550. Mr. Lalit is bullish on He sells a Put option win
Q: Prepare journal entries for the following transactions. Make sure to observe the proper format of…
A:
Q: MahirapTo Company started in 2018, it produced 100,000 units from 2018 to 2020. The company had an…
A: Mixed cost for overhead is separated below using following formula of high and low method:- Variable…
Q: Company provided the balance sheet below: Cash 225 Accounts payable 150 Accounts receivable…
A: The acid test ratio is calculated as quick assets divided by current liabilities.
Q: 2. An electric sewing machine costs P10,000 with a salvage value of P500 at the end of 10 years.…
A: Fixed assets are those assets which are being held by the business for longer period of time.…
Q: If the residual income calculated for a division is a negative number, then which of the following…
A: Residual Income is calculated by reducing minimum required rate of return from Return on investment.…
Q: 17. LO.2 (WA EUP) For each of the following situations, use the weighted average method to determine…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: You have just won the state lottery and have two choices for collecting your winnings. You can…
A: Option-1: Receive $ 105,000 today The present value of option 1 will be equal to the amount to be…
Q: Machinery purchased for $100,000 by Deer Co. in 2016 was originally estimated to have a life of 10…
A: Depreciation expense is the non-cash expense which is recorded to show the effect of regular usage…
Q: $1:Snapshots involve embedding audit software modules within an application system to provide…
A: An audit software module within an application system to provide continuous monitoring of the system…
Q: A purchase (supplier sales) invoice document was received by your business. The net value recorded…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…
Q: Buenos Company has two divisions, Divisior X and Division Y. Division X has a productiom capacity of…
A: In the given question, Division X has production capacity of 6,000 units and current production…
Q: Upon investigation, an auditor concludes that the client has recognized an internally developed…
A: As per standards, an internally generated goodwill is unidentifiable therefore this internally…
Q: Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating…
A: Solution:- 1)Calculation of Times interest earned ratio as follows under:- Times interest earned…
Q: why is cost-benefit priciple higher in used car than a new car that consumers have to wait a year to…
A: Cost benefit analysis is the process that business use to analyze that which decision is make in the…
Q: .) Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income…
A: The net income of the company can be calculated by deducting all the expenses and costs from revenue…
Q: Consider why earnings management is considered important by many managers and management teams.…
A: Answer:- Earnings management meaning:- Earnings management is the use of accounting practices to…
Q: 25. LANY Corporation is deciding whether to pursue a restricted or relaxed working capital…
A: Times Interest Earned ratio is a measure of a company abilitybto meet out its debt (Interest…
Q: A. The risk the planned further audit procedures will not be able to detect misstatement should be…
A: Audit planning refers to the process of creating a strategy and the desired approach suitable needs…
Q: Weighted Average Cost of Capital Rust, Inc. plans to finance its expansion by raising the needed…
A: The weighted average cost of capital indicates the overall cost of capital from all the sources. It…
Q: A) Compute the return on equity (ROE) of Ka Ming Metal Manufacturing Ltd. (KM) and Sun Tool Metal…
A: Balance sheet and income statement of two companies C Ka Ming Metal Manufacturing Ltd. (KM) and…
Q: EasyLang Company provided the following information below Variable production costs P400,000 Fixed…
A: Direct costing is also known as variable costing, which says that all variable costs incurred for…
Q: question attached below. The answer is already provided, which means that will be your basis if your…
A: Given: Cost Of Vehicle = $ 55000 Salvage Value = $5000 Total service units = 250,000 miles, Usage…
Q: 6. S1. The high-low method is generally less accurate than the least-squares regression method for…
A: The given question is regarding the high low method vs least squares regression method. 1) High low…
Q: Robert Company purchased a new machine for P8,000,000 on January 1, 2022 for the purpose of leasing…
A: Operating Profit- The profit made by an organization from its normal business operations is referred…
Q: campi Traders as at 28 February 2022. Note: The Statement of Comprehensive Income and the
A: The statement of financial position as,
