipment $25,000.

January 2 The company purchased office supplies for $4,200, on account

January 5 Paid $600 for an insurance covering the full year

January 7 Provided a service to a client and received $27,500 cash.

January 9 The company borrowed $20,000 cash from the bank. Annual interest is 12% .

January 12 Received $15,000 cash in advance from Fayda Company in payment for a service to be completed within the 3 months.

January 15 The company purchased equipment for $60,000 and paid $12,000 cash. The remaining amount was on account.

January 20 Owner withdrew $5,500 cash from the company for personal use.

January 31 The company paid $ 2,800 cash for advertising in a local news paper.

I. Required:

A. Prepare general journal entries for the month.                                                [20 Marks]

B. Post entries to the Ledger                                                                                         [10 marks]

C. Prepare Trial balance                                                                                                   [10 Marks]

Following additional information was provided at the end of January 2019.

1. The insurance expense for January was not recorded.

2. The equipment has a useful life of 10 years. Record depreciation expense for January.

3. On January 31, physical count found that supplies of $1,300 were in hand.

4. $5,000 worth of services was provided to Fayda Company during January

5 The interest on note payable for $150 has not yet been paid.

6. Wages for the last 2 days of January was unpaid, weekly wages for 5-days a week is $15,000

II. Required

Prepare adjusting entries for the above information and prepare an adjusted Trial Balance.

                                                                                                                                                               [30 Marks]

III. Required

Prepare the following financial statements based from the above adjusted trial balance:

1. Income statement                                                                                             [10 Marks]
2. Statement of Owner’s Equity                                                                                        [5 Marks]
3. Classified Balance sheet                                                                                                 [15 Marks]

The Arm & Hammer^® product—sodium bicarbonate—was introduced in the US in 1846 as “baking soda.” For the next 100 years, Arm & Hammer^® was a staple in the typical American home.

Church & Dwight Company, a publically traded company, is the parent company of the Arm & Hammer^® product line. Although originally used only for baking purposes, the company has leveraged the other key attributes of basic baking soda (cleaning and deodorizing benefits) into numerous applications.

The first Arm & Hammer^® detergent was introduced as early as 1970. In 1972, the product benefits expanded to use inside the refrigerator and freezer to eliminate odors. By 2005, the Arm & Hammer^® product line included laundry detergent, carpet deodorizers, Dental Care^® products, cat litter, Clear Balance^® pool maintenance tablets; and CleanShower^® for the bathroom.

In addition, line filling was accomplished through acquisitions of companies like USA Detergents, Carter-Wallace, Inc., and Orange Glo International. These acquired product lines allowed Arm & Hammer^® to expand their product line further into the personal care and household product segments.

In 1995, Church & Dwight Co., Inc. reported annual sales of $600 million. Their 2007 annual report reflects annual sales of $2.22 billion—40% of which is generated by Arm & Hammer products. Church & Dwight Company divides their product lines into three segments: consumer domestic, consumer international, and special product division (B2B). In 2007, consumer domestic (of which Arm & Hammer^® is the major player) generated 71% of total revenues. Wal-Mart, Arm & Hammer’s^® leading retailer, produced 22% of total consumer domestic revenues.

Level 1: Qualitative Questions

1.   What is the core benefit of Arm & Hammer^® products?

2.   Would you consider Arm & Hammer^® to have a “full-line product strategy?”

3.   Would you consider Arm & Hammer products to be in direct competition with those offered by Proctor & Gamble? Why?

Level 2: Quantitative Questions

1.         In dollars, how important is the Wal-Mart relationship to the Arm & Hammer^® segment of Church & Dwight’s annual sales?

2.         Some marketing gurus warn that line expansions can dilute the brand. Do you feel this should be a concern for Arm & Hammer?

F. Jack comes to see you in February 2020. He is full of enthusiasm for a new product that he is about to launch on to the market. Unfortunately, his financial recklessness in the past has led him into being bankrupt twice, and he has only just been discharged by the court from his second bankruptcy. ‘Look here, Amben,’ he says, ‘with my new idea I’ll be a wealthy man before Christmas.’ ‘Calm down,’ you say, ‘and tell me all about it.’ Jack’s plans as far as cash is concerned for the next six months are:

(a) Opening cash (including bank) balance on 1 July 2020 £3,600

(b) Production in units:

(c) Raw materials used in production cost £15 per unit. Of this, 90 per cent is paid in the month of production and 10 per cent in the month after production.

(d) Direct labour costs of £24 per unit are payable in the month of production.

(e) Variable expenses are £6 per unit, payable 40 per cent in the same month as production and 60 per cent in the month following production.

