(TCO A) On March 1, 2010, Ruiz Corporation issued $800,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2030. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2010, the fair market value of Ruiz's common stock was $40 per share and the fair market value of the warrants was $2.00. What amount should Ruiz record on March 1, 2010 as paid-in capital from stock warrants?
Each debenture can be converted into 25 shares of common stock at any time before 2019. What is the conversion value of the bond? Question 23 Warren Corporation’s stock sells for $42 per share. The company wants to sell some 20-year, annual interest, $1,000 par value bonds. Each bond would have 75 warrants attached to it, each exercisable into one share of stock at an exercise price of $47.
Dillinger and his gang went from bank to bank on a robbing spree. The banks had foreclosed millions of people during the depression so he started to have liked a Robin Hood status. Johnny Dillinger had lots of tactics to robbing banks. He would trick people or simply rob the place. One advantage john had been that he had a job as salesmen for bank security systems.
Sept. 1 | Purchased inventory from Orion Company on account for $50,000. Darby records purchases gross and uses a periodic inventory system. | Oct. 1 | Issued a $50,000, 12-month, 8% note to Orion in payment of account. | Oct. 1 | Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $81,000 note. | * Instructions (a) Prepare journal entries for the selected transactions above.
to Expected Realizable Value 60,000 EXERCISE 19-1 (15–20 minutes) (a) Pretax financial income for 2012 $400,000 Temporary difference resulting in future taxable amounts in 2013 (55,000) in 2014 (60,000) in 2015 (75,000) Taxable income for 2012 $210,000 Taxable income for 2012 $210,000 Enacted tax rate 30% Income taxes payable for 2012 $ 63,000 (b) | | Future Years | | | | 2013 | 2014 | 2015 | Total | | Future taxable (deductible) amounts | $55,000 | $60,000 | $75,000 | $190,000 | | Tax rate | X 30% | X 30% | X 30% | | | Deferred tax liability (asset) | $16,500 | $18,000 | $22,500 | $ 57,000 | Deferred tax liability at the end of 2012 $ 57,000 Deferred tax liability at the beginning of 2012 0 Deferred tax expense for 2012 (increase in deferred tax liability) 57,000 Current tax expense for 2012 (Income taxes payable) 63,000 Income tax expense for 2012 $120,000 Income Tax Expense 120,000 Income Taxes Payable 63,000 Deferred Tax Liability 57,000 (c) Income before income taxes $400,000 Income tax
Business Research Misrepresentation In the court case United States v. Dokich, case No. 08-2850, appealed and sustained on July 21, 2010, Melvin Dokich defrauded many investors for millions. Dokich sold stock for a fraudulent company named Efoora Incorporated. Efoora made claims of conducting research for developing diagnostic tests for HIV, mad-cow disease, and blood glucose levels. Efoora’s claims of research and testing was feloniously supported, and staged, by inviting potential investors and customers to Efoora’s headquarters in Buffalo Grove, Illinois.
ASX & Media Release Thursday 12 September 2013 Myer Full Year Results ending 27 July 2013 Full year total sales up 0.8 percent to $3,145 million Operating gross profit up 1.8 percent to $1,312 million Operating gross margin up 40 basis points to 41.7 percent Net profit after tax down 8.7 percent to $127 million Full year dividend of 18 cents, fully franked FY2013 Financial Highlights Sales Total sales up 0.8% to $3,145 million, up 0.4% on a comparable store sales basis Myer Exclusive Brands sales up $40 million to 20.0% of sales, Concessions up $18 million to 15.4% of sales Operating gross profit Operating gross profit up 1.8% to $1,312 million Operating gross profit margin up 40 basis points (bps) to 41.7% Earnings Cost of doing
Cash flow per share= $3.00 Price /cash flow ratio= 8.0 8.0 x 3.00 = $24.00 $24.00 / $1.50 = 16 (P/E) 3-5 ROE $100millions (sales) x 3% (profit margin) = $30 million (Net income) Net Income/assets= ROE $30 millions/$50 millions (total assets) = 6% 6% x 2.0 (equity multiplier) = 12% (ROE) 3-6 Du Pont Analysis ROA=10% Profit margin= 2% ROE= 15% ROA x Equity Multiplier= ROE (Profit Margin) (Total asset turnover)= ROA 10/2=5 (this is the firm’s total asset turnover) 15/10=1.5 (this is the firm’s equity multiplier) 3-7 Current and Quick Ratios Current assets= $3 million Current ratio= 1.5 Quick ratio= 1.0 Current assets/ Current liability= current ratio $3million/1.5= $2 million (level of current liability) Current Assets - Current Liability= Inventory $3millions – $2 millions = $1 million (level of
“The preferred and easiest method of concealing liabilities/expenses is to simply fail to record them” (Wells, 2011, p. 14). There are different types of evidence a fraud investigator must collect depending on what the company is trying to conceal. In Apollo’s case, it looks as if the company is trying to conceal a liability they owe for a shipment from Anglonesian Rehabilitation and Reprogramming Institute (ARRI) in December. According to the case, “Apollo personnel counted all inventory, including a shipment of shoes costing $8,434,889.09 that was received on December 31” (University of Phoenix, 2009, p. 90). However, according to Apollo’s Accounts Payable Schedule for the year ended December 31, 2011, there is no money owed to ARRI.
What happened to the Lindbergh baby? On March 1, 1932, Ollie Whateley, butler at the Charles Lindberg home in Hopewell, New Jersey, called the local police to report that the Lindbergh's infant son had been stolen. Within hours, local and state police, plus press and ordinary sensation seekers were all over the grounds. While local police saw a crude ladder, built in sections, lying near the window from which it appeared the baby had been taken, and two grooves where the ladder had rested, most other footprints and possible clues were obliterated in the rush to investigate the rain-soaked grounds. Lindbergh, hailed as the great American hero after his historic New York to Paris flight in 1927, took charge of the investigation