Q: 2024 Jul. 2 Purchased 3,500 shares of Luma, Inc. common stock at $12.00 per share. Delivery Dream…
A: GIVEN Jul. 2 Purchased 3,500 shares of Luma, Inc. common stock at $12.00 per share. Delivery…
Q: Units-of-activity Depreciation A truck acquired at a cost of $520,000 has an estimated residual…
A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…
Q: A flexible budget:
A: Budget is the estimation which a company has estimated for the cost driver or for the expenses and…
Q: 4. A stopwatch used for Time and Motion Study has a selling price of P1,500. If its selling price is…
A: Assets are the rights and resources being held by the business. Assets face depreciation or…
Q: Funds for replacement is provided by depreciation ________ 8. If adequate maintenance is incurred,…
A: 7.Funds for replacement is provided by depreciation Answer: True Explanation: Depreciation provides…
Q: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays…
A: Formula used : Cash paid to retailer = Invoice amount - cash discount amount. Deduction of discount…
Q: The Bohol Company uses standard costing. The following data are available for October: Actual…
A: Solution... Material quantity variance = P1,000 U Actual material = 23,500 pounds Standard…
Q: tax liabilit
A: Tax liability refers to the amount which is charged on the income of an individual, company, etc.…
Q: Count Amo On the first day of the fiscal year, a company issues a $6,300,000, 6%, 5-year bond that…
A: Discount on issue of bonds = face value - issue price = $6300000 - $6038029 =$261971
Q: Wan Company purchased a new machine on October 1, 2017, at a cost of $100,000. The company estimated…
A: Depreciation is an outlay which is reported in the books to reduce the asset's worth in the books…
Q: Expected sales 10,000 units at $8 each Variable costs $5 per unit Fixed Costs $21,000 Assume…
A: Unit Contribution margin = Selling price - Unit Variable cost = $8 - $5 = $3
Q: If the residual income calculated for a division is a negative number, then which of the following…
A: Residual Income is calculated by reducing minimum required rate of return from Return on investment.…
Q: 49. A cash budget can be prepared only after Group of answer choices a. determining that enough…
A: Cash Budget is the summary of Cash Receipts and Cash Payments for the period. While preparation of…
Q: Q Corporation, an S corporation, is solely owned by V. V’s stock basis at the beginning of the year…
A: Accumulated Adjustments Account (AAA) calculates and shows the amount that is taxed by Internal…
Q: Accounting Muckingjay Inc. opened in 2022. The company reported sales revenue of $486,000 and…
A: The necessary journal entry to record the Net operating loss to be carried shall be Deferred tax…
Q: 27. LO.2 (WA EUP; cost per WA EUP) BeGone manufactures spray cans of insect repel- lent. On August…
A: Given: - 1) begining WIP inventory =9,800 2) units started into production=81,500 3) units to…
Q: Tax Due Under OSD and Itemized Deductions Problem For 2021, Lili Corp., a domestic corporation, has…
A: Step 1: A deduction is a reduction in the taxable income of an individual taxpayer or corporation…
Q: Inrecent years, Marigold Company has purchased three machines. Because of frequent employee turnover…
A: Business organizations are required to charge the depreciation expense so as to fairly present the…
Q: If HOTEL’s tax rate is 30%, what amount should it report as bad debts expense in the income…
A: Solution Introduction When there is change in the accounting estimate the effect of the change shall…
Q: B Company provided the balance sheet below: Accounts Cash 225 150 payable Accounts receivable 600…
A: Formulas: Acid test ratio = Quick assets / Current liabilities where, Quick assets = Current assets…
Q: Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes…
A: Direct Materials Price Variance=Standard Price-Actual Price×Actual Quantity Direct Materials…
Q: employees allowing them to purchase one ordinary share Ordinary share capital, P100 par value,…
A: Answer to (1) Calculation of Basic erning per share: Basic EPS = Net income for equity shareholders…
Q: Accounting Explain five actions the audit firm would take as part of the client screening process,…
A: An audit is an inspection or inspection of various ledgers by a certified accountant, followed by a…
Q: For the year just ended, Lotlot Company had direct costs of P1 Million based on a production set up…
A: Incremental costs are the costs that have been incurred additionally on account of accepting one…
Q: wn temporarily for three months. The selling price and other c 00 -280 per unit -60 per unit 50,000…
A: The manufacturing cost is the total cost of all resources used in the manufacture of a product. The…
Step by step
Solved in 2 steps with 2 images