(f) Sales at £60 per unit:

Debtors to pay their accounts three months after that in which sales are made.

(g) Fixed expenses of £1,200 per month payable each month.

(h) Machinery costing £6,000 to be paid for in September 2020. The machine has a useful life of 5 years and depreciation is computed using the reducing balance method.

(i) Will receive a legacy of £7,500 in November 2020 and will pay it into the business account.

(j) Drawings will be £900 per month.

You are required:

Draw up a cash budget for F. Jack showing the balance at the end of each month, from the above information for the six months ended 31 December 2020:

Sandra and Michael Wilson are the parents of Rory who just turned 5 years old (coincidentally on the same date that primary, secondary and university academic years commence). They own a four-bedroom home in Edinburgh. Sandra is a partner in a local dental practice and Michael is a stay at home dad. Sandra earns £100,000 a year (after tax).

Now that Rory is starting primary school, thoughts have turned to saving for his education. Rory is enrolled to attend a state (i.e. non fee-paying) primary school. The Wilsons plan to send Rory to a private secondary school (when he turns 11). The school is prestigious and its fees are set accordingly. Currently tuition is £20,000 per school year and are projected to rise at the rate of inflation. Currently around 2% per annum.

The Wilsons hope that Rory will subsequently attend their alma mater, Oxford University when he turns 18. Most undergraduate courses at Oxford have a four academic year duration. Undergraduate fees at Oxford are currently £9250 per annum and are projected to rise faster than inflation, at a rate of 4% per annum. In addition, as Rory would be living away from home if he attended Oxford, his parents envisage that his living costs (primarily student accommodation and food) would amount to £10,000 per annum (expressed in today’s prices). These living costs are projected to increase at the rate of inflation, 2% per annum.

Using a discount rate of 7%, what is the present value of the combined projected spend on Rory’s private school fees, university tuition and living costs? (Assume that all fees and living costs are incurred at the beginning of each academic year e.g. Rory’s first school fee invoice will arrive in exactly 6 years which coincides with his first day at secondary school when he turns 11).

The Wilsons plan to fund the expenditure on private school fees from Sandra’s income. They would however like to start investing today in a fund that would be used to pay Rory’s university fees and living costs. They would like to make an equal annual payment into that fund every year (starting in one years’ time) with a view to accumulating £120,000 by Rory’s 18th birthday. This £120,000 would then be drawn down over Rory’s time at Oxford to meet expenses as they come due.

How much money would they have to deposit into the fund every year (with the first payment one year from now) to meet that target assuming a conservative fund return estimate of 3% a year. Will the accumulated amount be enough to cover the joint fees and living costs during Rory’s time at Oxford?

3. The labor supply and demand equations in Mexico and the US are Ndmex = 140 – 2 Wmex and Nsmex = 80 NdUS = 600 – 4 WUS and NsUS = 260 (Notice: To make the exercise simple, we are assuming that the labor supply curves are perfectly vertical at 80 in México and at 260 in the US). where Ndmex and NdUS are the number of workers demanded in Mexico and the US (in millions of workers). Wmex and WUS are the yearly wage rates in Mexico and the US (in thousands of dollars). Nsmex and NsUS are the number of workers supplied in Mexico and the US (in millions of workers).

a. What are the equilibrium wages in Mexico and the US.

b. Due to the higher US wages (see your answer to part a), millions of Mexican workers want to emigrate to the US. However, the US inmigration authorities issue work permits for only 10 million Mexican workers. How will this limited flow of Mexican workers affect wages both in Mexico and the US (hint: if these flows take place, how many workers will there be left in México, how many workers will there be in the US, i.e., how do the labor supply curves shift?).

c. If an unlimited flow of Mexican workers is allowed (free movement of labor across borders), at the end, wages will be equal in both countries (basically, in practice, there will be just one unified labor market). What would be this wage? How many Mexican workers will emigrate to the US? How many Mexican workers will be demanded in the US? At the end, how many workers will there be in México and the US? (Hint: Find the total labor supply and demand equations).

d. With the creation of a Free Trade Zone in North America between the US, Mexico and Canada (the NAFTA agreement), the demand for Mexican food (produced mainly using labor intensive techniques) will increase. This in turn, will increase the demand for labor in Mexico. Asume that the new demand for labor in Mexico is: Ndmex = 240 – 2 Wmex Suppose that at the same time, the Mexican government sets a minimum wage of 80. Discuss the effects of these two simultaneous events on the Mexican labor market.

e. The US authorities know that wages for unskilled labor in the US will go down with the immigration of Mexican workers to the US. Suppose that the US authorities want to keep US wages at 69. How many Mexican workers should be allowed to enter to the US (i.e., how many work permits should the US government issue)?