- 21. If Fincorp stock trades in a dealer market with bid price of 55.25 and asked price of 55.50, a) Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? b) Suppose you have submitted an order to sell at market. At what price will your trade be executed? c) Suppose you have submitted a limit order to sell at $55.62. What will happen? d) Suppose you have submitted a limit order to buy at $55.37. What will happen?Here is some price information on FinCorp stock. Suppose that FinCorp trades in a dealer market.Bid =55.25 Ask= 55.50a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed?b. Suppose you have submitted an order to sell at market. At what price will your trade be executed?c. Suppose you have submitted a limit order to sell at $55.62. What will happen?d. Suppose you have submitted a limit order to buy at $55.37. What will happen?1. The following are the limit prices and the quantities of limit sell orders of Stock LUCKY kept in the book: price 15 16 17 18 20 shares 100 50 100 100 1000 You want to buy 100 shares, and you strongly believe that the stock price will decrease. You, of course, also agree that the stock price can increase. You don’t have time to look at the price all the time. The worst price you can accept is $25. How should you make the order? If the price does increase to $25, what will be your buying price?
- 3. Suppose that a June put option to sell a share for $60 costs $4 and is held until June. (a) short position) make a profit? Under what circumstances will the seller of the option (i.e., the party with a (b) Under what circumstances will the option be exercised? (c) depends on the stock price at the maturity of the option. Draw a diagram showing how the profit from a short position in the optionAn investor owns Citibank stock at $75. They want to sell some 3-month out- of-the-money call options against their position. STRIKES 72.50 75 77.50 CALL PRICE 5.60 4.12 2.84 Create a table showing the profit and loss for underlying trading at 70, 72.5, 75, 77.5, 80 and 82.5 for all the positions and the option strategy. Draw an expiry pay-off diagram, using the prices in the table.5 Construct payoff tables or payoff diagrams on expiration to show what position in IBM puts, calls and/or underlying stock best expresses the investor's objectives described below. Assume IBM currently sells for $100. Make appropriate assumptions about the strike prices of options in each case. Ignore the cost of options. a/ An investor wants the position to be at least worth $75. Further the investor believes that the IBM stock price will go up but will at most reach $140.
- Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 46.54 46.89 a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) c. Suppose you have submitted a limit order to sell at $47.15. What will happen? The trade will not be executed The trade will be executed d. Suppose you have submitted a limit order to buy at $46.76. What will happen? The trade will not be executed The trade will be executedHere is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 36.33 36.68 Required: Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? Suppose you have submitted an order to sell at market. At what price will your trade be executed? Suppose you have submitted a limit order to sell at $36.76.What will happen? Suppose you have submitted a limit order to buy at $36.61. What will happen?A one-year call option on a stock with strike price of $90 costs $6 and a one-year put option on the same stock with strike price of $90 costs $7. Suppose that a trader buys one call option and one put option. a. What is the breakeven stock price, above which the trader makes a profit? b. What is the breakeven stock price, below which the trader makes a profit?
- An investor is bearish on a particular stock and decided to buy a put with a strike price of $25. Ignoring commissions, if the option was purchased for a price of $.85, what is the break-even point for the investor? $26.15 $25 $25.87 $27.86 $24.15You have written a call option on Walmart common stock. The option has an exercise price of $81, and Walmart’s stock currently trades at $79. The option premium is $1.60 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit if Walmart’s stock price decreases to $77 and stays there until the option expires? c. What is your net profit on the option if Walmart’s stock price increases to $87 at expiration of the option and the option holder exercises the option?1. You buy a call option on a stock for $7 with a strike price of $60. The stock currently sells for $65. The stock goes up to $75. What is your net profit or loss? 2. You sell a put option on a stock for $4 with a strike price of $30. The stock currently sells for $28. If the stock goes up to $35 what is your net profit or loss?
